Industrial & Commercial Abatement Program (ICAP)The 2. Renewal Period is Now Open. To be eligible, industrial and commercial buildings must be built, modernized, expanded, or otherwise physically improved. ICAP replaced the Industrial Commercial Exemption Program (ICIP) which ended in 2. Previously approved ICIP benefits were not affected. Applicants that successfully submitted their preliminary application within the required timeframe can use the combined Final ICIP/ICAP application below. Requirements. Location. New Commercial Construction can be anywhere in the City except in some parts of Manhattan- The area south of 9. Street (including the south side 9. Street) and north of Murray, Frankfort, and Dover Streets does not qualify. Commercial Renovations can be anywhere in the City except in some parts of Manhattan- Areas that do not qualify: between 5. Street and 9. 6th Street (including north side of 5. This is Louisiana’s original incentive program, for capital investments, and is. INDUSTRIAL PROPERTY TAX EXEMPTION.With Changes to Commercial Property Tax Program. THE INDUSTRIAL AND COMMERCIAL INCENTIVE PROGRAM. The Industrial Tax Exemption Program (ITEP) is a full,100 percent exemption from local property taxes, established in the. More property tax topics; Property tax exemptions. Exemption reporting requirements. The Industrial Ad Valorem Tax Exemption Program (ITEP) abates, up to ten years, local property taxes (Ad. Below 5. 9th Street, specific commercial Renovation benefits are available and additional benefits are provided in. Garment Center District. Lower Manhattan in the area between Murray Street, Battery Place, South Street and West Street. Additional benefits may be granted for new commercial construction or renovations in special areas of the City. Benefits are not available for any other utility property. Retail: A property may be subject to different abatement schedules based on the percentage used for retail. Residential: No more than 2. If so, apportionment is required. How to Apply. File an ICAP Preliminary Application. After you submit the ICAP Preliminary Application you must get a building permit . If no building permit is required for the construction, you must submit a notarized letter from the project's architect or engineer notifying the Department of Finance within thirty calendar days of the end of construction. File all required annual Income and Expense Statements (RPIEs) for the property. Report all current construction to the Department of Finance semi- annually. This is required during the entire construction or renovation period until completion. Renewing Your Abatement Every Borough- Block- Lot with an ICIP abatement (may have more than one) is required to file a renewal each year in order to continue receiving the abatement. The Final Application must be filed within one year from the building permit issuance date, or if no permit is required, within one year from the start date of construction. If you file the Final Application later than one year after the building permit was issued or construction started you will automatically be denied. Forms. Preliminary ICAP Application and Instructions. Final ICAP Application. View Benefits Online. Click Below. Enter your borough, block and lot or property address to view your benefits. View Property Information. Contact 3. 11 or Email Us. When they do that process, they also assign the North American Industrial Classification System (NAICS) code to the company to identify the type of business. If the number begins with a 3. If you do not have this number, and you still feel that your project is manufacturing, there will be additional steps required to confirm your eligibility. One is a detailed description of the process that you consider manufacturing; the other will be a site inspection to confirm that information. To find out what NAICS code you have, call 2. Give them your UID (Unemployment ID #) and they can tell you what code has been assigned to your company. If you disagree with the designation, they can tell you what you need to do to correct the number. Your company's application will only be allowed if there is more than 5. NAICS code. Q: What happens if it's determined that I have a manufacturing process on my site, but I don't have the NAICS code that qualifies? A: Your company's application will only be allowed if there is more than 5. NAICS code. The application can only encompass the manufacturing related assets, not any ancillary assets such as Administration, Warehouse or other support activities. Q: How do I apply to participate in the Industrial Tax Exemption Program? A: If your project is going to cost more than $5 million or go longer than 1. Advance Notification with a $2. The Office of Business Incentives Services will acknowledge receipt and send you a URL link to download your application packet, which will include program instructions, procedures, due dates, and a timeline of the program steps. If your project is less than 1. Miscellaneous Capital Additions. This will be discussed later. Q: What is an Advance Notification Form? A: A document notifying Louisiana Economic Development of an intended project before starting construction, purchasing, or hiring new employees. Q: Where can I find the Advance Notification form? A: The Advance Notification form should be completed through Fastlane, LED's secure online filing system. Q: What is covered by the exemption? A: This exemption applies to all improvements to the land, buildings, machinery, equipment, and any other property, that is part of the manufacturing process. For example: Elmer Candy Corporation started a new line of candy. They invested in manufacturing equipment to produce their new candy line. They also had to expand their existing facility to incorporate this new line and equipment. The new investment was exempted for ten years. Q: What is the difference between an Application and Advance Notification? A: An Advance Notification provides an estimate of your project's total investment and expected new jobs. An Application is submitted after your project is complete and gives actual figures of the expenditures and investments associated with your project. Q: What is the application process? A: Ninety days after a project (i. If there is an advance for the project, then the advance number is listed on the application. If there is no advance, then no number is listed on the application. There are two ways to file: One is online through our Fast. Lane system, the other is by hard copy. Filing online requires the use of a credit card or e- check. Filing by hard copy requires payment by check. Q: What items are eligible for exemption? A: Improvements to site and facility - including non- movable items used to support manufacturing process - i. Q: How do you know if an asset is ineligible? A: If an asset has ever had Louisiana Property Tax paid on it, it's not eligible; this includes used equipment purchased in- state. If you cannot find out if taxes have been paid, then it is best not to file for that equipment. Land is NEVER eligible. Items that are mobile or leave the plant site are not eligible. For example: Company purchases a pickup truck to use on site. The truck does not have a Louisiana license plate so it cannot leave the plant. This truck would be eligible. However, if they put a license on the truck - even if it never left the plant - it's not eligible because the opportunity is there for it to leave. Another example is laptops. If the company uses laptops in their sales and marketing or administrative offices, they are not eligible. If that laptop is physically tied into the manufacturing process, then it's eligible. Q: How does a company get approved? A: Once an application has been received at LED, staff reviews the information and contacts the company for any questionable items. After the review is completed and any changes are noted, the application is put on the agenda for approval by the Board of Commerce and Industry. After the meeting and if the application is approved, a contract is issued. The process continues through the execution of the contract by the governor. Q: You mentioned Miscellaneous Capital Additions, what are they? A: A manufacturer may submit an application with an accumulation of Miscellaneous Capital Additions (MCA) for a compilation of small capitalized expenditures (projects) which are completed by the end of a calendar year and not greater than $5 million or longer than 1. MCA applications must be postmarked no later than March 3. October 3. 1 for Orleans Parish) of the year following the year these expenditures were made. Each month or portion of a month that you file late, you lose a year of exemption, up to five years. Each MCA application may not exceed $5 million. More than one MCA application may be submitted per year. MCAs are for the calendar year only. Q: What happens if I only have one piece of equipment or my project is short lived? Do I have to wait until the deadline to file my MCA? A: No, you can file your MCA in the same year the project is finished within 9. One of the rules of the program requires that if you wait until more than 6 months after your project is completed, you have to get a statement from the Assessor in the parish telling me that the project is either not on the tax rolls or that property taxes haven't been paid on the project. Therefore, under the scenario above, if your project started on January 7 and ended February 2, 2. May 2. You could legally wait until March 3. Assessor with the application. Q: Does the six month requirement pertain to applications with advances? A: Yes, there is no difference in the rule. It simply states that if the project is operational or complete and an application is filed six months or more after the end of the project, then the statement is required. The key is the ending date. Q: The Application asks for a . What is this? A: Obsolete equipment is equipment which is either replaced or rebuilt. Below are examples where the reporting of obsolete dollars is required. Replaced Equipment: An applicant replaces an existing motor which cost, when purchased 1. The applicant is entitled to an exemption on the $1. The total cost of the new motor should be indicated on the application and the replaced motor's original cost should be reflected on the front page of the application in the space marked restricted amount (obsolete equipment). Rebuilt Equipment: If an item needs to be rebuilt, you are entitled to the difference in cost of rebuilding the item at today's cost minus the cost of the rebuild of this item when it was purchased. If the original item was 1. Replaced Equipment under Property Tax Exemption: Items which are currently enjoying an exemption and are replaced must be reported as obsolete equipment. The applicant will not lose the remaining years of exemption on the obsolete dollar amount. No Exceptions: Any item which is either rebuilt or replaced that has never enjoyed a property tax exemption must also be reported as obsolete equipment. In all scenarios, the original cost must be identified when possible and if no records exist an estimate cost must be given. Under the new rules for the program, there is an exception to all of the above. A deduction for the original cost of property to be replaced will not be made if the project will result in investment that exceeds $5. A deduction for the original cost of property to be replaced will not be made if the project is related to the replacement or reconstruction of property after the destruction of or damage to such property as the result of a qualified disaster declared by federal state or local authority - in this case as determined by the Secretary of LED. Additional information is available under Section 5. Industrial Tax Exemption Program Rules. Q: Are there other steps to the program? A: Yes, when a company gets their fully executed contract, they also receive three forms that are required to be filed: PCR - Project Completion Report - need two dates - date project or equipment became operational and date project completed. This form includes a $2. AFC - Affidavit of Final Cost - last chance to make any changes to the project cost - include any costs or items you may have overlooked - or that occurred during the project after you submitted the application. This form includes a $2. One caveat, if the cost of the project changes substantially from the initial application, the difference in application fee is required. The Application fee is $5. However, when they file their Affidavit of Final Cost, they include all the eligible expenditures during that time frame and the costs go from $2. When you multiply the $2. Now, when you multiply the $2,5. That is a difference of $1,6. Annual Report Form. Due not later than 5/1 following the year of board action. Once these forms are received and processed, the project is complete until the renewal is due. Q: When is the renewal due? A: The company must request contract renewal within the six months prior to contract ending date. For all parishes but Orleans, the renewal must be completed, turned into LED and approved by the Board of Commerce and Industry before 1. As an example, the company filed for 2. The renewal is due 1. If the contract is not renewed and approved by the Board prior to that date, the contract has expired as of 1.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
December 2016
Categories |