HB 1088

ENROLLED
 2026 Regular Session
  ACT No. 190
 HOUSE BILL NO. 1088
 BY REPRESENTATIVES BACALA, BAYHAM, BEAULLIEU, DEWITT, ECHOLS,
  EGAN, FISHER, JACKSON, MOORE, OWEN, SAWYER, TAYLOR,
  VENTRELLA, WYBLE, AND YOUNG
1AN ACT
2 To amend and reenact R.S. 47:303.1(B)(5) and to enact R.S. 47:305.82, relative to sales and
3use tax rebates; to authorize a state and local sales and use tax rebate on purchases
4of certain equipment, machinery, materials, and other items used in aerospace
5facilities and aerospace activities; to provide for requirements, limitations, and
6conditions with respect to the rebate; to provide for duties and functions of Louisiana
7Economic Development and the Department of Revenue with respect to the rebate;
8to provide for administration of the rebate; to provide for issuance of direct payment
9numbers to certain taxpayers; to provide for definitions; to provide for effectiveness;
10and to provide for related matters.
11 Be it enacted by the Legislature of Louisiana:
12Section 1. R.S. 47:303.1(B)(5) is hereby amended and reenacted and R.S. 47:305.82
13 is hereby enacted to read as follows:
14§303.1. Direct Payment Numbers
15*       *  *
16B.
17*       *  *
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 HB NO. 1088  ENROLLED
1(5) A DP Number shall be issued to a taxpayer who has entered into an
2agreement with the state pursuant to the provisions of R.S. 47:305.73 or 305.82 and
3who obtains the required approvals and meets all of the qualifications provided in
4this Section except Subparagraphs (1)(a) and (c) of this Subsection. The taxpayer
5may possess the DP Number for the entire term of the agreement that the taxpayer
6enters into pursuant to R.S. 47:305.73 or 305.82.
7*       *  *
8§305.82. Rebate; sales and use tax imposed by any taxing authority for purchases
9of equipment and other items used in aerospace facilities and aerospace
10activities
11A. As used in this Section, the following terms shall have the meanings
12ascribed to them in this Subsection unless the context clearly indicates otherwise:
13(1)(a) "Aerospace activity" means any act or activity related to the research,
14development, testing, manufacture, preparation, launch, operation, reentry, descent,
15landing, or post-landing recovery of a launch vehicle, spacecraft, payload, or related
16equipment, including but not limited to integration, conditioning, transport, and
17associated ground support operations, whether conducted on-site or involving
18overflight.
19(b) The term "aerospace activity" shall not mean any act or activity related
20to general administrative, managerial, or support functions, including but not limited
21to human resources, payroll, bookkeeping, accounting, legal, marketing, sales,
22information technology support, or other similar office or overhead activities,
23regardless of whether these functions are performed on-site at a manufacturing
24facility or elsewhere.
25(2) "Approved aerospace facility" means an aerospace facility that is located
26in Louisiana and certified by Louisiana Economic Development in accordance with
27the provisions of this Section.
28(3) "Approved aerospace facility contractor" means all of the following:
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 HB NO. 1088  ENROLLED
1(a)    A contractor or subcontractor purchasing, leasing, operating, or
2maintaining the approved aerospace facility.
3(b) A contractor or subcontractor providing services for the construction,
4repair, maintenance, or improvement of the approved aerospace facility or equipment
5used in aerospace activities at an approved aerospace facility.
6(4) "Approved aerospace facility owner" means the entity that enters into the
7agreement with Louisiana Economic Development as provided for in this Section.
8(5) "Department" means the Department of Revenue.
9B.(1)(a) Subject to the limitations provided in Subparagraph (b) of this
10Paragraph, an approved aerospace facility owner or approved aerospace facility
11contractor shall be eligible for a rebate, to be paid annually, of sales and use taxes
12of any taxing authority paid for the purchase, lease, rental, or use of machinery,
13equipment, materials, supplies, or services used directly in aerospace activities at an
14approved aerospace facility.
15(b) Only purchases made on or after July 1, 2026, shall be eligible for the
16rebate authorized in this Subsection.
17(2) To be certified as an approved aerospace facility by Louisiana Economic
18Development, the aerospace facility owner shall provide a sworn attestation that the
19project will create a minimum of two hundred new direct, permanent, full-time jobs
20in Louisiana and intends to expend at least one billion dollars in new capital
21investment in Louisiana on or after July 1, 2026, but before July 1, 2031.
22(3)(a) A facility that has been certified as an approved aerospace facility
23shall enter into an agreement with Louisiana Economic Development that comports
24with the requirements of this Paragraph.
25(b) The agreement shall provide a term of rebate eligibility with an initial
26term of twenty years, a list of all eligible recipients of the rebate, and language that
27authorizes the state to terminate the agreement and recapture any rebates if the
28approved aerospace facility fails to fulfill, or if Louisiana Economic Development
29determines that the facility will be unable to fulfill its statutory and contractual
30obligations. Failure to create a minimum of two hundred new direct, permanent,
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1full-time jobs in Louisiana or to expend one billion dollars in new capital investment
2in Louisiana by July 1, 2031, shall result in the termination of the rebate agreement
3with Louisiana Economic Development.
4(c) Upon the expiration of the initial term of the agreement, Louisiana
5Economic Development may renew the agreement for an additional ten years.
6(d) Louisiana Economic Development may include in the agreement any
7additional conditions that it deems appropriate.
8(4) An approved aerospace facility shall be issued a Direct Payment Number
9in accordance with the applicable provisions of R.S. 47:303.1.
10(5) The department may utilize any collection remedy authorized by R.S.
1147:1561.2 for any rebates subject to recapture based on termination of the agreement
12with Louisiana Economic Development or a determination that the purchase did not
13qualify for the rebate. If a rebate is subject to recapture, the approved aerospace
14facility owner shall reimburse the department or its agent for any costs incurred.
15Notwithstanding any provision of law to the contrary, recapture of a rebate based on
16a termination of the agreement may be initiated within the later of a time period set
17forth in R.S. 47:1561.2 or two years after the date of termination of the agreement.
18C.(1) Requests for the rebate of sales and use taxes levied by taxing
19authorities pursuant to the provisions of this Section shall be processed by the
20department. A taxpayer shall request a rebate of state tax using a form and in the
21manner prescribed by the department.
22(2) A taxpayer who requests a rebate pursuant to Subsection B of this
23Section shall do all of the following:
24(a) Obtain certification from Louisiana Economic Development that the
25aerospace facility is an approved aerospace facility eligible to receive a rebate. A
26copy of the certification shall be submitted to the department with the rebate request.
27(b) Submit documentation to the department evidencing the purchases
28eligible for the rebate.
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HB NO. 1088  ENROLLED
1D.(1) Requests for the rebate of local sales and use taxes pursuant to the
2provisions of this Section shall be processed by the appropriate local taxing
3authority. A taxpayer shall claim a rebate of local tax using a form and in the manner
4required by the local taxing authority.
5(2) A taxpayer who requests a rebate pursuant to Subsection B of this
6Section shall submit documentation to the local taxing authority evidencing the
7purchases eligible for the rebate.
8Section 2. This Act shall become effective on July 1, 2026.
  SPEAKER OF THE HOUSE OF REPRESENTATIVES
  PRESIDENT OF THE SENATE
  GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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