Louisiana Manufacturers Get 80% Property Tax Break
Manufacturers planning Louisiana facility investments will see reduced recurring property tax costs if Gov. Jeff Landry grants final approval.
Updated on Nov. 4, 2026 in Manufacturing
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Louisiana's Board of Commerce and Industry approved Industrial Tax Exemption Program applications for three Ascension Parish manufacturers, representing nearly $5.4 million in combined investment. The applications now head to Gov. Jeff Landry for final approval under the state's 2025 ITEP rules.
Why it matters
The 80% property tax exemption on qualifying investments lowers the carrying cost of new plant and equipment for manufacturers choosing to expand in Louisiana. For operators weighing where to add capacity, the program turns a capital decision into a multi-year tax calculation.
The three projects total about $5.38 million in investment, with BE Steel's $3.25 million plan the largest single commitment. Projected first-year relief of $88,300 compares with about $22,100 in property taxes expected to flow to local bodies, and the stub estimates 10-year exemption totals of $408,800 for BE Steel and $236,600 for Electro Medical Equipment.
The players
Louisiana Board of Commerce and Industry
The state body that reviews and approves Industrial Tax Exemption Program applications, determining which manufacturing investments qualify for property tax relief.
Gov. Jeff Landry
Louisiana's governor, whose final approval is required before the three manufacturers' ITEP applications take effect.
BE Steel LLC
A manufacturer planning a new fabrication, office, and warehouse facility in Gonzales as part of a $3.25 million investment.
Electro Medical Equipment Co. Inc.
A medical equipment manufacturer in Prairieville expanding its production facility with a $1.65 million investment.
Blue Runner Foods Inc.
A food manufacturer in Gonzales investing $474,547 in a new boiler to support production reliability and efficiency.
The details
The Industrial Tax Exemption Program grants an 80% property tax exemption on qualifying investments, which lowers the recurring tax cost of new buildings and equipment. BE Steel plans an 18,000-square-foot fabrication facility with 4,000 square feet of office and storage space on Ashland Road in Gonzales. Electro Medical Equipment plans a 9,280-square-foot prefabricated metal building addition in Prairieville to increase production capacity, while Blue Runner Foods is installing a new boiler at its Gonzales plant to improve reliability and efficiency and reduce downtime.
Timeline
August 2025: BE Steel purchased roughly 10 acres of vacant land bordering Ashland and Pierce Roads for $626,000.
January: Blue Runner Foods expects its boiler operations to begin.
March 2028: BE Steel expects construction at its Gonzales site to run through this date.
Market Landscape
The approvals apply the state's 2025 ITEP rules to three Ascension Parish manufacturers, extending the program's use into specific capital projects in Gonzales and Prairieville. The awards show how the exemption is applied to individual facility builds, boiler upgrades, and production additions rather than only to large-scale headline investments.
Manufacturers evaluating Louisiana sites should model the 80% property tax exemption against projected build-out and equipment costs over the exemption period. Operators in capital-intensive segments should review how recurring property tax obligations change when a project qualifies, and consult a qualified accountant on how the exemption applies to their own assets.
The takeaway
Manufacturers planning capacity additions should treat ITEP eligibility as a line item in the site-selection model, since an 80% exemption can materially change the tax cost of a new facility. Track Gov. Jeff Landry's final decision on these applications and confirm eligibility requirements with a qualified tax professional before committing capital.
What happens next
Gov. Jeff Landry's final approval of the three ITEP applications is the next step, though the stub does not provide a date for that decision.
Further reading
For broader context on how state incentives shape factory investment decisions, explore more Manufacturing coverage.
Source note: This article includes information reported by Baton Rouge Business Report.
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