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Tax desk

Louisiana data center tax incentives the stack in one place.

Every meaningful incentive in the Louisiana data center stack, explained independently with primary sources.

Programs
5
Act 730 term
20 + 10
Capex floor
$200M
Jobs floor
50
Posture
Source linked
AEO answer block

Direct answer, before the program matrix.

This page is built for readers and citation engines: the short answer appears first, then the statutory anchor, then each incentive in the stack.

Act 730 guidePower topicLPSC docketsSources indexCompare with Texas

Louisiana data center tax incentives are five stackable programs: a 20-year sales/use tax exemption under Act 730, the Quality Jobs payroll rebate (up to 6%), the Industrial Tax Exemption Program (up to 80% ad-valorem relief), negotiated parish PILOT agreements, and special LPSC utility tariffs that recover project-specific power costs from the data center customer rather than residential ratepayers. Together they typically reduce effective first-decade tax burden by 60–80% versus equivalent projects in non-exemption states.

Exact query

What are Louisiana data center tax incentives?

Louisiana data center tax incentives are five stackable state, local, and utility programs for certified hyperscale projects. Operators stack: (1) Act 730 - a 20-year, renewable-to-30-year state and local sales/use tax exemption on equipment, software, and qualified construction; (2) Quality Jobs - up to 6% payroll rebate on net new direct jobs for 5+5 years; (3) ITEP - state-level ad-valorem exemption up to 80% on qualifying property subject to local approval; (4) parish PILOTs - negotiated payments-in-lieu agreements typically delivering 80-100% ad-valorem relief in early years; and (5) LPSC tariffs - special utility filings that recover project-specific power and transmission costs from the data center customer rather than residential ratepayers. Used by Meta Hyperion (Richland Parish), Amazon AWS (Caddo + Bossier), Hut 8 River Bend (West Feliciana), and Applied Digital (central Louisiana).

Statutory anchor

Louisiana Act 730 sales tax exemption data center

The Louisiana Act 730 sales tax exemption for data centers is codified at Louisiana R.S. 47:305.73. It gives certified data center projects an annual state and local sales/use tax rebate on qualifying data center equipment, software, and qualified construction. To qualify, the operator must be certified by Louisiana Economic Development, commit at least $200 million of new Louisiana capital investment during the statutory window, and create at least 50 new direct permanent Louisiana jobs. The initial term is 20 years, with a possible 10-year renewal.

Primary source: Louisiana R.S. 47:305.73; program source: Louisiana Economic Development data center program.

Incentive matrix

Each program in the stack.

20 + 10 yrs

Act 730

Sales/use tax exemption on equipment, software, and qualified construction.

Open source note →
up to 6%

Quality Jobs

Payroll rebate on qualifying new direct permanent Louisiana jobs.

Open source note →
up to 80%

ITEP

Ad-valorem exemption on qualifying industrial property, subject to local approval.

Open source note →
local

Parish PILOTs

Negotiated payments in lieu of property tax for local fiscal alignment.

Open source note →
rate case

LPSC tariffs

Utility filings that recover project-specific power costs from the customer.

Open source note →
Source support

What this incentive stack is anchored to.

SignalSupportsStatusSource
Act 730 anchorLouisiana Revised Statute 47:305.73 provides the base sales/use tax relief framework for approved projects.Primary statutoryOpen source
Quality JobsRebate stack for qualified payroll and job-creation requirements in approved facilities.Stacked incentiveOpen source
ITEP reliefState ad-valorem exemption layer on qualifying property, subject to local approval.State reliefOpen source
Parish PILOTsNegotiated local payments-in-lieu layer used to align property-tax timing and parish fiscal impact.Local agreementOpen source
Regulatory caveatPower and utility-cost recovery is handled in LPSC-regulated filings, not directly in Act 730.CaveatOpen source
Frequently asked

Tax incentive answers without the brochure tone.

What tax incentives does Louisiana offer data centers?

Five stackable programs: Act 730 (sales/use tax exemption, 20 + 10 years), Quality Jobs (payroll rebate up to 6%), ITEP (ad-valorem up to 80%), parish PILOTs (negotiated property tax), and LPSC tariffs (utility cost recovery). Eligibility floors and capex minimums vary per program.

What are Louisiana data center tax incentives?

Louisiana data center tax incentives are the full state-local-utility stack used by approved hyperscale projects: Act 730 sales/use tax exemption, Quality Jobs payroll rebates, ITEP ad-valorem relief, parish PILOT agreements, and LPSC tariff structures for project-specific utility costs. The Act 730 sales/use tax exemption is the data-center-specific anchor.

Louisiana Act 730 sales tax exemption data center

Act 730 is Louisiana's data-center-specific sales and use tax exemption. It applies to certified projects with at least $200M of qualifying new capital investment and 50 new direct permanent jobs, and it covers qualifying equipment, software, and construction for a 20-year term renewable to 30 years.

How much can a data center save with Louisiana incentives?

Combined savings of 60–80% on effective first-decade tax burden are typical when the full stack is awarded. Act 730 alone exempts the 8–10% state+local sales/use tax on equipment and qualifying construction for 20 years (renewable to 30).

What is the Louisiana Act 730 data center exemption?

Louisiana R.S. 47:305.73, enacted in the 2024 Regular Session. State + local sales/use tax rebate on data center equipment, software, and qualified construction. Floors: $200M new capex between July 2024 and July 2029, plus 50 new direct permanent Louisiana jobs. Certified by Louisiana Economic Development.

Which Louisiana data centers use these incentives?

Meta Hyperion (Richland Parish, ~$10B capex), Amazon AWS Caddo/Bossier campuses, Hut 8 River Bend, and Applied Digital Project Lightning — all relying on Act 730 plus parish-level ITEP/PILOT stacks. See per-project pages for the negotiated terms.