Louisiana data center incentives explained — Act 730, Quality Jobs, and parish PILOTs

What Act 730 actually does

Act 730 of the 2024 Regular Session created a Louisiana state and local sales and use tax rebate on qualifying data center equipment and the development, acquisition, construction, lease, repair, refurbishment, expansion, and renovation of an approved data center. The rebate is paid annually after certification.

The initial rebate term is 20 years, with an option to renew for an additional 10 years — a 30-year total horizon that materially de-risks long-duration AI compute capex.

To qualify, an operator must (1) be certified by the Louisiana Department of Economic Development, (2) provide a sworn attestation that the project will create at least 50 new, direct, permanent Louisiana jobs, and (3) commit to at least $200 million in new capital investment in Louisiana between July 1, 2024 and July 1, 2029.

Stacking incentives: Quality Jobs and parish PILOTs

Act 730 is rarely used alone. Operators typically also enroll in the Louisiana Quality Jobs (QJ) program for a 5-year (renewable 5) payroll rebate of up to 6% on new direct jobs above set wage thresholds, plus a state sales/use tax rebate on capital expenditures during construction.

On top of the state stack, parishes routinely negotiate Payments in Lieu of Taxes (PILOTs) — typically a step-up schedule that gives the operator 80–100% ad-valorem relief in the early years before grading toward full taxation. Each parish council approves the PILOT agreement publicly, which means the term sheet is discoverable through council minutes.

• State stack: Act 730 sales/use exemption + QJ payroll rebate + state ITEP (subject to local approval).
• Local stack: Parish PILOT (typical 80–100% early-year ad-valorem relief) + Industrial Tax Exemption Program (ITEP) override.
• Utility side: Special tariffs filed with the Louisiana Public Service Commission (LPSC) that ring-fence data-center load costs so residential customers are not subsidizing the project.

How Meta, Amazon, and Hut 8 are using the stack

Meta's Hyperion campus in Richland Parish anchors Entergy Louisiana's largest-ever industrial customer commitment, and the public record shows the project relying on Act 730 plus a Richland Parish PILOT to clear underwriting.

Amazon's $12 billion multi-site campuses in Caddo and Bossier Parishes are powered by AEP SWEPCO under a rate structure that recovers project-specific transmission build from Amazon — not residential customers — and benefits from the same Act 730 framework.

Hut 8's River Bend AI campus in West Feliciana, anchored by a 15-year, 245 MW lease worth $7.0 billion in total contract value, names Act 730 and the Quality Jobs program directly in its diligence pack.

Where the catch is

The Department of Economic Development may terminate the agreement if the recipient fails to meet job or capex commitments. The $200M / 50-job floor is binding, not aspirational.

PILOT agreements expire and parish councils can refuse renewal — operators should model the post-PILOT ad-valorem cliff explicitly.

Act 730 covers equipment and qualified construction costs — it does not exempt income tax or franchise tax obligations.