Taxes, Incentives, and Support Resources

The PILOT Program

What is it?

A Payment-in-Lieu-of-Taxes (PILOT) agreement is a contractual incentive payment made between a business and an eligible tax-exempt entity to replace a portion of the local property taxes that would otherwise be paid on new assets. PILOTs are often used as an economic development tool structured to offer favorable tax reductions to companies that create high-impact investments in a community.

As a political subdivision of the State of Louisiana, St. Tammany Economic Development Corporation (STEDC) was created to foster business development and advance sustainable commerce in St. Tammany Parish. Because of this status, STEDC can negotiate and enter into PILOT agreements with companies as an incentive to locate, expand, or remain in St. Tammany. When structuring a PILOT, STEDC negotiates an annual PILOT payment for eligible projects that is lower than the property taxes that would otherwise be due. During the term of the PILOT, STEDC retains symbolic ownership of the incentivized project improvements, leasing said assets back to the company for “rent” equal to the agreed-upon sum or terms. Favorable terms/rates are considered based on the determined positive benefit the project provides to St. Tammany Parish.

Who is Eligible?

Any company looking to locate or expand in St. Tammany Parish may apply, however there is baseline criteria that needs to be present for a PILOT Incentive to be feasible, including:

  • Project Capital Expenditures in excess of approximately $5 Million
  • Creation of 10 new full-time jobs*
  • At least 50% of the jobs must meet or exceed the local average salary**
  • If above criteria are met, project must undergo an economic impact analysis

Micro PILOT Eligibility

St. Tammany Economic Development Corporation also utilizes a small business version of the PILOT program known as a Micro PILOT. This tool has a scaled down benefit intended to help fill the gaps for smaller projects that may not meet the above criteria. The approval process is the same, but the eligibility is as follows:

  • Project Capital Expenditures must be in excess of $1 Million but less than $5 Million.
  • Must create at least 5 new full-time jobs*.
  • At least 50% of the jobs must meet or exceed the local average salary.
  • If above criteria are met, project must undergo an economic impact analysis.

How it Works?

  1. STEDC analyzes the project to determine necessary criteria has been met. This step requires the company to complete a project intake form and provide any additional required data to STEDC.
  2. STEDC commissions an economic impact analysis to determine impacts of the project on the local economy. Potential gaps in fire protection services are computed and figured into preliminary benefit framework.
  3. Project specs and results of the Impact Study are reviewed and considered by STEDC’s Finance Committee.
  4. Project specs and Impact Study are forwarded to STEDC’s Board of Commissioners with STEDC finance committee recommendations. Request for PILOT is either approved or denied by a vote of the STEDC Board of Commissioners. Company may be asked to make a presentation to the board.
  5. STEDC takes ownership of project assets from the company and leases it back to the company based on the predetermined terms, including the PILOT payments and annual administrative fees.
  6. Company makes annual PILOT payments to the Sheriff who distributes the PILOT payment to the applicable taxing bodies.
  7. Company pays administrative fee directly to STEDC.
  8. Under the lease, company is responsible for all liabilities, upkeep, maintenance, insurance, etc. on the project.

For more information

Please contact our Economic Development Specialist at: kbuckley@sttammanycorp.org

Download our PILOT Program information here

Business Support Resources

St. Tammany Economic Development Corporation works with the State of Louisiana to offer companies an opportunity to take advantage of programs that can help support and accelerate business growth and job creation.

Louisiana Economic Development’s (LED) Business Support mechanisms consist of:

An aerial view of a rural highway interchange with a bridge crossing over another road. Surrounding areas are covered in green fields and trees.
A woman working with a calculator, filing tax documents.
Modern office building, three-story, paved driveway, large windows, green landscaping.

Angel Investor Tax Credit

Up to a 25 percent tax credit for individual investors who invest in early stage, wealth-creating businesses that seek start-up and expansion capital.

A 15 percent or 20 percent tax credit on annual wages to qualified entertainment companies (QEC) that create a minimum of five well-paid net new jobs for Louisiana residents.

Provides a federal tax incentive for investors to re-invest their capital gains into Opportunity Funds.

Property tax abatement for up to 10 years on a manufacturer’s new investment and annual capitalized additions.

Up to 25 percent tax credit for musical and theatrical productions, refundable or transferable on a one-time basis.

Up to a 40 percent tax credit on eligible in-state production expenditures, including resident and non-resident labor.

A 10 percent or 15 percent credit on annual wages to qualified music industry-related companies (QMC) that create a minimum of three well-paid net new jobs for Louisiana residents.

Up to a 6 percent rebate on annual payroll expenses for up to 10 years and either a state sales/use tax rebate on capital expenses or a 1.5 percent project facility expense rebate for qualifying expenses.

A tax credit up to 30 percent to existing businesses with operating facilities in Louisiana to establish or continue research and development within the state.

A 100 percent property tax abatement for up to 10 years for the rehabilitation of an existing structure.

A production credit of 18 percent for eligible production expenditures.

For more information, contact Kyle Buckley, Economic Development Specialist, at 985-809-7874 or kbuckley@sttammanycorp.org.