June 1, 2026

Louisiana has enacted two new tax incentives for manufacturing activities associated with aerospace programs.

An approved aerospace facility owner or contractor is eligible for a sales tax rebate, paid annually, for sales and use taxes paid for the purchase, lease, rental, or use of machinery, equipment, materials, supplies, or services used directly in aerospace activities. Purchases made on or after July 1, 2026, are eligible for the rebate.

In addition, the property tax exemption for certain manufacturing establishments has been extended to certain aerospace manufacturing establishments. Act 102 (H.B. 1179), Laws 2026, effective May 11, 2026; Act 190 (H.B. 1088), Laws 2026, effective July 1, 2026.

The information contained herein is general in nature and is not intended and should not be construed as legal, accounting, or tax advice or opinion provided by Ashmore Consulting LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Ashmore Consulting LLC or another tax professional prior to taking any action based upon this information. Ashmore Consulting LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.