HB 1088 — TAX/TAX REBATES: Authorizes a state and local sales and use tax rebate on the purchase of certain items used in aerospace facilities and activities (EN DECREASE GF RV See Note)

HLSENROLLED 26RS-2678 ENGROSSED Regular Session HOUSE BILL NO.

1088 BY REPRESENTATIVEREPRESENTATIVES BACALABACALA, TAX/TAXREBATES:BAYHAM, BEAULLIEU, DEWITT, ECHOLS, EGAN, FISHER, JACKSON, MOORE, OWEN, SAWYER, TAYLOR, VENTRELLA, WYBLE, AND YOUNG AN ACT ToamendandreenactR.S.47:303.1(B)(5)andtoenactR.S.47:305.82,relativetosalesand use tax rebates;

Authorizesastateandlocalsalesandusetaxrebateonthepurchase of certain items used in aerospace facilities and activities AN ACT Toamendand reenactR.S.

47:303.1(B)(5)andtoenactR.S.47:305.82,relativetosalesand use tax rebates;

* * * (5)Page A1 DP Number shall be issued to a taxpayer who has entered into an agreement with the state pursuant to the provisions of R.S.5 CODING:

47:305.73 or 305.82 and who obtains the required approvals and meets all of the qualifications provided in Page 1 of 6 CODING:

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1088 thisENROLLED Section(5) exceptA SubparagraphsDP (1)(a)Number andshall (c)be ofissued thisto Subsection.a taxpayer who has entered into an agreement with the state pursuant to the provisions of R.S.

47:305.73 or 305.82 and who obtains the required approvals and meets all of the qualifications provided in this Section except Subparagraphs (1)(a) and (c) of this Subsection.

(1)(a) "Aerospaceactivity" means anyact or activityrelatedtoactivityrelated to the research, development,development,testing, testing, manufacture,preparation,launch, operation, reentry,descent, landing, orpost-landingrecoveryofalaunchorpost-landingrecoveryofa launch vehicle, spacecraft,payload,orrelated equipment, including but not limited to integration, conditioning, transport, and associated ground support operations, whether conducted on-site or involving overflight.

(2) "Approvedaerospacefacility"meansanaerospacefacilitythatislocated in Louisiana and certifiedbyLouisianacertified byLouisiana Economic Development in accordancewith the provisions of this Section.

(a)Page A2 contractorof or5 subcontractorCODING: purchasing, leasing, operating, or maintaining the approved aerospace facility.

Page 2 of 6 CODING:

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1088 (b)ENROLLED (a) A contractor or subcontractor providingpurchasing, servicesleasing, foroperating, theor construction,maintaining repair,maintenance,orimprovementoftheapprovedaerospacefacilityorequipmentthe used in aerospace activities at an approved aerospace facility.

(b) A contractor or subcontractor providing services for the construction, repair,maintenance,orimprovementoftheapprovedaerospacefacilityorequipment used in aerospace activities at an approved aerospace facility.

(2) TobecertifiedasanapprovedaerospacefacilitybyLouisianaEconomic Development, the aerospacefacilityowner shall providea sworn attestation that the project will createa minimum of two hundred new direct, permanent,permanent,full-time full-time jobs in Louisiana and intends to expend at least one billion dollars in new capital investment in Louisiana on or after July 1, 2026, but before July 1, 2031.

Failure to create a minimum of two hundred new direct, permanent, full-timejobsinLouisianaortoexpendonebilliondollarsinnewcapitalinvestment Page 3 of 65 CODING:

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1088 ENROLLED full-timejobsinLouisianaortoexpendonebilliondollarsinnewcapitalinvestment in Louisiana by July 1, 2031, shall result in the termination of the rebate agreement with Louisiana Economic Development.

47:1561.2foranyrebatessubjecttorecapturebasedonterminationoftheagreement with LouisianaEconomicDevelopmentoradeterminationthatLouisianaEconomicDevelopmentoradeterminationthatthe the purchasedid not qualify for the rebate.

NotwithstandinganyprovisionNotwithstanding oflawtoanyprovision theof contrary,lawtothecontrary,recaptureofa recaptureofrebate abased rebatebasedonon a termination of the agreement may be initiated within the later of a time period set forth in R.S.

D.(1) Requests for the rebate of local sales and use taxes pursuant to the provisions of this Section shall be processed by the appropriate local taxing Page 4 of 65 CODING:

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1088 ENROLLED D.(1) Requests for the rebate of local sales and use taxes pursuant to the provisions of this Section shall be processed by the appropriate local taxing authority.

DIGESTSPEAKER ThedigestprintedbelowwaspreparedbyHouseLegislativeOF Services.THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:

ItPage constitutes5 nopart of the5 legislativeCODING: instrument.

The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] HB 1088 Engrossed 2026 Regular Session Bacala Abstract:

Authorizes a state and localsalesandusetax rebateforcertain approvedentities on purchasesofequipment,machinery,materials,and other items used in aerospace facilities and aerospace activities.

Proposed law defines "aerospace activity", "approved aerospace facility", "approved aerospace facility contractor", and "approved aerospace facility owner" for purposes of proposed law.

Proposed law provides that approved aerospace facility owners and approved aerospace facilitycontractors shall be eligible for a rebate, to be paid annually, of state and local sales andusetaxespaidforthepurchase,lease,rental,oruseofmachinery,equipment,materials, supplies, or services used directlyin aerospace activities at an approved aerospace facility.

Proposedlawstipulates thattherebateshallapplyexclusivelytoqualifyingpurchasesmade on or after July 1, 2026.

Proposed law requires certification of approved aerospace facilities by La.

Economic Development(LED).

Providesthatinordertobecertifiedasanapprovedaerospacefacility, the facility owner shall provide a sworn attestation to LED that the project will create a minimum of 200 new direct, permanent, full-time jobs in La.

and intends to expend at least $1B in new capital investment in La.

on or after July 1, 2026, but before July 1, 2031.

Proposed law requires parties that have been certified as approved aerospace facilities to enter into an agreement with LED that comports with the following requirements: