Shintech Louisiana’s $3.4 billion expansion in Iberville Parish has moved closer to receiving a full property tax exemption that could eliminate more than $52 million in property taxes on its new investment in a fully taxable year. The Louisiana Board of Commerce and Industry last week approved Shintech’s Industrial Tax Exemption Program application at a 100% exemption rate, rather than the program’s standard 80%. The exemption still requires final approval from Gov. Jeff Landry.
Shintech plans to invest $3.4 billion to expand its manufacturing complex near Plaquemine. The project includes a second ethylene production unit and new chlor-alkali and vinyl chloride monomer units, along with utilities and other supporting infrastructure. The first phase is expected to be completed in 2030.
According to the company’s application sent to the Board of Commerce and Industry, $100 million of the investment will go toward expanding facilities, while the remaining $3.3 billion is earmarked for equipment and machinery.
The expansion is expected to create 163 direct jobs with an average annual salary of $117,329 while retaining 725 existing positions, according to Louisiana Economic Development. The project is also expected to generate thousands of construction jobs and about 100 new contractor positions.
The Iberville Parish ITEP Committee recommended the 100% exemption in June after determining the expansion qualified as a megaproject.
Projects involving at least $500 million in capital expenditures can qualify as “megaprojects” under Louisiana’s current ITEP rules and receive exemptions ranging from 93% to 100%.
Based on the project’s $3.4 billion investment and the millage rate used in the application, the new property would generate an estimated $52.6 million in annual property taxes before an exemption.
At the standard 80% exemption rate, Shintech would receive about $42.1 million in annual tax relief and pay about $10.5 million in a fully taxable year. At the approved 100% rate, the qualifying property would be fully exempt, giving Shintech roughly $10.5 million more in annual tax savings than under the standard rate.
The application estimates the standard 80% exemption would be worth about $420.6 million over 10 years.
Those figures apply to the new investment and do not eliminate taxes on Shintech’s existing property. The company reported paying about $8.7 million in property taxes on its existing site in the most recent year covered by the application.
