https://neworleanscitybusiness.com/blog/2026/04/28/louisiana-aerospace-tax-breaks-space-projects/
In an effort to attract a large space flight project to Louisiana, state lawmakers are pushing through a package of bills to give special legal protections and tax breaks to aerospace companies, though details about what projects might be coming remain confidential.
The full Louisiana Legislature on Monday unanimously approved House Bills 1088 and 1179, both sponsored by Rep. Tony Bacala, R-Prairieville, to create new state tax breaks and shore up existing ones for aerospace companies. They both head to the governor’s desk. The first measure will take effect on July 1, while the second will take effect immediately after he signs it.
Both pieces of legislation were filed right before the deadline to submit bills last month and are some of the first bills to make it all the way through the legislative process during the session that started March 9.
House Bill 1088 would provide a sales tax rebate on the purchase or rental of items, equipment and materials used in aerospace facilities by companies that create at least 200 direct full-time jobs and spend at least $1 billion in capital before July 1, 2031.
Bacala’s other bill would ensure that aerospace manufacturers can claim the state’s Industrial Tax Exemption Program, which provides lucrative tax breaks on parish property taxes.
Bacala, in an interview, said aerospace manufacturers already qualified for ITEP under existing law and are reaffirmed in House Bill 1179.
There are several potential space flight projects that Louisiana is competing for, but the details are confidential. A few state officials, including legislators, are privy to more information about the potential project but have signed nondisclosure agreements and aren’t allowed to discuss them publicly.
“It’s always the way business has been done,” Bacala said. “It’s always the way it will be, and it’s probably best that way.”
Another proposal in the aerospace package, House Bill 1099, sponsored by Rep. Jack McFarland, R-Jonesboro, rapidly cleared the House Committee on Civil Law & Procedure Monday without debate or objection from any of the committee members.
The bill would protect aerospace companies from temporary restraining orders for claims of noise pollution and similar public nuisance lawsuits by creating what’s called a “special motion to strike,” which would require a plaintiff to show the court early on that they’re likely to win their lawsuit.
Joe Donahue, deputy executive counsel for Gov. Jeff Landry, attended the committee hearing in support of the bill but did not testify. He said in a later interview that a special motion to strike lets the defendant challenge the lawsuit at the earliest stage of litigation before having to file a response to the pleading.
Under current law, a special motion to strike is reserved for protecting a person’s freedom of speech by giving them a method to quickly defeat meritless defamation claims, Donahue explained. It is known in some states as an anti-SLAPP, or Strategic Lawsuit Against Public Participation.
“It is an existing procedure for the anti-SLAPP lawsuits, and the only difference is this would be an anti-SLAPP, Strategic Lawsuit Against Public Purposes,” Donahue said, changing the last word of the acronym. “It means it’s for public projects.”
McFarland, a House leader who chairs the Appropriations Committee, told the committee he was asked to sponsor the bill in an effort to compete with neighboring states on a recent trend of aerospace industry investments across the Southeast.
“This legislation makes us more attractive, puts us in a unique position to be competitive economically, especially in light of the fact that this is not something new but something that we’ve already been participating in,” he said, referring to NASA’s Michoud facility in New Orleans.
In a later interview, McFarland said he is also restricted by a non-disclosure agreement from discussing any details about the companies or projects that are considering Louisiana as a potential investment site.
Louisiana Economic Development, the state agency that negotiates with large companies to get them to build facilities in Louisiana, is currently involved in discussions on potential aerospace projects.
“I wouldn’t go so far as to say ‘negotiations’ just yet, but there are talks happening,” LED spokeswoman Emma Watson said in a phone call Monday.
McFarland is also sponsoring a measure that would make a large swath of aerospace records confidential and exempt from the Louisiana Public Records Law.
House Bill 1071, would apply to records related to blueprints, plans, designs, technical data, operations, security, flights, and other aerospace activity if the company holds a contract with the Department of Defense or maintains information about U.S. defense weapons or capabilities.
That bill, as of Monday, had already passed the House and was pending consideration in the Senate Governmental Affairs Committee.
The aerospace legislation package is reminiscent of a law enacted in 2024 that created generous tax breaks for data center facilities. At the time, there were no publicly known data center projects under consideration in Louisiana, but months later, state officials announced Meta’s $20 billion facility in Richland Parish. Negotiations had been held in private with a small group of lawmakers and state officials as that legislation made its way through the 2024 session, according to reporting from WWNO.
Watson, the Louisiana Economic Development spokeswoman, said it would “absolutely” be accurate to compare the current aerospace legislation to the bill adopted for the Meta data center in 2024.
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