Pro-Business Climate for Process Industries
Louisiana’s low-tax environment offers business operations significant cost savings. According to a 50-state analysis by the Tax Foundation and KPMG: Location Matters: The State Tax Costs of Doing Business, Louisiana's tax burden ranks among the top 10 lowest in the nation for new facilities, relocations, and facility expansions for a variety of firm types, including:
- labor-intensive manufacturing
- capital-intensive manufacturing
- research and development facilities
- corporate headquarters
A location in Louisiana can reduce company costs because of the state’s low industrial electricity rates — 2015 rates averaged approximately 22 percent below the national average.
Louisiana’s industrial natural gas rates are also highly competitive, with the state’s 2015 rates averaging the lowest in the South and approximately 24 percent below the national average.
Expedited Permitting Reduces Start-up Time
Louisiana understands that a company’s ability to ramp up quickly and efficiently is a significant factor in deciding its location decision. To maximize time and efficiency for companies, the state has created an expedited environmental permit-processing program, which enables Louisiana to issue permits more quickly and efficiently than most states in the country.
The program proved to be a tremendous asset to Cheniere Energy as they identified an opportunity to expand and stabilize a volatile Liquefied Natural Gas (LNG) market with a new export terminal in Cameron where they already operated an LNG import terminal. Not only did such a massive undertaking require a substantial investment, Cheniere also needed proper permitting and qualified staff to manage the facility’s new capabilities.
Working closely with LED and Louisiana’s congressional delegation, Cheniere received authorization from the U.S. Department of Energy in May 2011 to become the first domestic export terminal authorized to export natural gas.