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LA — State Policy Updated January 2026

Louisiana

Statewide incentives and constraints, plus key utility/regulatory actions and active policy debate.

Data Center Sales and Use Tax Rebate Resource Adequacy Demonstration Requirements Large-Load Fast-Track Conditions Utility Regulation

Overview

Louisiana has positioned itself as a data center destination through a generous state and local sales tax rebate program that runs for 20 years, renewable for another 10. At the same time, the Louisiana Public Service Commission (LPSC) has tightened capacity planning requirements for utilities and introduced a fast-track approval process for large loads — both changes directly shaped by the Meta data center buildout in Richland Parish. The state’s policy mix combines financial incentives with new utility oversight designed to ensure the grid can handle the load.

Incentives

Data Center Sales and Use Tax Rebate

Louisiana offers a state and local sales and use tax rebate for approved data center facilities certified by Louisiana Economic Development (LED).[1]

  • Covers sales and use tax on data center equipment and on development, acquisition, construction, lease, repair, refurbishment, expansion, and renovation costs for the facility.[1]
  • Requires at least $200 million in new capital investment and creation of at least 50 new direct, permanent jobs in Louisiana on or after July 1, 2024 and before July 1, 2029.[1]
  • Grants a 20-year term of rebate eligibility, with one possible 10-year renewal.[1]
  • LED agreement must include recapture authority if the project fails to meet obligations, and LED may add additional conditions.[1]
  • Enacted by Act 730 (HB 827), effective July 1, 2024.[1]

Requirements and Conditions

Resource Adequacy Demonstration

The LPSC adopted a rule requiring annual Resource Adequacy Demonstrations by Louisiana load-serving entities in the MISO footprint.[2] This rule ensures utilities plan for the capacity needed to serve large new loads like data centers.

  • Beginning February 1, 2029, utilities must demonstrate they have procured 90% of required capacity for each planning year, with the intent to reach 100% of the reserve margin requirement.[2]
  • The Commission may impose locational requirements for qualified capacity resources if reliability or the public interest requires it.[2]
  • Adopted June 19, 2024 (Order R-36263).[2]

Large-Load Fast-Track Conditions

The LPSC approved a proposal in December 2025 to shorten the review process for large-load cases to eight months, with a “lightning” process for certain capacity additions.[3]

  • Eligibility requires a long-term electric service agreement of at least 15 years and a signed letter from Louisiana Economic Development’s secretary.[3]
  • This process is designed to accelerate time-to-power for data centers while ensuring they commit to long-term power purchases.[3]

Utility and Grid Rules

LPSC Approval of Entergy Louisiana Infrastructure for Meta

In August 2025, the LPSC approved Entergy Louisiana’s plan to build three new combined-cycle gas plants and new transmission facilities to serve Meta’s Richland Parish data center and improve system reliability.[4]

  • The approval also authorized Entergy Louisiana to procure up to 1,500 MW of solar resources through an expedited process.[4]
  • Meta will pay its share of the infrastructure costs, a cost-allocation condition tied to the project’s approval.[4]

What to Watch

  • Department of Revenue and Uniform Local Sales Tax Board implementation rules for the Act 730 rebate program — these will define how rebates are administered in practice.
  • Final LPSC rule text for the large-load fast-track process, including any additional eligibility conditions or timelines beyond the December 2025 vote.
  • Parish-level zoning or moratoria in data center hotspots like Richland Parish and West Feliciana Parish as local governments respond to the buildout.

Sources

[1] Louisiana State Legislature, “Act 730 (HB 827) - Enrolled Act,” 2024 Regular Session, https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1387051 (accessed January 8, 2026).

[2] Louisiana Public Service Commission, “Order No. R-36263, Docket No. R-36263: Consideration of Whether the Commission Should Adopt Minimum Physical Capacity Threshold Requirements for Load Serving Entities,” decided June 19, 2024, https://lpscpubvalence.lpsc.louisiana.gov/portal/PSC/ViewFile?fileId=IwpiOd5Si7Y%3d (accessed January 8, 2026).

[3] WBRZ, “Louisiana Public Service Commission passes proposal allowing data centers to come online more quickly,” December 17, 2025, https://www.wbrz.com/news/louisiana-public-service-commission-passes-proposal-allowing-data-centers-to-come-online-more-quickly/ (accessed January 8, 2026).

[4] Entergy Louisiana, “Entergy Louisiana receives LPSC approval for major infrastructure investments to support Meta’s data center and improve reliability,” August 20, 2025, https://www.entergy.com/news/entergy-louisiana-receives-lpsc-approval-for-major-infrastructure-investments-to-support-metas-data-center-and-improve-reliability (accessed January 8, 2026).