TTT Reporting
Dec 11, 2023
Recently, a Louisiana state panel approved an $80 million dollar tax break for a Japanese based company to construct a new facility that manufactures chemical solvents for electric vehicle batteries. The company, UBE Corp., has plans to build this new facility inside the Cornerstone Chemical Complex located on the west bank of the Mississippi River in Waggaman located in Jefferson Parish.
UBE Corp. applied for an $8 million first-year property tax break under the Louisiana state Industrial Tax Exemption Program (ITEP). The Louisiana Board of Commerce and Industry later approved this application with very little debate. This will allow UBE to claim this exemption each year for a maximum of ten years. According to Louisiana Economic Development records, this would bring the total estimated tax break to roughly $80.8 million.
The company promised that this new facility would create nine full-time jobs to boost Louisiana’s economy as well as nearly 300 temporary jobs during the construction phase. The annual salary for the full-time positions are expected to be around $55,000. UBE’s ITEP application will still need to be approved by Jefferson Parish officials including the parish council, the school board and the sheriff.
The Jefferson Parish Council was expected to vote on Tuesday regarding a different ITEP application sent in by a Texas-based company that wanted to build a fertilizer plant in the same location in Waggaman. However, after immense public push back over false job promises, they withdrew their request.
The Board of Commerce will consider UBE’s ITEP application approved if none of the Jefferson Parish officials deny the application or if they fail to act on it. If approved, UBE has planned to begin construction as early as August 2024 with an expected completion by July 2026.