Elective 100% State Bonus Depreciation (Act 11, 2025+)
Full Federal + State Expensing
3% Flat Individual · 5.5% Flat Corporate
Franchise Tax Repealed Jan 2026
22–35% Typical Reclassification
Louisiana Building Value into Short-Life Assets
All Commercial Asset Classes
Statewide Louisiana
The Basics
What Cost Segregation Does for Louisiana Property Owners
A cost segregation study identifies building components, HVAC systems, specialty flooring, parking surfaces, interior finishes, exterior lighting, that qualify for accelerated depreciation on 5-, 7-, or 15-year schedules rather than the default 27.5-year (residential rental) or 39-year (commercial) building schedule. Front-loading those deductions increases first-year cash flow and lowers current-year taxable income.
In Louisiana, that effect stacks in a particularly favorable way. Federal side: the One Big Beautiful Bill (OBBBA, P.L. 119-21) permanently restored 100% bonus depreciation for qualified property placed in service after January 19, 2025. Louisiana side: under Louisiana Act 11 of the 2024 3rd Extraordinary Session (effective for tax years beginning on or after January 1, 2025), Louisiana taxpayers can elect a state-level 100% bonus depreciation deduction for qualified property and qualified improvement property. The state-level election is separate from and independent of federal treatment, meaning federal 100% + Louisiana 100% state expensing stack together to deliver Year 1 benefit at both levels. Louisiana’s Corporate Franchise Tax has also been repealed for tax periods beginning on or after January 1, 2026, further simplifying the picture.
Federal + State Expensing Stack
Louisiana’s Tax Landscape: Why Cost Segregation Delivers Full Federal + State Benefit Here
Individual Income Tax
3% flat (effective January 1, 2025, per HB 10 of the 2024 3rd Extraordinary Session, replacing prior graduated 1.85%/3.5%/4.25% brackets). Increased standard deductions ($12,500 single, $25,000 joint).
Corporate Income Tax
5.5% flat on Louisiana taxable net income (effective January 1, 2025, per HB 2, replacing prior graduated 3.5%/5.5%/7.5% brackets). $20,000 corporate standard deduction. Single sales factor apportionment for multi-state corporations.
Corporate Franchise Tax: Repealed
For tax periods beginning on or after January 1, 2026 (HB 3). The 2025 tax year is the final year franchise tax applies.
Bonus Depreciation Conformity
Elective 100% state bonus depreciation. Under Act 11 of the 2024 3rd Extraordinary Session, Louisiana taxpayers can elect to deduct 100% of expenditures for qualified property and qualified improvement property (as defined in IRC §168(k) and §168(e)(6) as in effect on January 1, 2024) in the tax year the property is placed in service. The election is independent of federal treatment.
§179 Expensing
Louisiana allows full expensing of §179 property.
§174 R&E Expenditures
Louisiana allows immediate expensing of research and experimental expenditures at the state level (per Act 11).
Property Tax
~0.55% effective on owner-occupied housing (Tax Foundation 2026), one of the lower rates in the country. A separate lever from income tax.
Sales Tax
5% state rate; combined state and local averages 10.11% (highest in the nation) but doesn’t affect the income-tax lever cost segregation operates on.
§481(a) Catch-Up
For Louisiana properties owned more than a year without a study, an automatic accounting-method change (Form 3115 under Rev. Proc. 2015-13 and its updates) captures all missed depreciation into the current tax year at the federal level, no amended returns required.
Every Commercial Asset Class in Louisiana
Louisiana Property Types Where Cost Segregation Delivers
Petrochemical & Industrial
The Mississippi River petrochemical corridor between Baton Rouge and New Orleans is one of the largest concentrations of petrochemical manufacturing in the world (BASF, Dow, Shell, ExxonMobil, Georgia-Pacific). Refineries, chemical plants, and specialty industrial facilities.
LNG & Energy Infrastructure
Sabine Pass LNG, Calcasieu Pass LNG, Cameron LNG, Plaquemines LNG, Louisiana is the country’s largest LNG export state. LNG terminals, natural gas processing, and energy infrastructure with heavy reclassification content.
Port & Logistics
Port of New Orleans, Port of South Louisiana (largest tonnage port in the Western Hemisphere), Port of Lake Charles. Warehouse, distribution, and specialty port property.
Hospitality & Tourism
New Orleans French Quarter, CBD, and Warehouse District hotels; Cajun country destination hospitality; Baton Rouge business travel. Heavy FF&E in specialty hospitality property.
Healthcare & Medical Office
Ochsner Health, LCMC, Franciscan Missionaries of Our Lady Health System corridors across New Orleans, Baton Rouge, and Lafayette.
Agriculture & Food Processing
Sugar cane processing, rice production, seafood processing, and specialty ag operations across south Louisiana.
Multifamily
New Orleans metro, Baton Rouge (LSU market), Lafayette, and Shreveport multifamily development.
Retail & Mixed-Use
Statewide retail centers and mixed-use developments across New Orleans and Baton Rouge metros.
Gaming & Entertainment
Louisiana’s casino industry (New Orleans, Shreveport-Bossier, Lake Charles) with heavy FF&E and specialty facility content.
Investment Residential
5+ unit properties eligible for cost segregation.
Not sure whether your Louisiana property qualifies? Request a free benefit analysis, we’ll tell you honestly.
Credentialed. Independent. Nationwide
Why The Ambrose Group?
MAI-Certified Appraisers, In-House Engineer
The IRS prefers engineering-based studies over rule-of-thumb estimates. Our in-house engineer conducts the analysis, reviews construction documents, and physically identifies reclassifiable components. Many providers estimate; we don’t.
IRS-Compliant Methodology
Every Ambrose study follows the IRS Cost Segregation Audit Techniques Guide (ATG, Publication 5653).
30+ Years of Nationwide Experience
Headquartered in Texas, serving Louisiana and all 50 states.
Full Audit Support
Every study includes documentation and audit support at no additional charge.
CPA-Ready Reports
We deliver a complete reclassification package your CPA can apply directly, including the depreciation detail your CPA needs to make the Louisiana Act 11 bonus depreciation election.
Single-Property to Multi-State Portfolios
Whether you own one Louisiana commercial building or a portfolio spanning multiple states, we scale the engagement to fit.
Real Numbers
What First-Year Savings Might Look Like in Louisiana
Results depend on property type, cost basis, construction year, and applicable depreciation rates, and we run a free benefit analysis before you commit to a study so you can see projected numbers first.
As a reference point, an Ambrose Group engagement on a $2.9M commercial property delivered $657,692 in first-year depreciation increase and $230,192 in first-year tax savings. In Louisiana specifically, both the federal 100% bonus depreciation and (with the Act 11 election) Louisiana’s 100% state-level bonus depreciation apply, delivering full Year 1 stacking at both levels. At Louisiana’s 3% individual and 5.5% corporate rates, the combined federal + state benefit is substantial.
Get Started
Free Louisiana Cost Segregation Benefit Analysis
Tell us about your Louisiana property, asset type, acquisition or construction cost, when it was placed in service, and we’ll run a free benefit analysis showing projected first-year depreciation and tax savings before you commit to a study.
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Right approach for your property type
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Federal + Louisiana state bonus depreciation election benefit modeled
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Clear read on the study’s projected ROI
Prefer to talk? Call us directly:
(713) 688-7733
The Ambrose Group headquarters, Jersey Village, TX (serving Louisiana and all 50 states).
Request Your Free Analysis
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How It Works, Louisiana & Nationwide
Our Cost Segregation Process
What Clients Say
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Cost Segregation in Louisiana
Frequently Asked Questions
Does Louisiana conform to federal bonus depreciation rules?
Louisiana offers an elective 100% state-level bonus depreciation deduction, independent of federal treatment. Under Act 11 of the 2024 3rd Extraordinary Session (effective for tax years beginning on or after January 1, 2025), Louisiana taxpayers can elect to deduct 100% of expenditures for qualified property and qualified improvement property (as defined in IRC §168(k) and §168(e)(6) as in effect January 1, 2024) in the tax year the property is placed in service. Combined with federal 100% bonus depreciation restored by OBBBA, this delivers full Year 1 stacking at both federal and Louisiana state levels.
How does Louisiana’s flat income tax interact with a cost segregation study?
Louisiana has a flat 3% individual income tax and a flat 5.5% corporate income tax (both effective January 1, 2025). Because Louisiana allows an elective 100% bonus depreciation at the state level, Year 1 federal AND state benefits both apply, one of the more favorable state tax profiles for cost segregation. The Louisiana Corporate Franchise Tax has also been repealed effective January 1, 2026.
What Louisiana commercial property types benefit most from cost segregation?
Baton Rouge–New Orleans petrochemical corridor plants (BASF, Dow, Shell, ExxonMobil), LNG export terminals (Sabine Pass, Calcasieu Pass, Cameron, Plaquemines), New Orleans French Quarter and CBD hospitality, port and logistics operations, and multifamily across New Orleans and Baton Rouge. Petrochemical, LNG, and hospitality typically deliver the strongest results due to heavy specialty equipment and FF&E content.
Can I do a cost segregation study on a Louisiana property I’ve owned for years?
Yes. A §481(a) adjustment via an automatic accounting-method change (Form 3115 under Rev. Proc. 2015-13 and its updates) lets you capture all missed depreciation from prior years into the current tax year without amending past returns. Especially valuable for long-held Louisiana industrial, petrochemical, and hospitality properties.
How do you do a cost segregation study on a Louisiana property when you’re based in Texas?
Cost segregation is governed by federal tax law, so the methodology is identical regardless of state. Our engineer works either through an in-person Louisiana site visit or, for well-documented properties, a virtual site inspection using high-definition video, construction documents, and interactive tools. Both are IRS-compliant. Louisiana’s proximity to our Texas headquarters makes on-site visits particularly efficient.
What construction era of Louisiana property produces the strongest cost segregation outcomes?
Properties placed in service since 1987 are eligible under current IRS guidance, and studies limited to the last 7–10 years tend to deliver the strongest ROI. Louisiana’s LNG export terminal buildout (roughly 2019 onward), New Orleans hospitality reinvestment cycle, and multifamily development have produced substantial newer commercial property in the ideal window.
Does Louisiana’s high sales tax rate affect the cost seg decision?
Not directly. Cost segregation reduces income tax through accelerated depreciation. Louisiana’s combined state and local sales tax rate averages 10.11% (highest in the nation) but operates on a different base than income tax, your CPA models both when planning.
What documentation do you need for a Louisiana cost segregation study?
Purchase or construction cost documentation, a current depreciation schedule from your CPA, construction plans or specs (when available), any prior appraisals, and, for renovation studies, improvement records. To make the Act 11 election, your CPA will need the detailed asset schedule. We provide it as part of the standard deliverable.
Can you handle Louisiana multi-property portfolios?
Yes. We regularly run cost segregation studies across multi-state and Louisiana-only portfolios. Common for petrochemical operators with multiple Gulf Coast facilities, LNG terminal operators with multiple export projects, hospitality operators with multiple New Orleans and Cajun-country properties, and multifamily portfolio owners.
How long does a cost segregation study take on a Louisiana property?
From engagement to CPA-ready report, most studies run 4–8 weeks depending on property complexity, document availability, and site-visit scheduling. Complex petrochemical, LNG, or hospitality facilities can take longer proportional to the specialty-equipment and FF&E cataloging effort.
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We live by our motto: “Everything we do is driven by the relationship, not the transaction”, and we mean it. Whether you have a Louisiana property to evaluate or a multi-state portfolio to review, we’re here to help. Contact our real estate firm.