The Chemical Industry and BASF: Essential to Louisiana
In addition to being essential to the manufacturing of products used by people in their daily lives, Louisiana’s chemical industry greatly supports the state’s economy and the local communities where industry has operated for more than a century.
Louisiana’s chemical industry is the #1 producer of direct jobs in Louisiana’s manufacturing sector and second overall, employing 29,109 people in 2017. In addition, the industry supports 267,601 additional jobs in Louisiana. The job multiplier for this industry is 9.3, meaning for every (1) job created in the chemical industry, an additional 8.3 jobs are created elsewhere in the state.
BASF’s largest manufacturing site in North America is located in Geismar, La. in Ascension Parish. Celebrating 60 years of creating chemistry in Geismar, BASF is the largest private employer in Ascension Parish with approximately 1,600 employees and contract employees on site. At only 25 percent capacity, there is significant opportunity for growth and expansion at the site. Since 2009, BASF invested $800 million in new projects at the Geismar site. In addition, BASF and its employees support more than 40 organizations and nonprofits in the community.
The Industrial Tax Exemption Program (ITEP) is a state incentive program, which offers an attractive tax incentive for manufacturers to build or expand in the state. It is not a subsidy; applicants receive NO money from the government. ITEP is an exemption of a certain amount of property taxes (ONLY) for a specified amount of time. Prior to 2016, Louisiana competed and won many large manufacturing investments from companies around the globe due, in large part, to ITEP. The essential incentive program offsets an otherwise uncompetitive tax system in Louisiana.