Louisiana Spirits, doing business as Bayou Rum, is seeking a tax break from the state to help offset the cost of an expansion project in Jeff Davis Parish, which a company official said will increase production and add jobs.

Stoli Director of Manufacturing and Louisiana Spirits President Angelo Torre said the company is requesting a five-year property tax exemption from the state for future projects, including a $3 million expansion of its bottling line.

The company produces Bayou Rum products at the privately-owned distillery in Lacassine.

Under the rules, the company would receive forgiveness for 80 percent of the local property taxes for five years to offset the cost of the expansion of its manufacturing process to include bottling of Bayou Rum products.

“We are asking for that exemption because of the amount of taxes we will have to pay up front for the equipment and building materials,” Torre said.

The company is requesting an estimated $561,000 property tax break for the first five years of its improvement under the state’s Industrial Tax Exemption Program (ITEP), which provides tax incentives for manufacturers who commit to local jobs and payroll. The company would have an option to renew the exemption for an additional five years, according to Jeff Davis Parish Economic Director Creed Romano.

Torre said the expansion will increase production, which will increase sales taxes for the parish and create more jobs.

“The expansion is expected to increase our capacity of the bottling line from 300 bottles per hour to 3,600 bottles an hour,” Torre said, noting that the facility will continue to pay taxes on the increase of volume of all finished products.

The parish will also continue to receive sales taxes from gift shop sales and local machinery investments over the next five years, despite the property tax exemption.

In addition to the expansion of the bottle line equipment, Torre said the company will also have to increase the capacity of its distillation equipment and expand its warehouse and barrel library where its rum products are “aged.”

There will be a slight increase in jobs with roughly three jobs created by the expansion. He said crews will work on two shifts, rather than three shifts with some of the third shift employees being transferred to the warehouse.

Torre said the company’s total investments over the next few years is expected to be just under $10 million.

Ronnie Petree, of the Jeff Davis Parish Industrial Development Board, said tax incentives like ITEP are vital to bringing new business to the parish to create more jobs and increase local investments. In addition, he said the improvements being made increases the investment and value of Bayou Rum in the parish.

The Jeff Davis Parish Police Jury, Jeff Davis Parish School Board and Jeff Davis Parish Sheriff’s Office must approve the exemption with final approval made by the Louisiana Board of Commerce and Industry and Gov. John Bel Edwards.