LAC 7:III.107. Projects Eligible for Loans Funded with LAFA Bond Proceeds

A. Loan proceeds may be used for acquisition, construction, reconstruction, equipping or installation of any property which, under the code, is eligible for a depreciation allowance or chargeable, for federal income tax purposes, to a capital account (or that would be chargeable to a capital account either with a proper election by the borrower or but for a proper election by the borrower), including but not limited to the following. 1. Improvements to real estate such as land clearing, fencing, land forming, land leveling, terracing, wells and water impoundment, subject to an approving opinion of nationally recognized bond counsel. 2. Acquisition of depreciable personal property used in: a. a farmer's or rancher's trade or business, including but not limited to: i. new equipment, such as tractors, combines, plows, rakes, cultivators and related equipment; trucks and pickups; ii. irrigation systems, including center pivot operations and equipment for ditch operations; iii. buildings used to shelter livestock, store equipment, store and preserve grain, such as cribs, bins; and equipment used to dry grain, such as grain dryers and seed cleaners; and iv. breeding stock, such as bulls, heifers, dairy cows, boars and sows; b. an individual's or company's agribusiness, including but not limited to cotton gins, grain elevators, sugar mills and equipment contained therein; meat or crawfish processing plants; and related equipment.