n 1983 the Louisiana Legislature, by act 445, established the Restoration Abatement Tax Program. The program "is an economic development incentive created for use by municipalities and local governments to encourage the expansion, restoration, improvement, and development of existing commercial structures and owner-occupied residences in Downtown Development Districts, Economic Development Districts, or Historic Districts." It provides for a five-year deferred assessment of the property taxes that normally would be assessed for improvements made to such properties. A five-year extension is also available.

The Louisiana Office of Commerce and Industry grants the tax abatements based on recommendations made by local governing agencies. In New Orleans, the City Council approves individual abatements by resolution. Council action is based on consideration and recommendation of the Office of Economic Development (in the early years of the local program the City Planning Commission was responsible for such considerations).