la
incentives
LOUISIANA BUSINESS INCENTIVES |
QUALITY
JOBS PROGRAM
Louisiana's Quality Jobs Program grants businesses engaged
in manufacturing or other basic industries cash rebates
up to 6% of annual gross payroll. Qualifying companies
must have a minimum annual payroll of $500,000 ($250,000
for less than 50 employees), pay wages of 1.75 the minimum
wage, and provide 85% insurance coverage. The program
can be used in conjunction with the Industrial Property
Tax Exemption Program. |
INDUSTRIAL
PROPERTY TAX EXEMPTION PROGRAM
Louisiana's Industrial Property Tax Exemption Program
exempts new manufacturing facilities and expansions from
state, parish and local property taxes for up to ten years.
Program benefits can be combined with those of other programs,
such as the Enterprise Zone or Quality Jobs programs.
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ENTERPRISE
ZONE PROGRAM
Louisiana's Enterprise Zone Program provides tax credits
and other incentives to businesses hiring from within
officially designated Enterprise Zones. EZs are urban
or rural areas of high unemployment, low income, and/or
where a large number of residents are receiving some form
of public assistance. |
ECONOMIC
DEVELOPMENT ASSISTANCE PROGRAM (EDAP)
This program, administered by the Louisiana Department
of Economic Development provides grants for publicly owned
infrastructure to assist industrial or business development
projects that promote economic development and that require
state assistance. |
WORKFORCE
DEVELOPMENT AND TRAINING PROGRAM
This program provides funding for customized workforce
training in order to improve the competitiveness and productivity
of Louisiana's workforce and business community and to
assist Louisiana businesses in promoting employment stability.
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RESTORATION
TAX ABATEMENT PROGRAM
The program provides 10-year property tax abatement on
the improvements made to commercial and residential properties
in designated downtown development districts, economic
development districts and historic districts. |
Most
of Louisiana's tax credit programs are administered by
the
Louisiana
Department of Revenue.
A booklet outlining the eligibility requirements and forms
is available on-line. |
SALES
AND USE TAX EXEMPTION
Louisiana businesses receive an exemption of the
4 percent state sales, use, lease and rental tax on eligible
machinery & equipment purchased in the state. The
tax will be phased out by 2009. |
INVENTORY
TAX CREDIT
The Inventory Tax Credit provides a 100 percent refundable
tax credit against state corporate income and franchise
taxes for inventory taxes paid to political subdivisions.
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CORPORATE
JOBS TAX CREDIT PROGRAM
The Corporate Jobs Tax Credit Program provides credits
of up to $225 per new worker. The credits can be used
to satisfy state corporate income taxes and are an alternative
option to the benefits of the state's Industrial Property
Tax Exemption program and Enterprise Zone program benefits.
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RESEARCH
AND DEVELOPMENT TAX CREDIT PROGRAM
Companies claiming Federal income tax credit for research
activities are able to claim credit against state income
and corporation franchise taxes up to 8% of the state's
apportioned share of increased R & D expenses or 25%
of its apportioned share of federal research credit claimed
under 26 USCA §41 (alternative incremental tax credit).
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BIOTECHNOLOGY
SALES/USE TAX EXEMPTION
Under the plan, equipment classified under the NAICS biotechnology
category will be exempt from all state and local sales/use
taxes. |
CUSTOMIZED
SOFTWARE TAX PHASE-OUT
Customized software developers in Louisiana are exempt
from state sales and use taxes (local is optional). |
FILM
AND VIDEO PRODUCTION TAX CREDIT
Louisiana was the 1st state in the U.S. in 2002 to offer
sellable tax incentives to the film industry. Incentive
includes: (a) 25% credit of total amount of the project
shot in state; (b) 10% credit on payroll of LA residents;
(c) 25% credit of total amount on film infrastructure
(studios, sound stages, etc.) Sellable credit amount averages
between 75% - 80% of credit value. |
AUTOMOTIVE
AND AEROSPACE INDUSTRY TAX CREDIT
The program provides a $5,000 one-time income tax credit
per new job for companies that participate in the Enterprise
Zone program in the automotive and aerospace industries.
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RURAL
TAX INCREMENT FINANCING
The Rural TIF Program allows parishes or municipalities
with a population of at least 250,000 the ability to offer
tax increment financing on sales, use, property, and hotel
occupancy taxes. |
COOPERATIVE
ENDEAVOR AGREEMENTS
Allows the use of public funds for cooperative endeavor
agreements for economic development projects to be used
on privately owned land or buildings, instead of need
for public ownership for transaction. |
TAX
EQUALIZATION
The state of Louisiana will match the tax rates of a competing
state if necessary to retain a business in the state.
Approval by the LA Legislature is required. |
INDUSTRY
ASSISTANCE PROGRAM
Financially distressed companies anticipated to close
in the state might be eligible for tax relief from the
state in order to retain jobs and investment. Approval
by the LA Legislature is required. |
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