Business Incentives
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Guide to Federal and Louisiana State Incentives: New Markets Tax Credit (Federal Incentive) Industrial Property Tax Exemption
Enterprise Zone Tax Equalization Program
Quality Jobs Research & Development Tax Credit
Restoration Tax Abatement Mentor-Protégé Tax Credit
Digital Interactive Media/Motion Picture/ Technology Commercialization Credit and Jobs Program
Sound Recording Tax Credits
New Markets Tax Credit - Exists to create investment into urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs
- The program allows individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in Community Development Entities (CDEs)
- Investors in qualified projects can obtain a tax credit of five or six percent of the amount invested for each year the investment is held, for up to seven years of the credit period
A number of Louisiana's incentive programs require an Advance Notification form and fee be submitted to Louisiana Economic Development (LED) prior to beginning construction, installation, hiring or purchasing equipment. If you fail to submit this Advanced Notification, you will not be eligible to participate in the program(s). To find out more about the requirements, please click here.
Electronically file your Advanced Notification by registering with Fast Lane administered by LED. Enterprise Zone Qualifying businesses are eligible for a one-time tax credit of $2,500 ($5,000 for SIC 3720 aircraft & parts or 3760 guided missiles & space vehicles & parts, or NAICS 3363) for each net new permanent job created during the first five years of the project. Businesses do not have to be located in and employees do not have to reside in Enterprise Zones to qualify. Tax credit may be used to satisfy state income tax or state franchise tax obligations. Provides for a 4 percent sales tax rebate on taxable expenditures such as building materials, funiture, equipment, and fixtures or a 1.5% refundable Investment tax credit.
Quality Jobs Program Provides up to a 6% cash rebate of annual gross payroll for new direct jobs for up to 10 years. Allows for 4% sales/use tax rebate on capital expenditures.
OR An investment tax credit equal to 1.5% of qualifying expenses.
Restoration Tax Abatement Commercial property owners and homeowners who expand, restore, improve, or develop an existing structure in a qualifying district are eligible The program grants a five-year deferred assessment of the ad valorem property taxes assessed on renovations and improvements with an option for a second five-year exemption
Digital Interactive Media/Motion Picture/Live Performance/Sound Recording Tax Credits Provides a tax credit for investors that is calculated as a percentage of the total base investment dollars certified per production project Allows an additional labor tax credit based on payroll amount for each LA resident employed in connection with the production Investors in this industry are also able to transfer these earned credits for a percentage of the face value of the credits
Industrial Property Tax Exemption New and expanding manufacturing operations or expansions are eligible for exemption of property taxes on new construction or additions to existing buildings; the purchase of permanently fixed equipment and machinery is also included A business can take advantage of this program for a period of five years; there is a provision for the granting of a second five-year exemption
Tax Equalization Program Eligibility includes new and expanding manufacturing establishments, headquarters, warehousing, and distribution facilities The program equalizes the overall taxes between a Louisiana site and a competing site in another state
Research & Development Tax Credit Allows existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state Companies claiming Federal income tax credit for research activities may claim 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 Sec. 41 (alternative incremental tax credit) Additional one-time tax credits may also be awarded to taxpayers who receive Small Business Innovation Research Grants in an amount equal to 8% of the award
Mentor-Protégé Tax Credit Provides up to $50,000 in tax credits for Louisiana-based contractors who provide competitive technical assistance to protégé construction firms. The mentor may be granted the refundable credit on any income or corporation franchise tax liability owed to the state by the mentor.
Technology Commercialization Credit and Jobs Program Provides a 40% refundable tax credit for companies that invest in the commercialization of Louisiana technology. Allows for a 6% payroll rebate for the creation of new, direct jobs.
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