Business Incentives
Summary of Louisiana Tax Incentives
Louisiana Economic Development offers extensive incentives to attract and retain businesses in Louisiana. Below is a summary--for more information, visit www.OpportunityLouisiana.com or call 225.342.5675
Enterprise Zone
Tax credit program: provides a one-time $2,500 tax credit per certified net new job, and either a 4% sales/use tax rebate on capital expenditures or an investment tax credit equal to 1.5% of qualifying expenses • Must increase employment within specified time frame • Must hire 35% of new workers from one of four targeted groups
Quality Jobs
Cash rebate: provides 5% or 6% rebate on annual payroll expenses for up to 10 years, and either a 4% sales/use tax rebate on capital expenditures or an investment tax credit equal to 1.5% of qualifying expenses • Must fall within one of the state’s target industries or • Have total annual out-of-state sales of at least 50%
Restoration Tax Abatement
Property tax abatement: provides five-year 100% abatement for the rehabilitation of an existing structure based on assessed valuation of property prior to beginning improvements • Must be located in a qualifying district and approved by local governing authority • Does not exempt the acquisition cost of the structure Industrial Tax Exemption Property tax abatement: provides a 100% property tax abatement for up to 10 years on manufacturer’s qualifying capital investments • Applies only to capital investments by Louisiana manufacturers • Property must remain on the site at all times
Research & Development Tax Credit
Tax credit program: provides up to a 40% tax credit for Louisiana businesses (based on employment) that conduct research and development activities in Louisiana • Must have incurred federal research and development expenses and/or received SBIR/STTR grant(s)
Sound Recording Investor Tax Credit
Tax credit program: provides a 25% refundable tax credit on qualified expenditures for sound recording productions • Must spend at least $15,000 in Louisiana
Digital Media and Software Incentive
Tax credit program: provides a 25% tax credit on qualified production expenditures and a 35% tax credit for Louisiana resident labor expenditures • Must be a digital interactive media production in Louisiana • Excludes largely static Internet sites and products regulated under the Louisiana Gaming Control Law
Motion Picture Investor Tax Credit
Tax credit program: provides a tax credit of 30% on qualified production expenditures and an additional 5% tax credit for Louisiana resident labor expenditures • Must spend at least $300,000 on motion picture production in Louisiana
Live Performance Tax Credit
Tax credit program: provides a tax credit of up to 35% on qualified production or infrastructure development expenditures; additional credits available for payroll and transportation expenditures • Must spend at least $100,000 on live performance production or infrastructure projects in Louisiana
LED FastStart™
Workforce development program: provides workforce recruitment, screening and training to new and expanding Louisiana companies at no cost • Any manufacturing, digital media, corporate headquarters, warehouse and distribution, research and development or other strategic facility must commit to creating at least 15 jobs • Service providers must commit to creating at least 50 jobs
Technology Commercialization Credit and Jobs Program
Tax credit program: provides 40% refundable tax credit on costs related to the commercialization of Louisiana technology and a 6% payroll rebate for the creation of new direct jobs • Must commercialize a technology developed in Louisiana • Must partner with a Louisiana higher education institute or be a governmental research institution
Modernization Tax Credit
Tax credit program: provides a 5% refundable state tax credit for manufacturers modernizing or upgrading existing facilities in Louisiana • Must improve entire facility’s or specific unit’s efficiency by 10% or more or • Facility must be in competition for capital expenditures within a company’s established capital expenditure budget plan
Small Business Loan Program
Loan assistance program: provides up to 75% loan guarantees to facilitate capital accessibility • Must be a Louisiana small business (as defined by SBA) • Must have a business plan and a bank willing to fund the loan
Microloan Program
Loan assistance program: provides up to 80% loan guarantee for banks that fund loans of $5,000 to $50,000 to small businesses • Must be a Louisiana small business (as defined by SBA)
Bonding Assistance Program
Loan assistance program: provides up to 25% loan guarantee for qualifying small contractors bidding on private or public jobs • Must be certified in Small and Emerging Business Development Program • Must complete Louisiana Contractors Accreditation Institute or have LED waiver
Veteran Initiative
Provides veteran-owned and disabled, service-oriented veteran-owned small businesses with greater potential for access to state procurement and public contract opportunities • Must be a veteran or disabled, service-oriented veteran • Must be certified by LED, a Louisiana resident and have fewer than 50 full-time employees
Angel Investor Tax Credit
Tax credit program: provides credit up to 35% for individual investors when they invest in early stage, wealth-creating businesses • Must have principal business operations in Louisiana • Must have Louisiana tax identification number