Louisiana Direct Financial Incentives | Area Development Online

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Louisiana Direct Financial Incentives

Area Development Online Research Desk (Feb/Mar 09)

Enterprise Zone tax credit program:
This program provides $2,500 credit per new job, and rebates 4% sales/use tax on materials, machinery or equipment. Eligibility: Must increase employment by 10 percent within the first 12 months, or add at least five new jobs in the first two years.

Quality Jobs cash rebate:
Provides 5 percent or 6 percent rebate of annual gross payroll for new direct jobs for up to 10 years. Eligibility: Must fall within one of the state’s six target industries -- biotechnology and biomedical; micro-manufacturing; software, internet and telecommunications; environmental technology; food technology; or advanced materials; or have total annual out-of-state sales of at least 50 percent.

Restoration tax abatement:? Property tax abatement: provides five-year abatement for the rehabilitation of an existing structure. Eligibility: Must be located in a qualifying district and approved by local governing authority; taxes based on assessed valuation of property prior to beginning of improvements.

Industrial tax exemption:? Provides abatement for materials used in new manufacturing, for up to 10 years. Eligibility: Applies only to capital investments by Louisiana manufacturers.

Research & Development Tax Credit:? Program provides credit for up to 8 percent of the state’s apportioned share of increased R&D expenses or 25 percent of its apportioned share of federal research. Eligibility: Must encourage efforts to conduct research and development activities in Louisiana; must have received SBIR/STTR or claimed credit under 26 USCA section 41.

Sound Recording Tax Credit:? Provides credit for up to 25 percent of production or infrastructure development. Eligibility: Must spend at least $15,000 in Louisiana.

Digital Media Tax Credit:? Provides credit for up to 20 percent of qualified production expenditures. Eligibility: Must be a digital interactive production in Louisiana.

Motion Picture Industry Development Tax Credit:? Provides credit for up to 25 percent of motion picture production with a potential bonus credit of up to 10 percent on local labor and up to 40 percent for infrastructure development. Eligibility: Must spend at least $300,000 on motion picture production in Louisiana.

Workforce Development and Training Program: ?Provides pre-employment and on-the-job training. Eligibility: Must be new Louisiana company or existing company operating three years or less.

Economic Development Award Program: ?Loan/grant program provides funding for publicly owned infrastructure for industrial or business development projects. Eligibility: Must be a public or quasi-public state entity requesting a minimum of $25,000; must create or retain at least 10 permanent jobs in Louisiana.

Technology Commercialization Credit and Jobs Program:? Tax credit program provides credit for companies that invest in commercialization of Louisiana technology and create new jobs. Eligibility: Technology created by or commercialized at a Louisiana business.

Special Incentives for Small Businesses

Small Business Loan Program:? Provides up to 75 percent guarantee and state participations up to 40 percent for banks that facilitate capital accessibility. Eligibility: Must be a Louisiana small business (as defined by SBA); must have a business plan and a bank willing to fund the loan.

Micro Loan Program:? Provides up to 80 percent guarantee and state participations up to 50 percent for banks that fund loans from $5,000 to $50,000. Eligibility: Must be a Louisiana small business (as defined by SBA).

Contract Loan Program:? Provides participations with banks that fund government contract loans from $5,000 to $1 million for terms of one year or less. Eligibility: Must be a Louisiana small business (as defined by SBA); must have a business plan and a bank willing to fund the loan.

Bonding Assistance Program: ?Provides up to 25 percent guarantee for companies bidding on private or public jobs. Eligibility: Must be certified in Small and Emerging Business Development Program (SEBD); must complete Louisiana Contractors Accreditation Institute or have LED waiver.

Angel Investor Tax Credit:? Provides credit up to 50 percent for individual investors when they invest in certain early stages of wealth-creating businesses. Eligibility: Must have principal business operations in Louisiana; must have Louisiana tax identification number.

Mentor-Protégé Tax Credit:? Provides up to $50,000 per year for participating firms that provide technical assistance to protégé firm. Eligibility: Must be certified active in SEBD program or registered in the state’s Hudson Initiative Program (protégé firm).

Louisiana State Contact:
Louisiana Economic Development
P.O. Box 94185
Baton Rouge, LA 70804-9185
(225) 342-5361

Incentive and tax information is provided to Area Development by each state’s economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.