Louisiana Direct Financial Incentives 2012
Louisiana's economic development, finance, and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include an enterprise zone, quality jobs, and a restoration tax abatement.
Competitive Projects Payroll Incentive (Act 507)
Louisiana's existing Quality Jobs incentive program provides up to a 6 percent payroll rebate to eligible companies that meet statutory eligibility requirements by creating high-quality jobs in Louisiana. For highly competitive projects, the new Payroll Incentive enables LED to offer a new incentive valued at up to 15 percent of payroll to secure new jobs in target sectors including specific types of durable goods manufacturing (e.g., auto, aerospace, batteries, household appliances, computers), pharmaceutical manufacturing, gas-to-liquids conversion, and data services.
Corporate Headquarters Relocation Program (Act 503)
The new Corporate Headquarters Relocation Program enables LED to offer a 25 percent rebate (over five years) on qualifying facilities and relocation costs in order to secure highly competitive corporate headquarters relocation projects in Louisiana.
Benefit: Tax credit program: provides a one-time $2,500 tax credit per certified net new job, and either a four percent sales/use tax rebate on capital expenditures, or an investment tax credit equal to 1.5 percent of qualifying expenses. Eligibility: Must increase employment within specified time frame, and must hire 35 percent of new workers from one of four targeted groups.
Quality Jobs Program
Benefit: Cash rebate: provides five or six percent rebate on annual payroll expenses for up to 10 years, and either a four percent sales/use tax rebate on capital expenditures, or an investment tax credit equal to 1.5 percent of qualifying expenses. Eligibility: Must fall within one of the state's target industries, or have total annual out-of-state sales of at least 50 percent.
Restoration Tax Abatement
Benefit: Property tax abatement: provides five-year, 100 percent abatement for the rehabilitation of an existing structure based on assessed valuation of property prior to beginning of improvements. Eligibility: 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
Benefit: Property tax abatement: provides a 100 percent property tax abatement for up to 10 years on manufacturer's qualifying capital investments.
Eligibility: Applies only to capital investments by Louisiana manufacturers. Property must remain on the site at all times.
Research & Development Tax Credit
Benefit: Tax credit program: provides up to a 40 percent tax credit for Louisiana businesses (based on employment) that conduct qualified research and development activities in Louisiana.
Eligibility: Must have claimed the federal research and development tax credit, incurred qualified research and development expenditures, and/or received SBIR/STTR grant(s).
Sound Recording Investor Tax Credit
Benefit: Tax credit program: provides a 25 percent refundable tax credit on qualified expenditures for sound recording productions.
Eligibility: Must spend at least $15,000 in Louisiana.
Digital Media and Software Development Tax Credit
Benefit: Tax credit program: provides a 25 percent refundable tax credit on qualified production expenditures and an additional 10 percent tax credit for Louisiana resident labor expenditures.
Eligibility: 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
Benefit: Tax credit program: provides a tax credit of 30 percent on qualified production expenditures and an additional five percent tax credit for Louisiana resident labor expenditures.
Eligibility: Must spend at least $300,000 on motion picture production in Louisiana.
Live Performance Tax Credit
Benefit: Tax credit program: provides a tax credit of up to 25 percent on qualified production or infrastructure development expenditures. Additional credits are available for payroll and transportation expenditures.
Eligibility: Must spend at least $100,000 on live performance production or infrastructure projects in Louisiana.
Benefit: Workforce development program: provides workforce recruitment, screening and training to new and expanding Louisiana companies at no cost.
Eligibility: 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
Benefit: Tax credit program: provides 40 percent refundable tax credit on costs related to the commercialization of Louisiana technology and a six percent payroll rebate for the creation of new direct jobs.
Eligibility: Must commercialize a technology developed in Louisiana. Must partner with a Louisiana higher education or research institution.
Retention and Modernization Program
Benefit: Provides a five percent refundable state tax credit for manufacturers modernizing or upgrading existing facilities in Louisiana.
Eligibility: Must improve entire facility's or specific unit's efficiency by 10 percent or more, or facility must be in competition for capital expenditures within a company's established capital expenditure budget plan.
Economic Development Award Program
Benefit: Loan/grant program: provides funding for publicly owned infrastructure in support of business development projects. Eligibility: Must be a public or quasi-public state entity requesting a minimum of $50,000. Must create or retain at least 10 permanent jobs in Louisiana.
Special Incentives for Small Businesses
Small Business Loan Program
Benefit: Loan assistance program: provides up to 75 percent loan guarantees or state direct loan participations up to 40 percent to 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
Benefit: Loan assistance program: provides up to 80 percent loan guarantee and state direct loan participations up to 50 percent for banks that fund loans of $5,000 to $50,000 to small businesses.
Eligibility: Must be a Louisiana small business (as defined by SBA).
Small and Emerging Business Development Program
Benefit: LED serves in a supportive role to local centers offering new and small businesses the training, technical and managerial assistance they need. Through the Small and Emerging Business Development program, small business owners receive help in enhancing their managerial and technical skills.
Small Business Bonding Assistance Program
Benefit: Bond Guarantee assistance program: provides up to 25 percent guarantee for qualifying small contractors needing bid, performance and or payment bonds from surety companies at reasonable rates.
Eligibility: Must be certified in Small and Emerging Business Development Program. Must complete Louisiana Contractors Accreditation Institute or have LED waiver.
Hudson Initiative-Small Entrepreneurship Certification Program
Benefit: To offer Louisiana-based small businesses more access to contracting and procurement of goods and services with state agencies; signed into law in 2005. Race and gender neutral, this goal-oriented program encourages state agencies and contractors who receive state contracts to use certified Small Entrepreneurships.
Benefit: Provides veteran-owned and disabled, service-oriented veteran-owned small businesses with greater potential for access to state procurement and public contract opportunities.
Eligibility: 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.
Louisiana Contractor Accreditation Institute
Benefit: LCAI, a partnership between LED and Louisiana Community & Technical College System, assists small and emerging construction businesses. Taught by industry leaders, participants will learn about construction management and how to prepare for the General Contractors State Licensing Exam. LCAI is made available statewide through distance learning technology.
The Microenterprise Program
Benefit: Program offers training and development that increases personal and business development skills and creates owner operated Microenterprise businesses with the goal of increasing income and wealth through self employment. Louisiana Economic Development (LED), in conjunction with the Louisiana Department of Social Services, has allocated funds for the Microenterprise Development Program.
Angel Investor Tax Credit
Benefit: Tax credit program: provides a 35 percent tax credit on eligible investments made by investors in Louisiana businesses that can be claimed against the investor's Louisiana income and corporate franchise tax liabilities.
Eligibility: A Louisiana business must be certified by Louisiana Economic Development as a "Louisiana Entrepreneurial Business" and the investor must be accredited. Investors may invest up to $1 million per business per year and $2 million per business over the five year term of the program.
Louisiana State Contact:
Louisiana Economic Development
1051 North Third Street
Baton Rouge, LA 70804
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.