Louisiana Economic Development State Business Incentives
Louisiana Economic Development State Business Incentives
 
The State of Louisiana offers several business incentives which are listed below with a brief explanation. For all incentives, an advance notification form and fees must be completed prior to beginning construction, hiring, or purchasing equipment. For more detailed information, these incentives can be found at www.opportunitylouisiana.com or by calling 225.342.5675.
 
Economic Incentives for Businesses of all Sizes
 
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 of 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
 
Sound Recording Investor Tax Credit program: provides a 25% refundable tax credit on qualified expenditures for sound recording productions
Must spend at least $15,000 in Louisiana
 
Research & Development 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)
 
Digital Media Incentive Tax credit program: provides a 35% tax credit for Louisiana resident labor expenditures, and a 25% refundable tax credit on qualified production 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 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
 
Louisiana 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 iinstitute or be a governmental research institution
 
 
Special Incentives for Small Businesses
 
Small Business Loan Program:  Loan assistance program provides up to 75% loan guarantees or state direct loan participations up to 40% 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
 
Micro Loan Program: Loan assistance program provides up to 80% loan guarantee and state direct loan participations up to 50% 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
 
Mentor-Protégé Tax Credit program: provides up to $50,000 in tax credits per year for participating large construction firms that provide technical assistance to protégé construction firms
Must be certified active in SEBD program or registered in the state's Hudson Initiative Program (protégé firm)

   

 

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