Louisiana Business Incentives
The State of Louisiana offers several business incentives which are listed below with a brief explanation. A number of these programs require an Advanced Notification form and fee be submitted to Louisiana Economic Development (LED) prior to any construction, renovations, purchases, hiring of employees, etc. Failure to submit this Advanced Notification nulls your eligibilty to participate in those programs. To find out more about the requirements, please Click Here. Electronically file your Advanced Notification by registering with FastLane. For more detailed information, these incentives can be found at www.louisianaforward.com or by calling (225) 342-5675.
Economic Incentives for Any Business
Enterprise Zone Tax Credit Program: a JOBS incentive program that provides Louisiana Income and Franchise tax credits to a business hiring a minimum number of net new employees. 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: promotes economic development by encouraging businesses to create well-paid jobs. 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: 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: encourages existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state. 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 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 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 Program: provides a tax credit of up to 25% 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.
Economic Development Award Program Loan/Grant Program: provides funding for publicly owned infrastructure in support of business development projects. 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
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 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.
Special Incentives Exclusive to 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)