The Enterprise Zone (EZ) Program is a JOBS incentive program that provides Louisiana Income and Franchise tax credits to a business hiring a minimum number of net new employees. Thirty five percent (35%) of these new jobs must be filled from one of four targeted groups. A business does not have to be investing money, just creating additional jobs. A one-time $2,500 Job Tax Credit (JTC) is generated for each certified net new job created. (A business with NAICS for aerospace or an automobile parts manufacturer may qualify for a one-time $5,000 JTC.) JTCs are used to satisfy Louisiana Income and/or Franchise Tax liabilities. LLC and Subchapter S corporations may pass the JTC to the owners listed on the EZ contract. The credits may be carried forward up to 10 years from the year the JTC were earned.  If the company also is investing in new facilities, equipment, and/or machinery, Louisiana Sales/Use Tax paid on qualified materials, furniture, fixtures, machinery and equipment purchased and used exclusively on the EZ approved site, may be reimbursed.  These items must be delivered during the Project/Construction Period. The rebate period cannot to exceed 24 months. In lieu of the 4% state sales tax rebate, the contract holder can opt for a 1.5% Refundable Investment Tax Credit (ITC).   The ITC is a credit equal to 1.5% of capitalized investment (for Federal Income Tax purposes) minus cost of land, interest, existing building acquisition costs, and the portion of manufacturing equipment that is exempt under Sales/Use tax laws.  The credit is earned the year the project is placed in service.  The ITC may not be claimed until the Project Completion Report is executed.   (Participation in this program excludes the use of the Quality Jobs Program.) Contact: (225) 342-9228, http://louisianaforward.com/come-to-louisiana/business-incentives/state-business-incentives/enterprise-zone.aspx

New and expanding manufacturers (as identified by the federal government with NAICS codes that begin with 31, 32 or 33) are eligible to receive five-year property tax exemptions, renewable for an additional five years, on new capitalized purchases. The exemption may include buildings, machinery, equipment, furniture, and fixtures for new, expanded, or renovated facilities.  Tax exempt property must remain on the plant site at all times.  The land itself is not eligible for tax exemption.  Contact: (225) 342-5382, http://louisianaforward.com/come-to-louisiana/business-incentives/state-business-incentives/industrial-tax-exemption-program.aspx

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The Louisiana Quality Jobs Program grants qualifying businesses, engaged in manufacturing or one of specifically listed industries, a refundable tax credit of up to 6% of the company’s payroll for new jobs.  (For companies creating new direct jobs paying at least $14.50 in hourly wages and health care benefits, the an annual rebate for up to10-years will be 5%; for new direct jobs which pay at least $19.10 per hour in wages and health care benefits upon hiring, the benefit rate shall be 6%.)  To qualify for the payroll rebate, the company either increase its workforce by ten percent (10%) in one year or create 5 new jobs within the first 24 months.  Thirty five percent (35%) of these new jobs must be filled from one of four targeted groups. If the company also is investing in new facilities, equipment or machinery, Louisiana Sales/Use Tax paid on qualified materials, furniture, fixtures, machinery and equipment purchased and used exclusively on the approved site may be reimbursed.  In lieu of the 4% state sales tax rebate, the contract holder can opt for a 1.5% Refundable Investment Tax Credit (ITC).  The ITC is a credit equal to 1.5% of capitalized investment (for Federal Income Tax purposes) minus cost of land, interest, existing building acquisition costs, and the portion of manufacturing equipment that is exempt under Sales/Use tax laws.  The credit is earned the year the project is placed in service.  The rebate period can not exceed 30 months.  Contact: (225) 342-5402, http://louisianaforward.com/come-to-louisiana/business-incentives/state-business-incentives/quality-jobs.aspx

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Research and Development Tax Credit Program

(Advanced Notification to the state may be required)

The Research & Development Tax Credit was created to encourage existing Louisiana businesses to establish or continue research and development activities for recognized economic development targeted industries.  Companies claiming Federal income tax credit for research activities may be able to claim against state income and corporation franchise taxes up to 8% of the state’s apportioned share of increased R&D expenses or 25% of its apportioned share of federal research credit claimed under 26 USCA Sec. 41 (alternative incremental tax credit).   Louisiana Economic Development is responsible for receiving and evaluating applications for these credits and, if approved, to notify the company and the LA Department of Revenue.  This program is administered by the LED Board of Commerce & Industry.  Contact: (225) 342-5651, http://louisianaforward.com/come-to-louisiana/business-incentives/state-business-incentives/research--development.aspx

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Angel Investor Tax Credit

The Angel Investor Tax Credit Program Act enhances the Louisiana entrepreneurial business environment by rewarding qualified individual investors for investing in early stage, wealth-creating businesses. Investors can receive refundable Louisiana income or corporation franchise tax credits of up to 50 percent of the money invested. The total angel investor tax credits shall not exceed $5 million. Qualifications for the tax benefits of the Angel Investor Tax Credit require that both the entrepreneurial business and the investor(s) meet specific certification requirements.  For more information, (318) 342-5882, http://louisianaforward.com/come-to-louisiana/community-development-services/business-services/entrepreneurial-services/angel-investor-tax-credit.aspx

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Industry Assistance Program 

(Advanced Notification to the state required)

The Industry Assistance Program provides a tax exemption when manufacturers and their contractors give preference and priority to Louisiana manufacturers or Louisiana suppliers, engineers, contractors and labor, except where not reasonably possible to do so without added expense or substantial inconvenience.  Contact: (225) 342-5651, www.louisianaforward.com/come-to-louisiana/business-incentives/state-business-incentives/industry-assistance-program.aspx

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Film and Video Tax Credit Program
This program provides tax credits to motion picture production companies that film in the state. Contact: Office of Film & Television Development, (504)736-7280,  www.lafilm.org 

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Restoration Tax Abatement
(Advanced Notification to the state required) This program grants a five year deferred assessment of ad valorem property taxes normally assessed for improvements, expansions, restorations or development to commercial structures or owner-occupied residences within these districts. Note: Applicable only in the Natchitoches and Homer Historical Districts, Minden and Springhill Downtown Development District, and Lincoln Parish Economic Development District. Contact: Your local chamber of commerce, http://www.uschamber.com/chambers/directory/default.htm?st=la , or city/town hall, www.lma.org/munisearch.htm  or (318) 342-5402 http://louisianaforward.com/come-to-louisiana/business-incentives/state-business-incentives/restoration-tax-abatement.aspx

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Freeport Law
(Administered by your local Parish Tax Assessor) Louisiana's Freeport Law exempts goods and commodities in public or private storage from property taxes while moving through Louisiana in interstate commerce to a final destination outside the state. Goods must remain in the original containers. Goods imported into Louisiana from outside the United States are likewise exempted from property taxes so long as they remain in their original containers. Contact: www.louisianaassessors.org/Assessors/Assessors.htm

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Inventory Tax Credit
Manufacturers, distributors, and retailers are allowed a 100% credit against state corporate income and franchise taxes in the amount of local inventory taxes they pay. When the amount of the inventory tax exceeds the aggregate state corporate tax liability, a refund is made by the state in the amount of the excess. Contact: Shreveport Office, Louisiana Department of Revenue, (318) 676-7505,
http://www.rev.state.la.us 

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The Coordinating and Development Corp.
5210 Hollywood Avenue, P. O. Box 37005
Shreveport, LA 71133-7005
Phone: (318) 632-2022
Fax/TDD: (318) 632-2099
E-mail: info@cdconline.org

Copyright 2008, The Coordinating and Development Corporation. Redistribution to all others interested in economic development is strongly encouraged. Please cite The Coordinating and Development Corporation whenever portions are reproduced or redirected.

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