TAX INCENTIVE PROGRAMS

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|  Enterprise Zone  |  Industrial Property Tax Exemption  |  Quality Jobs Program  |  Restoration Tax Abatement  |

|  Research and Development Tax Credit Program  |  Technology Commercialization Tax Credit  |

|  Mentor Protégé Tax Credit Program |  Digital Interactive Tax Credit  |

|  Motion Picture Industry Development Tax Credit  |  Live Performance Tax Credit  |

| Sound Recording Investor Tax Credit  |  Freeport Law  |  Inventory Tax Credit  |

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Enterprise Zone

(Advanced Notification to the state required) Louisiana's Enterprise Zone Program provides tax credits and sales and use tax refunds to businesses that hire at least 35% of their new employees from one of four targeted groups.  Businesses and their contractors receiving State tax rebates or credits under the EZ program are encouraged to give consideration to Louisiana manufacturers, suppliers, contractors, and labor for their project.  A one-time $2,500 tax credit is generated for each certified net new job created ($5,000 tax credit for net new job for certain automotive or aerospace companies).  An additional $2,500 tax credit may be generated in the second year of employment if the new employee is certified as receiving assistance through the Family Independence Temporary Assistance Program (FITAP).  (Participation in this program excludes the use of the Quality Jobs Program.) Contact: (225) 342-9228, Enterprise Zone

Industrial Property Tax Exemption

(Advanced Notification to the state required)  New and expanding manufacturers 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. As with other business incentives provided by the State of Louisiana, in considering applications for property tax exemptions, the Board of Commerce and Industry requests that the business and its contractors give preference to Louisiana manufacturers, suppliers, contractors, and labor.  Contact: (225) 342-6442, Industrial Property Tax Exemption

Quality Jobs Program

(Advanced Notification to the state required) Louisiana’s Quality Jobs Program provides an annual rebate for up to 10-years of 5% of gross annual payroll for minimum hourly wage rates of $14.50, or 6% of gross annual payroll for minimum hourly wage rates of $19.10. The employer must provide a basic health care plan to the individuals it employs in new direct jobs in this state which shall be determined by LED to have a value of at least one dollar and twenty-five cents per hour.  The program also provides a rebate of state sales/use tax on materials for building materials, machinery and equipment purchased during the construction period and used exclusively on site.  (Participation in this program excludes the use of the Enterprise Zone Program.)  Contact: (225) 342-5402, Quality Jobs

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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 Districts, and Lincoln Parish Economic Development District. Contact your local chamber of commerce, city/town hall, http://lma.org/, or Restoration Abatement                                                           

Research and Development Tax Credit Program

In 2003, a new business benefits program was created by the Legislature providing tax credits for business expenses for increased research activities in any of the recognized economic development targeted industries in Louisiana.  LED is responsible to receive and evaluate applications for these credits and, if approved, to notify the company and the LA Department of Revenue.  The approved tax benefits may be carried forward until consumed but no longer than ten years. Contact: (225) 342-5651, Research and Development Tax Credit Program

Technology Commercialization Tax Credit

Qualifying individuals or businesses that invest in the commercialization of Louisiana technology in Louisiana may be granted a refundable tax credit on any income or corporation franchise tax liability, and earn a refundable tax credit based on new jobs created.  Contact: (225) 342-5651, Technology Commercialization Tax Credit

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Mentor Protégé Tax Credit Program

In an effort to support the entrepreneurial construction industry in Louisiana, the Mentor Protégé Tax Credit Program fosters partnerships between firms, providing a strong backbone for the expanding industry. Through a mentor firm, the program provides emerging construction businesses with technical assistance covering different aspects of the industry. Mentor firms receive tax credits for assisting the protégé firm and benefitting Louisiana's construction industry as a whole. Contact: (225) 342-5882, Mentor Protégé

Digital Interactive Tax Credit

The Digital Interactive Tax Credit program provides a tax credit of up to 20% of qualified production expenditures for state-certified digital interactive productions in Louisiana.  Contact: (225) 342-5403, Digital Interactive Tax Credit

Motion Picture Industry Development Tax Credit

The Motion Picture Industry Development Tax Credit encourages the development of a strong capital base for motion pictures in Louisiana to achieve a more independent and economically sustainable motion picture industry.  Contact: (225) 342-5403, Motion Picture Industry Development Tax Credit

Live Performance Tax Credit

The Office of Live Performance Development offers tax incentives, industry expertise and opportunities for collaboration with Louisiana's top educational institutions to the owners, developers and producers of live performance infrastructure and production projects.  Contact: (225) 342-5521, Live Performance

Sound Recording Investor Tax Credit

The Louisiana Sound Recording Investor Tax Credit is designed to boost record production development by reducing the cost of making new master music recordings, whether distributed by CD, digital download or as part of a soundtrack. The credit also provides 25% tax credit on sound recording infrastructure development.  Contact: (225) 342-5521, Sound Recording

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Freeport Law

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

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) 676-7501.