Incentives & Financing

Louisiana Incentives & Financing


Incentive Programs Reduce Your Tax Liability

Businesses in Louisiana have access to a competitive, comprehensive portfolio of state and federal incentives that can make a profound impact on a company’s bottom line. Incentives, such as Enterprise Zone, Quality Jobs, Research & Development Tax Credit, Industrial Tax Exemption and Louisiana FastStart™ are available to help companies compete and succeed.

NLEP can provide information and guidance with applying with statutory or discretionary incentives .  Please contact our business development team for more information. (Qualifying for many of the incentive programs depends on job creation and capital investment.)

Federal Incentives 
State Incentives 
Local Incentives

Federal Incentives

NEW MARKETS TAX CREDITS:

The NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in businesses or economic development projects located in some of the most distressed communities in the nation – census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. Learn more

WORK OPPORTUNITY TAX CREDITS

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. The maximum tax credit ranges from $1,200 to $9,600, depending on the employee hired.Learn more on the U.S. Department of Labor website or the Louisiana Workforce Commission website .

WORKFORCE INNOVATION AND OPPORTUNITY ACT

The new law is structured to focus more on the employment needs of employers and to develop strategies for meeting those needs. At the local level, the local workforce board (WIB) will lead efforts to engage employers, including small employers and employers in in-demand industries. The new law promotes the use of sector (e.g., health care, manufacturing) strategies to form partnerships among key stakeholders in a local area. In addition, WIOA retains business majority membership on both state and local workforce boards to reinforce a demand-driven system. Lastly, it allows greater flexibility for the delivery of training services available to employers by increasing the ability to use on-the-job training, pay-for-performance training contracts and incumbent worker training to meet employers’ needs. Locate your local WIB that offer specific customized workforce incentives for your area. 

FOREIGN TRADE ZONES

Foreign Trade Zones (FTZ) allow delayed or reduced duty payments on foreign merchandise, allowing US companies to engage in value added activities to effectively compete with foreign alternatives. Designated sites are supervised by local U.S. Customs and Border Protection (CBP) officials.  View a list of  Louisiana FTZ .

RESEARCH AND DEVELOPMENT TAX CREDIT

The R&D Tax Credit is not a deduction; it is an actual dollar-for-dollar credit against taxes owed or taxes paid. Additionally, the taxpayer may be able to expense all such qualifying R&D costs in the year incurred.The credit may be combined with Louisiana R & D credits.  Learn more 

SMALL BUSINESS ADMINISTRATION

The Small Business Administration provides a variety of small business assistance programs including loans, business consulting, technical assistance and training. Learn more at local your Louisiana Small Business Development Centers or through the SBA website .

USDA RURAL DEVELOPMENT GRANTS

Business Programs provide financial backing and technical assistance to stimulate business creation and growth. The programs work through partnerships with public and private community based organizations and financial institutions to provide financial assistance, business development, and technical assistance to rural businesses. These programs help to provide capital, equipment, space, job training, and entrepreneurial skills that can help to start and/or grow a business.  Business Programs also support the creation and preservation of quality jobs in rural areas. Learn more  

State Incentives

Louisiana has a robust incentives programs available to both new and existing businesses. 
 
***A number of these programs require an Advanced Notification form and fee to be submitted to Louisiana Economic Development (LED) prior to any construction, renovations, purchases, hiring of employees, and etc. Failure to submit this form may disqualify you from being able to participate in the program(s). This form may be filed electronically by registering with FastLane .***

Statutory Incentives

LOUISIANA'S QUALITY JOBS PROGRAM

The Quality Jobs, or QJ, program provides a cash rebate to companies that create well-paid jobs and promote economic development. The program provides up to a 6% cash rebate on 80% of gross payroll for new direct jobs for up to 10 years. Effective July 1, 2018, the rebate is available on 100% of gross annual payroll. OJ provides a state sales/use rebate on capital expenditures or a 1.5% project facility expense rebate on the total capital investment, excluding tax exempted items. Learn more  

ENTERPRISE ZONE

The Enterprise Zone program is a jobs incentive program that provides Louisiana income and franchise tax credits to a new or existing business located in Louisiana creating permanent net new full-time jobs, and hiring at least 50% of those net new jobs from one of four targeted groups. The benefit provides either a one-time $3,500 or $1,000 tax credit for each net new job created or a rebate of state sales and use taxes paid on qualifying materials, machinery, furniture, and/or equipment purchased or a 1.5% refundable investment tax credit on the total capital investment, excluding tax exempted items. The rebate shall not exceed $100,000 per net new job. Learn more

RESEARCH & DEVELOPMENT TAX CREDIT

This incentive provides to existing businesses with operating facilities in Louisiana a tax credit up to 40% of the expenses necessary to establish or continue research and development activities within the state. Learn more

DIGITAL MEDIA AND SOFTWARE INCENTIVE

This incentive provides a 25% tax credit on qualified payroll for in-state labor and 18% for qualified production expenditures with no cap and no minimum requirements. This tax credit can be applied to state income tax liability and the state will refund any overages or applicants can opt for 85% of the value earned as a rebate any time during the year.  Learn more

ANGEL INVESTOR TAX CREDIT

Louisiana's Angel Investor Tax Credit (AITC) encourages accredited investors to invest in early stage, small wealth-creating Louisiana businesses that seek startup and expansion capital. The incentive provides a 25.2% tax credit on investments by accredited investors who invest in businesses certified by Louisiana Economic Development as Louisiana Entrepreneurial Businesses (LEB) with $3.6 million annual program cap. Investors can invest $720,000 per business per year and $1.44 million per business over the life of the program. The AITC Program sunsets on July 1, 2021. Learn more

Discretionary Incentives

LOUISIANA FASTSTART

Considered the nation's best workforce training program, FastStart offers innovative, customized employee recruitment, screening, training development and training delivery for eligible, new or expanding companies. Learn more 

Local Incentives

INDUSTRIAL PROPERTY TAX EXEMPTION

The Louisiana Industrial Ad Valorem Tax Exemption Program (ITEP) is an incentive program which offers a property tax exemption for manufacturers within the state. With local approval, the program provides up to a 100% property tax abatement for an initial term of up to five years and the option to renew for up to three additional years at up to 80% property tax abatement on a manufacturer’s qualifying capital investment related to the manufacturing process. Learn more 
 

RESTORATION TAX ABATEMENT

The Restoration Tax Abatement (RTA) program provides an up to ten-year abatement of ad valorem property taxes on the renovations and improvements of existing commercial structures and owner-occupied residences. This is a five-year contract with an option for a five-year renewal with local governing authority approval. Learn more

Contact NLEP

North Louisiana Economic Partnership 
 
Regions Tower
333 Texas Street, Suite 411 
Shreveport, LA 71101 
(318)677-2536 
 
1900 North 18th Street, Suite 501 
Monroe, LA 71201 
(318)387-0787 
 
email: feedback@nlep.org