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 advocacy and assistance 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.)
NEW MARKETS TAX CREDITS:
This federal incentive allows individuals and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). The investment in the CDE cannot be redeemed before the end of the seven-year period. Learn more
WORK OPPORTUNITY TAX CREDITS
This incentive allows businesses to earn up to $2,400 in federal tax credits for hiring persons in certain targeted groups. Additionally, businesses may earn up to $4,800 for hiring disabled veterans and up to $9,000 over a two year period for hiring long term welfare recipients . Learn more on the U.S. Department of Labor website or the Louisiana Workforce Commission website .
WORKFORCE INVESTMENT ACT – WIA
This program provides funding for local and regional workforce training programs through local Workforce Investment Boards (WIB). Find your local WIB .
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
Companies may claim a federal income tax credit for R & D activities . 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
Rural Development Federal grants and/or programs are available through the USDA for projects located in a USDA Rural zone. Learn more
Louisiana has a variety of 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 .***
LOUISIANA'S QUALITY JOBS PROGRAM
This incentive allows eligible companies to receive a cash rebate of up to 6% of a portion of annual payroll for up to ten years and either a 4% sales/use tax rebate on capital expenditures or a refundable investment tax credit equal to 1.5% of qualifying expenses. A rebate of a portion of local sales/use tax may be available in some areas. Learn more
The Enterprise Zone program allows qualifying businesses to claim either a one-time income tax credit of $3,500 or $1,000 for each certified net new job created and a 4% sales tax rebate on capital expenses or a 1.5% refundable investment tax credit for qualifying expenses . Learn more
*Effective April 1, 2016 the Louisiana Legislature enacted changes to the sales & use tax rebate, the job tax credit and eligibility for the Enterpise Zone program. A summary of those changes can be found here.
Considered the nation's best workforce training program, FastStart offers innovative, customized employee training to companies that create at least 15 new, permanent manufacturing jobs, or at least 50 new, permanent service-related jobs.Learn more
COMPETITIVE PROJECTS PAYROLL INCENTIVE PROGRAM
The Competitive Projects Payroll Incentive Program provides an incentive rebate of up to 15 percent of a participating company's new payroll for up to 10 years. 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 tax credit of 25% of qualified production expenditures for state-certified digital interactive productions in Louisiana and a 35% tax credit for payroll expenditures for Louisiana residents. Learn more
INDUSTRIAL PROPERTY TAX EXEMPTION
This incentive program grants new and expanding manufacturing operations an exemption from local property taxes on new construction, additions to existing buildings, or permanently fixed equipment and machinery purchases. Business can take advantage of this program for a period of 5 years with the option of a second five-year exemption. Learn more
RESTORATION TAX ABATEMENT
This incentive program, administered by the local parish tax assessor, grants a 5-year deferred assessment of the ad valorem property taxes assessed on renovations and improvements with an option for a second 5-year exemption. Commercial property owners and homeowners who expand, restore, improve, or develop an existing structure in a qualifying district are eligible. Learn more