Incentives

FEDERAL INCENTIVES

OPPORTUNITY ZONES

This new federal capital gains tax incentive community development program, established by Congress in the Tax Cuts and Jobs Act of 2017, is designed to drive long-term investments to low-income communities. The new law provides a federal tax incentive for investors to re-invest their capital gains into Opportunity Funds, which are specialized vehicles dedicated to investing in designated low-income areas.

There are 150 census tracts in Louisiana that are qualified opportunity zones. These low-income tracts were nominated by Gov. John Bel Edwards and certified by the Secretary of the Treasury.

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LOUISIANA BUSINESS INCENTIVES

QUALITY JOBS PROGRAM

Provides up to 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.

INDUSTRIAL AD VALOREM TAX EXEMPTION PROGRAM (ITEP)

Provides 100% local property tax abatement for up to five years on materials used in new manufacturing and annual capitalized additions related to the manufacturing site and up to an 80% exemption on renewals for an additional three years.

ENTERPRISE ZONE (EZ) PROGRAM

Provides either a $3,500 or $1,000 tax credit for each certified net, new job created and either a 4% sales/use tax rebate on capital expenses or 1.5% investment tax credit for qualifying expenses.

PORT INFRASTRUCTURE TAX CREDIT

Provides private sector investors a credit of up to 100% of their capital expenditures for qualifying projects of $5 million or more at a Louisiana public port.

LOUISIANA FASTSTART

FastStart provides customized employee recruitment, screening, training development and training delivery for eligible, new or expanding companies — all at no cost.

RESTORATION TAX ABATEMENT PROGRAM

Provides an up to ten-year abatement of ad valorem property taxes on renovations and improvements of existing commercial structures and owner-occupied residences.

INVENTORY TAX CREDIT

The Inventory Tax Credit provides a 75% refundable tax credit against state corporate income and franchise taxes for inventory taxes paid to political subdivisions. The remaining 25% is to be carried forward against income and corporation franchise tax for up to five years.

COMPETITIVE PROJECTS PAYROLL INCENTIVE PROGRAM

The Competitive Projects Payroll Incentive (CPPI) Program provides an incentive rebate of up to 15 percent of a participating company’s new payroll for up to 10 years. Additionally, a participating company will be eligible for either a rebate of state sales and use taxes on capital expenditures or a 1.2 percent project facility expense rebate.

RESEARCH AND DEVELOPMENT TAX CREDIT PROGRAM

Provides up to a 40% tax credit on qualified research expenditures incurred in Louisiana — with no cap and no minimum requirement.

TECHNOLOGY COMMERCIALIZATION CREDIT AND JOBS PROGRAM

A refundable tax credit of 28.8 percent for companies that invest in the commercialization of Louisiana technology and a payroll rebate of 4.32 percent for the creation of new direct jobs.

DIGITAL INTERACTIVE MEDIA AND SOFTWARE DEVELOPMENT INCENTIVE

Provides a 25.2% tax credit on qualified payroll for in-state labor and 18% for qualified production expenses for expenditures through June 30, 2018, and a 35% tax credit on qualified payroll for in-state labor and 25% for qualified production expenses for expenditures on or after July 1, 2018.

MOTION PICTURE INVESTOR TAX CREDIT

Provides motion picture productions up to a 30% transferable tax credit on total qualified in-state production expenditures, including resident and non-resident labor. For productions using in-state labor, Louisiana offers an additional 10% payroll tax credit.

COOPERATIVE ENDEAVOR AGREEMENTS

Allows the use of public funds for cooperative endeavor agreements for economic development projects to be used on privately owned land or buildings, instead of need for public ownership for transaction.

TAX EQUALIZATION

The state of Louisiana will match the tax rates of a competing state if necessary to retain a business in the state. Approval by the LA Legislature is required.

INDUSTRY ASSISTANCE PROGRAM

Financially distressed companies anticipated to close in the state might be eligible for tax relief from the state in order to retain jobs and investment. Approval by the LA Legislature is required.

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FOREIGN TRADE ZONE 124

The Port of South Louisiana serves as the grantee of FOREIGN TRADE ZONE #124. In 2022, FTZ #124 facilitated the employment of 5,533 workers. Because of its location, Foreign Trade Zone 124 currently services six parishes (counties) with two more in the application stage and has 12 zones (some of which are designated as Alternative Site Framework sites).

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FINANCIAL ASSISTANCE

LOUISIANA ECONOMIC DEVELOPMENT CORPORATION (LEDC)

The Louisiana Economic Development Corporation (LEDC) was established in July 1988 by an Act of the Legislature. LEDC serves as the one reviewer and administrator of the Department of Economic Development’s loan, guaranty, and grant programs. LEDC administers several programs for small Louisiana businesses, ranging from loan guarantees to venture capital.

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LOUISIANA PUBLIC FACILITIES AUTHORITY

The Louisiana Public Facilities Authority is a private publicly funded corporation that administers Industrial Revenue Bonds (IDBs) for businesses expanding or relocating to Louisiana.