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STATE PROGRAMS

A detailed listing of all incentives can be found here.
Research and Development Tax Credit

Learn more about Research and Development Tax Credits >

  • Administered by the Louisiana Department of Economic Development
  • Intended to encourage existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state
  • Louisiana taxpayers who incur research and development expenses may be able to receive credits against state income and corporate franchise taxes.
    • Taxpayers who employ fewer than 50 Louisiana residents can receive a credit of up to 40% of the apportioned amount of their expenditures.
    • Taxpayers who receive certain federal grants can receive a credit of up to 40% of the receipts received.
    • Taxpayers who claim the federal income tax credit for research activities can receive a credit of up to 20% of their apportioned increase in research activities or 25% of their apportioned federal credit, depending on the number of Louisiana resident employees.
  • Eligibility requirements:
    • Must encourage efforts to conduct research and development activities in Louisiana.
    • Must have incurred R&D expenses with less than 50 Louisiana resident employees.
    • Must have received grant(s) for Small Business Innovation Research (SBIR) and/or Small Business Technology Transfer (STTR).

and/or

    • Must have claimed a federal credit under 26 USC section 41(a) using IRS Form 6765.
Enterprise Zone

Learn more about Enterprise Zones >

  • Provides one-time tax credit of up to $2500 ($5000 if in the aircraft or automobile manufacturing industries) for each net new permanent job created by the businesses expanding or locating in Louisiana. (Credits may be applied to state income tax or corporate franchise tax.). Businesses engaged in gaming, residential development or churches are not eligible.
  • Eligibility requirements for tax credit
    • Create 5 net new jobs within first 24 months or increase current statewide workforce by 10% within first 12 months
    • New jobs must be filled by Louisiana residents
    • Certify that 35% of new employees fulfill at least one of the following criteria
      • lacked basic skills or
      • are physically challenged or
      • were receiving some form of public assistance (such as registered applicants with Job Services) or
      • are residents of an enterprise zone
  • Provides 4% rebate on sales and use taxes during the project/construction period for
    • Building construction materials
    • Machinery and equipment
    • Furniture and fixtures
  • Participation in this program excludes the use of the Louisiana Quality Jobs Program
Louisiana Quality Jobs Program

Learn more about the Louisiana Quality Jobs Program >

  • Provides an annual cash rebate of 5% to 6% of gross annual payroll
  • Provides 4% rebate on sales and use taxes during the construction period for
    • Building construction materials
    • Machinery and equipment
    • Building or renovating facilities
  • Eligibility requirements
    • ¬†must pay a minimum of $9.01 per hour for the 5% rebate or pay $11.59 per hour for the 6% rebate
    • create annual payroll from new direct jobs of not less than $500,000 for employers with more than 50 employees ($250,000 for employers with 50 or less employees) within 3 years of the contract date
    • offer basic health benefit plan to new employees within 90 days of qualifying for the project
  • 5 year participation with an option to renew for 5 additional years
  • Participation in this program excludes the use of the Enterprise Zone Program
Freeport Law
  • Exempts goods and commodities in public/private storage from property tax while moving through Louisiana in interstate commerce
  • Exempts goods imported into Louisiana from outside the U.S. from property tax as long as goods remain in original containers
Inventory Tax Credit
  • 100% tax credit against state corporate income tax and franchise tax for local inventory taxes paid
  • State refund for taxes exceeding state liability
Restoration Tax Abatement

Learn more about Restoration Tax Abatements >

  • Administered by the state
  • 5 year deferred assessment of ad valorem property taxes on improvements, expansions, restorations, or development to commercial structures
  • Eligibility requirements
    • Commercial property owners and homeowners, who expand, restore, improve or develop an existing structure in a qualifying district, Downtown Development District, Economic Development District, or Historic District or if the structure is on the List of Historic Places.
    • Advanced notification to the state required
  • Renewable for additional 5 years, with approval of the state and city
Film and Video Employment/Labor Tax Credit Program
  • Administered by the state
  • Available to production companies that film in Louisiana and hire Louisiana residents
  • Must be filming or producing one or more nationally distributed motion pictures, videos, television series or commercials in Louisiana
  • Tax credit is equal to
    • 10% of the total aggregate payroll for residents when production costs in Louisiana equal or exceed $300,000 but less than $1 million during the taxable year
    • 20% of the total aggregate payroll for residents when production costs in Louisiana equal or exceed $1 million during the taxable year
  • The credit may be applied to any income tax or corporate franchise tax
  • Unused credits may be carried forward up to 10 years
Film and Video Investor Tax Credit Program
  • Administered by the state
  • Available to investor/tax payers that are domiciled in Louisiana
  • Must be producing feature length films, videos, television programs or commercials made in Louisiana, in whole or in part for theatrical or television viewing or as a television pilot
  • Tax credit is equal to
    • 10% of the total base investment when the investment exceeds $300,000 but is less than $8 million
    • 15% of the total base investment when the investment exceeds $8 million
  • The credit may be applied to state income tax
  • Unused credits may be carried forward up to 10 years
Angel Investor Tax Credit Program

Learn more about the Angel Investor Tax Credit >

  • Administered by the Louisiana Department of Economic Development
  • Intended to:
    • To encourage third parties to invest in early stage wealth-creating businesses in the state.
    • To expand the economy of the state by enlarging its base of wealth-creating businesses.
    • To enlarge the number of quality jobs available to retain the presence of young people educated in Louisiana.
  • 35% tax credit on investments made by qualified individuals or entities that invest in a Louisiana entrepreneurial business

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