The Louisiana Industrial Ad Valorem Tax Exemption Program (ITEP) is an original state incentive program, which offers an attractive tax incentive for manufacturers who make a commitment to jobs and payroll in the state. With approval by the Board of Commerce and Industry and local governmental entities, the program provides an 80% property tax abatement for an initial term of five years and the option to renew for five additional years at 80% property tax abatement on a manufacturer’s qualifying capital investment related to the manufacturing process in the state.

• 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.
• Either a one-time $3,500 or $1,000 tax credit for each net new job created
• A 4% rebate of 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 4% or 1.5% rebate shall not exceed $100,000 per net new job.
• Program is open to Louisiana businesses (new or existing) that will:
• Create a minimum of five permanent net new full-time jobs within 24 months of their project start date or increase their current nationwide workforce by 10% within the first 12 months.
• New jobs must be filled by Louisiana residents.
• Hire 50% of the net new jobs created from one or more of the certification requirements from these targeted groups:
• Residents (Someone living in the Enterprise Zone within the state)
• People receiving an approved form of public assistance
• People lacking basic skills (Performing below a ninth-grade proficiency in reading, writing or mathematics)
• People unemployable by traditional standards

The Enterprise Zone program sunset date has been extended to July 1, 2021.

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 of annual gross payroll for new direct jobs for up to 10 years. Provides a state sales/use tax rebate on capital expenditures or a 1.5% project facility expense rebate on the total capital investment, excluding tax-exempt items.

Who is eligible for the Quality Jobs Program?
Bioscience, Manufacturing, Software, Clean Energy Technology, Food Technology, Advanced Materials, Headquarters of Multi-State Businesses, Aircraft MROs or Oil & Gas Field Service

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.
Five-year contract; option for a five-year renewal with local governing authority approval.

ELIGIBILITY
This incentive is open to all Louisiana businesses and homeowners with existing structures to be expanded, restored, improved or developed in qualifying locations, and as approved by the local governing authority.

If property taxes have been paid on the improvements a business or homeowner is not eligible to apply for the exemption.

Qualifying locations for properties include:

• Downtown Development Districts
• Historic Districts (includes properties listed on the National Register of Historic Places)
• Economic Development Districts*

*Different from Enterprise Zones and Economic Development Zones

ELIGIBLE EXPENSES

• Building and materials
• Machinery and equipment (only that which becomes an integral part of the structure)
• Labor and engineering

NON-ELIGIBLE EXPENSES

• Acquisition cost of the structure or land
• Movable and personal property

For applications received on or after July 1, 2017, Louisiana’s Motion Picture Production Program, statutorily known as Motion Picture Production Tax Credit, provides motion picture productions up to a 40% tax credit on total qualified in-state production expenditures, including resident and non-resident labor.

Provides up to a 40% tax credit (25% base credit; 10% increase for Louisiana screenplay productions, 5% increase if outside of the New Orleans Metro Statistical Area).

• $50,000 minimum in-state expenditure requirement for Louisiana screenplay productions
• $300,000 minimum in-state expenditure requirement on all other eligible productions
• The maximum amount of credits that can be issued is $150 million per fiscal year.
• The maximum amount of credits that can be claimed is $180 million per fiscal year.
• Tax credits may be used to offset personal or corporate income tax liability in Louisiana.
• Tax credits may be transferred back to the State for 90% of face value (requires a 2% transfer fee which results in an 88% net).

The Sound Recording Program, statutorily known as Sound Recording Investor Tax Credit, provides an 18% tax credit for sound recording projects made in the State of Louisiana.

Louisiana also offers some of the world’s finest talent and great recording studios to complement the attractive financial benefits of recording in-state. Sound recording investor tax credits are issued as rebates.

The Sound Recording Investor Program provides:

• A project-based production credit of 18% for eligible production expenditures.
• Program is subject to a cap of $2.16 million per year. Projects are subject to a $100,000 cap, per year.

• Encourages existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state
• Provides up to a 40% tax credit on qualified research expenditures incurred in Louisiana with no cap and no minimum requirement
• For credits to be awarded, a taxpayer must claim the expenditures within one year after December 31 of the year in which the expenditure was incurred.
• For tax years beginning July 1, 2018, the R&D credit is transferable ONLY for the SBIR and STTR participants

For tax years beginning July 1, 2017, the R&D credit rates are as follows:

1. SBIR and STTR: 30%
2. Companies with 0-49 employees: 30% with a 50% base calculation
3. Companies with 50-99 employees: 10% with an 80% base calculation
4. Companies with 100 or more employees: 5% with an 80% base calculation

Whether you’re launching a national concert tour or staging a new theatrical production, we’ll help you hit your mark. Louisiana offers a unique tax incentive for musical and theatrical productions.

• Provides a 7% tax credit for certified Louisiana expenditures between $100,000 and $300,000.
• Provides a 14% tax credit for certified Louisiana expenditures between $300,000 and $1,000,000.
• Provides an 18% tax credit for certified Louisiana expenditures over $1,000,000.
• Provides an additional 7% tax credit for payroll expenditures to Louisiana residents.
• Program is subject to a $10 million cap per year (with 50% or $5 million being reserved for not-for-profit organizations). Projects are subject to a $1 million cap, per year.
• The tax credit is refundable or transferable on a one time basis.

ELIGIBILITY
Louisiana’s musical and theatrical production income tax credit program is open to concert, theatrical and other live productions that originate or debut in the State of Louisiana. There is a $100,000 minimum in-state expenditure requirement.

QUALIFYING PRODUCTIONS INCLUDE:

• Pre-Broadway engagement or remounts
• Tour or resident production remounts
• Pre-Broadway tryouts
• Resident or regional productions
• National touring companies producing their first public performance in Louisiana
• Concert tours producing their first public performance in Louisiana

ELIGIBLE PRODUCTION EXPENDITURES

• Salaries directly related to the development of in-state certified productions (up to the first $1 million per person)
• Physical production costs directly related to an in-state certified production
• Artist compensation directly related to performance days in Louisiana (up to the first $1 million per person)
• Creative team compensation directly related to work performed in Louisiana
• Local and touring crew compensation directly related to work performed in Louisiana (up to the first $1 million per person)
• Hotel and airfare expenditures directly related to an in-state certified production
• Venue rental and associated fixed costs

Louisiana’s Digital Interactive Media and Software Program, statutorily known as Digital Interactive Media and Software Tax Credit (the strongest of its kind in the nation) is helping innovative digital media and software development companies of all sizes gain a competitive edge.

• Provides a 25% tax credit on qualified payroll for in-state labor and 18% for qualified production expenditures.
• No cap and no minimum requirement.
• 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.

• Provides a 25% tax credit on investments by accredited investors who invest in businesses certified by Louisiana Economic Development as Louisiana Entrepreneurial Businesses (LEB)
• Credit limited to $3.6 million cap for program
• Allows investments of $720,000 per business per year and $1.44 million per business over the life of the program
• The program sunsets on July 1, 2021 (no credits granted or reserved after that date).
• Investment in a business will qualify for the tax credit only if the business is domiciled in Louisiana, has less than 50 employees, has annual gross sales of less than $10 million or has a net worth of less than $2 million, has its principal business operations in Louisiana, derives more than 50% of its sales from outside Louisiana, and prior to the investment was approved by the State.
• Businesses engaged primarily in retail sales, real estate, professional services, gaming or gambling, natural resource extraction or exploration, or financial services do not qualify under the program.
• Administered by the State and Department of Economic Development

Permit fees for City Codes and Ordinances will be waived in the Downtown Development Area.

ELIGIBILITY REQUIREMENTS:

• Rehabilitation or renovation of buildings and structures located in the Downtown Development Area
• Buildings and structures must have been constructed prior to 1960.