Some of Louisiana’s business investment incentive programs promote particular industries, but others reward all sorts of businesses, large and small, for buying new equipment, adding new employees, or just getting started. The Baton Rouge Area Chamber (brac.org) can help you sort through the state and local programs, and LouisianaEconomicDevelopment.com hosts an interactive tool for evaluating how much various incentives might be worth to a particular company. State and local incentive programs, as described by BRAC, are highlighted below.
Enterprise Zone
Provides a $2,500 credit per new job, and rebates 4% of the sales and use tax on materials, machinery or equipment. Must increase employment by 10% within the first 12 months, or add at least five new jobs in the first two years.
Quality Jobs
Provides a 5% or 6% rebate of annual gross payroll for new direct jobs for up to 10 years. Must increase employment by 10% within the first twelve months or add at least five new jobs in the first two years.
Restoration Tax Abatement
Provides a five-year property tax abatement for the rehabilitation of an existing structure. Must increase employment by 10% within the first 12 months, or add at least five new jobs in the first two years.
Industrial Tax Exemption
Provides a property tax abatement for up to 10 years for materials used in new manufacturing. Must spend at least $15,000 in Louisiana.
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Research & Development Tax Credit
Provides tax credits for up to 8% of the state’s apportioned share of increased R&D expenses or 25% of its apportioned share of federal research. Must encourage efforts to conduct research and development activities in Louisiana, and must have received SBIR/STTR status or claimed credit under 26 USCA section 41.
Sound Recording Investor Tax Credit
Provides credits for up to 25% of production or infrastructure development. Must spend at least $15,000 in Louisiana.
Digital Interactive Tax Credit
Provides tax credits for up to 20% of qualified production expenditures. Must be a digital interactive production in Louisiana.
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Motion Picture Industry Development Tax Credit
Provides credits for up to 25% of the cost of a motion picture production with potential bonus credit of up to 10% on local labor. Must spend at least $300,000 in Louisiana.
Live Performance Tax Credit
Provides credits for up to 25% of production and infrastructure development costs, with additional credits available for payroll and transportation costs. Must spend at least $100,000 on projects in Louisiana.
Workforce Development and Training Program
Provides pre-employment and on-the-job training. Must be a new Louisiana company or existing company operating three years or less.
Economic Development Award Program
This loan/grant program provides funding for publicly owned infrastructure for industrial or business development projects. Must be a public or quasi-public state entity requesting a minimum of $50,000. Project must create or retain at least 10 permanent jobs in Louisiana.
Technology Commercialization Credit and Jobs Program
Provides tax credits for companies that invest in commercialization of Louisiana technology and create new jobs. The technology must be created by or commercialized at a Louisiana business.
Small Business Loan Program
Provides up to 75% loan guarantee and state participations up to 40 percent for banks that facilitate capital accessibility. Must be a Louisiana small business (as defined by the Small Business Administration). Must have a business plan and a bank willing to make the loan.
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Micro Loan Program
Provides up to 80% loan guarantee and state participants for banks that fund loans from $5,000 to $50,000. Must be a Louisiana small business (as defined by SBA).
Contract Loan Program
Loan guarantee program provides participants with banks that fund government contract loans from $5,000 to $1 million for terms of one year or less. Must be a Louisiana small business (as defined by SBA). Must have a business plan and a bank willing to fund the loan.
Bonding Assistance Program
Provides up to 25% guarantee for companies bidding on private or public jobs. Must be certified in Small and Emerging Business Development Program (SEBD). Must complete Louisiana Contractors Accreditation Institute or have an LED waiver.
Angel Investor Tax Credits
Provides credits up to 50% for individual investors when they invest in certain early stages of wealth-creating businesses. Must have principal business operations in Louisiana. Must have Louisiana tax identification number.
Mentor-Protégé Tax Credit
Provides tax credits of up to $50,000 per year for participating firms that provide technical assistance to protégé firm. The protégé firm must be certified active in the SEBD program or registered in the state’s Hudson Initiative Program.
East Baton Rouge Quality Jobs program
Offers local tax abatement for qualifying companies who bring new revenue from payroll into East Baton Rouge. Benefits include tax abatement for up to ten years of parish-wide property taxes associated with the new investment. Business must create 100 or more jobs at wages above the regional industry average or the average regional wage as a whole. Additionally, companies must also finance their startup or expansion using the Industrial Development Bonds.
East Baton Rouge Enterprise Zone
Includes a rebate of local sales taxes on construction materials and equipment for those taxes not already dedicated to the school board or certain infrastructure improvements. Similar to the jobs incentives program provided by the state: however, in order to be eligible, projects must be located within the enterprise zone. Retail businesses also must be located in targeted census tracts. The tax rebates are 1.9%.
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Workforce Investment Board
The Workforce Investment Act rebates up to 50% of a qualifying employee’s salary for up to six months. The WIA training benefit can be used with classroom training or on-the-job training or a hybrid of both for a maximum of 50 percent of a qualified employer’s total workforce.
FastStart
Also, Louisiana FastStart has been named the top worker training program in the nation. The program is free, but is only available to certain companies that commit to creating at least 15 permanent manufacturing jobs or at least 50 service jobs. Companies hoping to use the program are evaluated by LED on a case-by-case basis.
