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Parish Profile        Incentives        Education        Quality of Life

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.)



Federal Incentives
 

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  


State Incentives

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 annual payroll expenses for up to ten years and either a 4% sales/use tax rebate on capital expenditures or an 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  

ENTERPRISE ZONE

The Enterprise Zone program allows qualifying businesses to claim a one-time tax credit of $2,500 for each net new permanent job created during the first five years of the project. The incentive also provides a 4% sales tax rebate on taxable expenditures or a 1.5% refundable Investment tax credit . Learn more



LOUISIANA FASTSTART

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


MODERNIZATION TAX CREDIT


This incentive provides a 5% refundable state tax credit for manufacturers making capital investments to modernize or upgrade existing facilities in Louisiana. The proposed modernization must help to improve the entire facility's or specific unit's efficiency by greater than 10%.  Learn more  


ECONOMIC DEVELOPMENT AWARD PROGRAM (EDAP)


This incentive provides funding for publicly owned infrastructure for industrial or business development projects creating or retaining at least 10 permanent jobs and promoting targeted industry economic development. Eligible project costs may include, but are not limited to, engineering and architectural expenses, site acquisition, site preparation, construction expenses, building materials and capital equipment. 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


Local Incentives

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

Incentives and Financing