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Enterprise Zone

The Enterprise Zone (EZ) Program is a job creation incentive program that provides Louisiana Income and Franchise tax credits to a business hiring a minimum number of net new employees. A tax credit of $2,500 per new job is typically awarded.  The Enterprise Zone program also rebates the state sales tax (4%) and local sales tax (5%) on materials purchased for new building, machinery, and equipment.

Inventory Tax Credit Program

The Louisiana Inventory Tax Credit Program provides a credit for the ad valorem taxes paid to local parishes on inventory held by manufacturers.  This credit can be applied against state corporate income or corporate franchise taxes.  The credit is equal to 100% of the ad valorem taxes paid to local parishes.  Any allowable credit which exceeds the corporate income or franchise tax liability is refunded.

Renewal Community Tax Incentives

Wage Credit: Up to $1,500 or 15 percent of an employee's salary up to $10,000 for each employee who lives and works in the renewal community.
Work Opportunity Credit: Up to $2,400 for employees hired from groups that have high unemployment rates or other special employment needs, including youth ages 18 to 24 who live in the renewal community. Other qualified groups include veterans, ex-felons, food stamp recipients, vocational rehabilitation referrals and summer youth.
Welfare to Work Credit: Up to $3,500 for the first year and $5000 for the second year for each new hire of someone on long term family assistance.
Increased Section 179 Deduction: Allows businesses to take a deduction of up to $35,000 on equipment purchases. That lets businesses deduct all or part of the equipment cost the year it is purchased instead of deducting the expense over time.
Commercial Revitalization Deduction: Businesses can elect to treat qualified revitalization expenditures chargeable to a capital account for any qualified revitalization building in either of the following ways:  

Deduct half of the expenditures for the tax year the building is placed in service,

or

Amortize all the expenditures over a 120-month period beginning with the month the building is placed in service.
Electing to take this deduction, disallows taking a depreciation deduction for the same expenditures. 
Claiming this deduction enables the business to recover half (or all) of your qualified revitalization expenditures over a shorter period of time than depreciation.
The commercial revitalization deduction is also allowed for both regular tax and alternative minimum tax purposes. 
Maximum value of incentive $10,000,000.

Environmental Clean up Cost Deduction: Allows businesses looking for land to deduct clean up costs of hazardous substances in qualified areas.

Zero Percent Capital Gains Rate: A business that holds an asset for at least five years does not have to pay taxes on the profit of its sale.

Quality Jobs

An annual rebate for up to ten years of 5% or 6% of gross annual payroll for certain conditions and a rebate of state sales/use tax on materials for building and machinery and equipment purchased during the construction period.

Industrial Tax Exemption Program

A five year property tax exemption renewable for additional five years on capitalized purchases for new and expanding manufacturers.

Freeport Tax

An exemption from property taxes on goods moving through Louisiana if final destination is outside state.

Taxation
Tax Incentives

Louisiana reformed its tax codes, providing a more business-friendly environment and additional incentives for employers creating jobs and economic impact. 

For more detailed information on eligibility, application procedures, and job certification contact:

Louisiana Economic Development, Business Incentive Services,
P. O. Box 94185, Baton Rouge, Louisiana  70802

Phone: 225-342-9228 
Fax: 225-342-0142