State Specific Tax Incentives

Louisiana

In addition to the incentives available for projects planned for the Gulf Opportunity Zone or the Renewal Communities in Louisiana, there are also other state incentive programs. Available programs include:

Louisiana Enterprise Zone Program Provides tax credits and rebates including a $2,500 tax credit for each net new permanent job created during the first five years of operation and a rebate of the state's 4% sales/use tax on the materials, machinery, and equipment purchased during the construction period and used exclusively on site.

Quality Jobs Program Rebates up to six percent (6%) of a qualifying company's gross annual payroll associated with new jobs created by a project for up to 10 years, and may rebate the state's 4% sales/use tax on the materials, machinery, and equipment purchased during the construction period and used exclusively on site. Quality jobs are those jobs that pay at least 1.75 times the federal minimum hourly wage rate, or $9.01 an hour; offer a basic health care plan covering at least 85 percent of the total premium for a full-time employee; and are part of Louisiana's targeted cluster industries.

Industrial Property Tax Exemption Program Abates local property taxes for 10 years on a manufacturer's investment in buildings, machinery, equipment, and other properties that are part of the manufacturing process and remain on the plant site. This exemption applies to all improvements to the land, buildings, machinery, equipment, and any other property that is part of the manufacturing process. Applicants for this incentive are reviewed by the State of Louisiana by the Board of Commerce and Industry. Tax exempt property must remain on the plant site at all times. The land itself is not eligible for tax exemption.

The Governor's Rapid Response Fund Awards from this fund are made at the invitation of the Governor. HB 460 of the 2005 Regular Session made this a permanent $10 million annual fund for making major awards to businesses with economic development projects that can potentially create/retain jobs in Louisiana.

Inventory Tax Program The state of Louisiana may apply an offsetting tax credit to compensate manufacturers, retailers, and distributors for ad valorem taxes paid on inventories. These credits may be applied against State corporate franchise taxes and corporate and personal income taxes. In the event that the local inventory tax credit exceeds aggregate state income and franchise tax liability, a refund may be made by the state in the amount of excess. This tax credit was created to ensure manufacturers, distributors and retailers of no inventory tax liabilities.

Foreign Trade Zones Foreign Trade Zone sites in Calcasieu, East Baton Rouge, West Baton Rouge and Iberville Parishes offer the advantage of duty-free storage, assembly or manufacture of foreign goods. Merchandise entering the U.S. from the zone site is subject to duty and quota. Merchandise exported from the zone site is exempt from all U.S. customs duties. Warehousing facilities as well as industrial property and port sites may be designated as foreign trade zones.

State Specific Tax Incentives
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