Incentives

Economic Incentives for Businesses of All Sizes

Program Name Benefit Eligibility (Not Comprehensive)
Enterprise Zone Tax credit program: provides a one-time $2,500 tax credit per certified net new permanent, full-time job, and either a 4% sales/use tax rebate on qualifying expenses or an investment tax credit equal to 1.5% of capital expenditures, excluding tax-exempted items.
  • This incentive program is open to any Louisiana business (new or existing) not engaged in gaming, residential development, a church, retail business or restaurant with NACIS of either 44, 45 or 722 
  • 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
  • Hire 50% of the net new jobs created from one or more of the certification requirements from these targeted groups:  Residents living in 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 and people unemployable by traditional standards.
Quality Jobs Cash rebate: provides up to 6% rebate on annual payroll expenses for up to 10 years, and either a 4% sales/use tax rebate on capital expenditures or an investment tax credit equal to 1.5% of capital expenditures, excluding tax-exempted items.
  • Must fall within one of the state’s target industries of Bioscience, Manufacturing, Software, Environmental Technology, Food Technology, Advanced Materials or Oil and Gas Field Service

OR

  • Must have at least 50% of annual sales out-of-state and/or in-state customers or buyers if the product or service is resold by the purchaser to an out-of-state customer or buyer or to the federal government

OR

  • Must be located in an area designated by Louisiana Economic Development as a distressed region.
Restoration Tax Abatement Property tax abatement: Provides 100% abatement for up to 10 years for the rehabilitation of an existing structure based on assessed valuation of property prior to beginning of improvements.
  • Must be located in a qualifying district and approved by local governing authority which includes: Economic Development Districts, Downtown Development Districts, Historic Districts, and those listed on the National Register of Historic Places
  • Eligible Expenses include:  Actual building and materials investment, machinery and equipment investment and labor and engineering expenses.

Industrial Tax Exemption

Property tax abatement: provides a 100% property tax abatement for up to 10 years on manufacturer’s qualifying capital investments
  • Businesses must be classified as a manufacturer or related to the manufacturing project in order to receive the benefits of the ITEP program.  ITEP is only available for activities related to manufacturers.
  • The program can be used by manufacturers new to Louisiana and is also available to exiting manufacturers in Louisiana with new investments and miscellaneous capital additions to existing facilities.
Research & Development Tax Credit Tax credit program: provides up to a 40% tax credit for Louisiana businesses (based on employment) that conduct research and development activities in Louisiana
  • Must have incurred research and development expenditures in Louisiana and who can meet certain requirements (where listed).
  • Only research and development conducted in Louisiana will qualify for the Tax Credit Incentive.
  • In order 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.
Sound Recording Investor Tax Credit

Tax credit program: provides a 18% tax credit issued as a rebate on qualified expenditures for sound recording productions.

  • This program incentivizes sound recording, defined as recording of music, poetry or spoken-word performance made in Louisiana and produced in Louisiana in whole or in part.
  • A $15,000 minimum in expenditures is required, with a $5,000 minimum expenditure requirement for Louisiana residents.
Digital Interactive Media and Software Incentive

Tax credit program: provides a 35% refundable tax credit for Louisiana resident labor expenditures and up to a 25% refundable tax credit on qualified production expenditures.

  • Open to all companies producing digital interactive media products or platforms in Louisiana.
  • Excludes largely static Internet sites or software primarily designed for internal use, which are non-qualifying.
  • Only work physically performed in Louisiana and only direct development equipment purchased through Louisiana businesses qualifies for the incentive.
Competitive Projects Payroll Incentive Rebate: provides a payroll rebate of up to 15% in target sectors for up to 10 years and either a 4% sales/use tax rebate on capital expenditures or a facility expense rebate equal to 1.2% of capital expenditures, excluding tax-exempted items.
  • At least 50 percent of the total sales of the business from its Louisiana site or sites are to out-of-state customers or buyers, or to in-state customers or buyers who resell the product or service to an out-of-state customer or buyer for ultimate use, or to the federal government, or any combination.
  • Projects selected to participate in the program must demonstrate net new jobs and payroll within the state and the project is deemed to be competitive in nature.
  • The business offers, or will offer within ninety days of the effective date of qualifying for the incentive rebates, a basic health benefits plan to the individual it employs.  
Musical and Theatrical Production Tax Incentive Tax credit program: provides a tax credit of 18% for musical and theatrical productions and state certified higher education infrastructure projects; additional credits are available for employing Louisiana residents and students in conjunction with state certified musical and theatrical productions.  
  • Open to concert, theatrical and other live performances that originate or debut in the State of Louisiana
  • There is a $100,000 minimum in-state expenditure requirement. 
LED FastStart™ Workforce development program: provides workforce recruitment, screening and training to eligible new and expanding Louisiana companies at no cost.
  • Any manufacturing, digital media, corporate headquarters, warehouse and distribution, research and development or other strategic facility must commit to creating at least 15 jobs
  • Service providers must commit to creating at least 50 jobs
Technology Commercialization Credit and Jobs Program Tax credit program: Provides a refundable tax credit of 28.8% for individuals or businesses that invest in the commercialization of Louisiana technology and a payroll rebate of 4.32% for the creation of new direct jobs.
  • Must commercialize a technology developed in Louisiana
  • Must partner with a Louisiana higher education institute or be a governmental research institution
Motion Picture Investor Tax Credit Tax credit program: provides a tax credit of up to 30% on qualified production expenditures and an additional 10% tax credit for Louisiana resident labor expenditures.
  • Open to all motion picture production companies headquartered and domiciled in Louisiana for the purpose of producing nationally or internationally distributed motion pictures.
  • Total Louisiana expenditures must exceed $300,000, and $50,000 for local Louisiana productions meeting certain qualifications.

Special Incentives For Small Businesses

Program Name Benefit Eligibility (Not Comprehensive)
Small Business Loan and Guaranty Program Loan assistance program: provides up to 75% loan guarantees to facilitate capital accessibility not to exceed $1.5 million. The program's purpose is to provide financial assistance, which will help with the development, expansion and retention of Louisiana's small business.
  • Must be a Louisiana small business (as defined by SBA)
  • Owners or principal stockholders shall be Louisiana residents
  • Must be domiciled in Louisiana
  • For loans of $100,000 or less, there must be one new permanent job or one retained job
  • For loans over $100,000, there must be two new permanent jobs created
Economic Gardening Initiative Informational Services:  Louisiana Economic Development's Economic Gardening Initiative provides Louisiana-based small businesses with the information they need to grow and succeed.
  • Company must have maintained its principal place of business in Louisiana for at least the last two  years
  • The company must have annual revenue between $600,000 and $50,000,000
  • The company must employ at least five but not more than 100 employees
  • The company must deliver products or services to customers outside the company's local market area or demonstrate the capacity to do so
  • The company must be in a target industry such as manufacturing, finance and insurance services, administrative services and emerging industries, as identified by LED (retail stories and restaurants are specifically excluded)
  • The company must be organized for profit to perform a lawful, commercially useful function
Small and Emerging Business Development Program Technical Assistance: provides the managerial and technical assistance training needed to grow and sustain a small business. Provides for developmental assistance, including entrepreneurial training, marketing, computer skills accounting, business planning, and legal and industry-specific assistance. Consideration for bidding on select products or services purchased by state agencies and SEBD Intermediaries provide a free needs assessment and assistance with accessing other program benefits.
  • The program is open to all Louisiana small businesses that meet the following eligibility requirements for both the business and the owner
  • Certification is effective for up to 10 years or until the firm no longer meets the eligibility requirements for the program
Veteran Initiative Certification Program:  designed to help eligible Louisiana Veteran-owned and Service-Connected Disabled-Veteran-owned small businesses gain greater access to purchasing and contracting opportunities that are available at the state government level.  
  • At least 51% of the business must be owned by a veteran
  • The company must have it s principal place of business i n Louisiana
  • The company must have fewer than 50 full-time employees
  • Average annual gross receipts must not exceed $5 million for non construction and $10 million for construction companies
  • The business must be independently owned and operated
  • The business must not be dominant in its professional field
  • Must be owned by persons domiciled in Louisiana
  • Must be owned by and have officers who are U.S.. citizens or legal residents
  • At least 51% of the business must be owned by a Service-Connected Disabled Veteran
Hudson Initiative  Certification program: designed to help eligible Louisiana small businesses gain greater access to purchasing and contracting opportunities that are available at the State governmental level.
  • The company must have it s principal place of business i n Louisiana
  • The company must have fewer than 50 full-time employees
  • Average annual gross receipts must not exceed $5 million for non construction and $10 million for construction companies
  • The business must be independently owned and operated
  • The business is not dominant in its professional field
  • Owned by persons domiciled in Louisiana 
  • Owned by and has officers who are U.S.. citizens or legal residents