TAXES AND INCENTIVES | FEDERAL PROGRAMS | FINANCIAL ASSISTANCE

TAXES AND INCENTIVES
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Industrial Property Tax Exemption Program
Louisiana’s Industrial Property Tax Exemption Program exempts new manufacturing facilities and expansions from state, parish and local property taxes for up to ten years.  Program benefits can be combined with those of other programs, such as the Enterprise Zone or Quality Jobs programs. 

Economic Development Assistance Program (EDAP)
This program, administered by the Louisiana Department of Economic Development provides grants for publicly owned infrastructure to assist industrial or business development projects that promote economic development and that require state assistance.

Restoration Tax Abatement Program
The program provides 10-year property tax abatement on the improvements made to commercial and residential properties in designated downtown development districts, economic development districts and historic districts.   

Sales and Use Tax Exemption  
Louisiana businesses receive an exemption of the 4 percent state sales, use, lease and rental tax on eligible machinery & equipment purchased in the state. The tax will be gradually phased out through 2010. 

Inventory Tax Credit
The Inventory Tax Credit provides a 100 percent refundable tax credit against state corporate income and franchise taxes for inventory taxes paid to political subdivisions. 

Corporate Jobs Tax Credit Program
The Corporate Jobs Tax Credit Program provides credits of up to $225 per new worker.  The credits can be used to satisfy state corporate income taxes and are an alternative option to the benefits of the state’s Industrial Property Tax Exemption program and Enterprise Zone program benefits. 

Research & Development Tax Credit Program
Companies claiming Federal income tax credit for research activities are able to claim credit against state income and corporation franchise taxes up to 20% of the state’s apportioned share of increased R & D expenses or 25% of its apportioned share of federal research credit claimed under 26 USCA §41 (alternative incremental tax credit).

Biotechnology Sales/Use Tax Exemption
Under the plan, equipment classified under the NAICS biotechnology category will be exempt from all state and local sales/use taxes.

Customized Software Tax Phaseout
Customized software developers in Louisiana are exempt from state sales and use taxes (local is optional.)  The tax exemption will be phased beginning with a 25% exemption in July 2002 to June 2003, with an additional 25% over the succeeding 4 years up to June 2005.

Film and Video Production Tax Credits
Louisiana was the 1st state in the U.S. in 2002 to offer sellable tax incentives to the film industry.  Incentive includes:  (a)  25% credit of total amount of the project shot in state; (b)  10% credit on payroll of LA residents; (c)  25% credit of total amount on film infrastructure (studios, sound stages, etc.)  Sellable credit amount averages between 75% - 80% of credit value.

Automotive and Aerospace Industry Tax Credit
The program provides a $5,000 one-time income tax credit per new job for companies that participate in the Enterprise Zone program in the automotive and aerospace industries.

Rural Tax Increment Financing
The Rural TIF Program allows parishes or municipalities with a population of at least 250,000 the ability to offer tax increment financing on sales, use, property, and hotel occupancy taxes.

Cooperative Endeavor Agreements
Allows the use of public funds for cooperative endeavor agreements for economic development projects to be used on privately owned land or buildings, instead of need for public ownership for transaction.

Industry Assistance Program
Financially distressed companies anticipated to close in the state might be eligible for tax relief from the state in order to retain jobs and investment.  Approval by the LA Legislature is required. 

Workforce Development & Training Program
This program provides funding for customized workforce training programs, if all qualifications are met, in order to improve the competitiveness and productivity of Louisiana’s workforce and business community and to assist Louisiana businesses in promoting employment stability.

TAXES AND INCENTIVES | FEDERAL PROGRAMS | FINANCIAL ASSISTANCE

Gulf Opportunity Zone
In the wake of the 2005 hurricanes, the Bush Administration passed a package of incentives for existing and new businesses located in Louisiana’s designated areas.  Although Ascension Parish was not negatively impacted  by the hurricanes companies can benefit from these programs.

• Enhanced Section 179 expensing for small businesses
• Fifty percent bonus depreciation for expansion or new building construction
• Increase in the Rehabilitation Tax Credit to help restore commercial buildings
• Employer-provided housing incentives
• Expansion and extension of the Employee Retention Tax Credit
• Extension of the net operating loss carryback period
• Reduction of demolition and cleanup costs

Community Development Block Grants
Grants to expanding and new companies for infrastructure projects in areas affected by the 2005 hurricanes.

TAXES AND INCENTIVES | FEDERAL PROGRAMS | FINANCIAL ASSISTANCE

Louisiana Economic Development Corporation (LEDC)
The Louisiana Economic Development Corporation (LEDC) was established in July 1988 by an Act of the Legislature.  LEDC serves as the one reviewer and administrator of the Department of Economic Development’s loan, guaranty, and grant programs.  LEDC administers several programs for small Louisiana businesses, ranging from loan guarantees to venture capital.  

Louisiana Project Equity Fund
Louisiana Project Equity Fund is a new financing program created by the Louisiana Economic Development (LED) to assist small businesses in purchasing capital equipment and accompanying inventory and/or technology for enhanced production.  The program is administered by the Louisiana Economic Development Corporation.

Louisiana Public Facilities Authority
The Louisiana Public Facilities Authority is a private publicly funded corporation that administers Industrial Revenue Bonds (IDBs) for businesses expanding or relocating to Louisiana.

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TAXES AND INCENTIVES | FEDERAL PROGRAMS | FINANCIAL ASSISTANCE