State Incentives

PROGRAM BENEFITS

The program provides up to a 6% cash rebate on 80% of gross payroll for new direct jobs for up to 10 years. Effective July 1, 2018, the rebate is available on 100% of gross annual payroll. The program provides a state sales/use rebate on capital expenditures or a 1.5% project facility expense rebate on the total capital investment, excluding tax exempted items. The Quality Jobs, or QJ, program provides a cash rebate to companies that create well-paid jobs, promote economic development and create a minimum of five new direct jobs

PROGRAM ELIGIBILITY

These jobs must be full time, (full-time employees — working 30 hours or greater per week)

Provide a basic health benefit plan/health insurance coverage

That which is required to be offered and/or provided shall include coverage for basic hospital care, coverage for physician care and coverage for health care which shall be the same as that provided to executive, administrative or professional employees

Coverage must become effective no later than the first day of the month 90 days after the date of hire

The employer’s contribution must have a value of at least one dollar and twenty-five cents per hour. If you are other than a self-insured company, the value of the plan is the actual cost for the individual coverage. If you are a self-insured company, LED will determine the value. Basic health care benefits do not include dental, vision or life.

MINIMUM WAGE AND HEALTH CARE REQUIREMENTS

The minimum wage requirement for new direct jobs is $14.50 per hour in wages and healthcare benefits

MINIMUM ANNUAL GROSS PAYROLL REQUIREMENTS

If an employer employs:

50 or fewer employees state-wide prior to the start date of the contract, the minimum annual payroll threshold for new direct jobs is $250,000

More than 50 employees statewide prior to the start date of the contract, the minimum annual payroll threshold for new direct jobs is $500,000

If the actual verified annual gross payroll for the employer’s third fiscal year does not show a minimum of five new direct jobs and does not equal or exceed a total annual payroll for new direct jobs of either $500,000 or $250,000, whichever is applicable, the employer will be determined to be ineligible.

More Information

ENTERPRISE ZONE PROGRAM

The Enterprise Zone, or EZ program is a jobs incentive program that provides Louisiana income and franchise tax credits to a new or existing business located in Louisiana creating permanent net new full-time jobs, and hiring at least 50% of those net new jobs from one of four targeted groups.

PROGRAM BENEFITS

Either a one-time $3,500 or $1,000 tax credit for each net new job created.

A rebate of state sales and use taxes paid on qualifying materials, machinery, furniture, and/or equipment purchased or a 1.5% refundable investment tax credit on the total capital investment, excluding tax exempted items. The rebate shall not exceed $100,000 per net new job.

PROGRAM ELIGIBILTY

This incentive program is open to Louisiana businesses (new or existing) that will:

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

RESTORATION TAX ABATEMENT

The Restoration Tax Abatement (RTA) program provides up to ten-year abatement of ad valorem property taxes on the renovations and improvements of existing commercial structures and owner-occupied residences.

PROGRAM BENEFITS

Such projects are eligible for an initial five-year contract with an option for an additional five-year renewal with local governing authority approval.

PROGRAM ELIGIBILITY

Qualifying locations for properties include:

Downtown Development Districts

Historic Districts (includes properties listed on the National Register of Historic Places)

Economic Development Districts* *Different from Enterprise Zones and Economic Development Zones

 Eligible expenses:

Building and materials

Machinery and equipment (only that which becomes an integral part of the structure)

Labor and engineering

 Non-eligible expenses:

Acquisition cost of the structure or land

Movable and personal property

NOTE: Applicable only in downtown Minden, Louisiana

Industrial Tax Exemption

The Louisiana Industrial Ad Valorem Tax Exemption Program (ITEP) is an original state incentive program which offers an attractive tax incentive for manufacturers within the state.

PROGRAM BENEFITS

The program abates local property taxes (Ad Valorem) on a manufacturer’s new investment and annual capitalized additions related to the manufacturing site up to 100% for an initial five years. Terms for renewal of the tax exemption may be included provided that the renewal may be for no more than 5 additional years up to 80% of Ad Valorem Tax Exemption.

PROGRAM ELIGIBILITY

The program can be used by manufacturers new to Louisiana and is also available to existing manufacturers in Louisiana with new investments to existing facilities.

Submit your advance notification and pay online before you start construction, hire, and/or make purchases towards the project’s capital investment.

Freeport Law

Manufacturers bringing raw materials into the state do not pay taxes on them if the goods are held on public property of a port, docks of the common carrier in which they entered the state, or held in public or private storage in their original containers or for raw materials or bulk. Tax exemptions are also allowed for items held for export outside the state and for goods that are in transit through the state interstate commerce, if the point of origin and final destination are both outside of Louisiana and the goods remain in original containers.

Digital Interactive Media and Software Development Program

Louisiana’s Digital Interactive Media and Software Development refundable tax credit the strongest of its kind in the nation is helping innovative digital media and software development companies of all sizes gain a competitive edge.

PROGRAM BENEFITS

Provides a 25.2% tax credit on qualified payroll for in-state labor and 18% for qualified production expenses for expenditures through June 30, 2018, and a 35% tax credit on qualified payroll for in-state labor and 25% for qualified production expenses for expenditures on or after July 1, 2018.

No cap and no minimum requirement.

The tax credit is available for a refund of 100% of its value claimed on Louisiana state tax return OR certified applicants can receive 85% of the value earned as a rebate any time during the year.

PROGRAM ELIGIBILITY

The incentive is open to all companies producing digital interactive media products or platforms in Louisiana. Certain exclusions apply, such as static internet websites 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.

Qualifying development products include:

Digital Media and Games

Web-based and Mobile Applications

Consumer Software

Entertainment Software

Business and Enterprise Software

Interactive Devices and Consoles

Embedded Systems

LIVE PERFORMANCE PRODUCTION PROGRAM

Whether you’re launching a national concert tour or staging a new theatrical production, we’ll help you hit your mark. Louisiana offers a unique tax incentive for musical and theatrical productions and state certified higher education musical or theatrical infrastructure projects.

PROGRAM BENEFITS

Provides a 7.2% tax credit for certified Louisiana expenditures between $100,000 and $300,000.

Provides a 14.4% tax credit for certified Louisiana expenditures between $300,000 and $1,000,000.

Provides an 18% tax credit for certified Louisiana expenditures over $1,000,000.

Provides an additional 7.2% tax credit for payroll expenditures to Louisiana residents.

No cap on production expenditures.

The tax credit is refundable or transferable on a one-time basis.

Additional tax credits are available when employing students enrolled in Louisiana.

PROGRAM ELIGIBILITY

Louisiana’s musical and theatrical production income tax credit program is open to concert, theatrical and other live productions that originate or debut in the State of Louisiana. The musical and theatrical production income tax credit for infrastructure projects is available to state certified higher education musical or theatrical infrastructure projects. There is a $100,000 minimum in-state expenditure requirement.

Qualifying productions include:

Pre-Broadway engagement or remounts

Tour or resident production remounts

Pre-Broadway tryouts

Resident or regional productions

National touring companies producing their first public performance in Louisiana

Concert tours producing their first public performance in Louisiana

Motion Picture Investor Tax Credit

The program is open to all motion picture production companies headquartered and domiciled in Louisiana for the purpose of producing nationally or internationally distributed motion pictures with total Louisiana expenditures exceeding $300,000, and $50,000 for local Louisiana productions meeting certain qualifications.

PROGRAM BENEFITS

Louisiana’s Motion Picture Investor Tax Credit provides motion picture productions up to a 30% transferable tax credit on total qualified in-state production expenditures, including resident and non-resident labor. For productions using in-state labor, Louisiana offers an additional 10% payroll tax credit.

PROGRAM ELIGIBILITY

Qualifying productions include:

Feature-length motion pictures

Television pilots, series or movies of the week

Animated feature films

Animated short films

Webisodes or any other digitally distributed motion picture

Documentaries

Commercials

Non-qualifying productions include:

Televised news

Sporting events

Eligible Production Expenditures (for complete listing click on link below)

Producer fees for services performed in Louisiana

Rentals/purchases of tangible goods from a source within the state and directly used on a state-certified production in Louisiana

Camera rentals

Soundstage rental

Hotel

Small and Emerging Business Development Program (SEBD)

The SEBD Program provides the managerial and technical assistance training needed to grow and sustain a small business.

PROGRAM BENEFITS

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.

SEBD Intermediaries provide a free needs assessment and assistance with accessing other program benefits.

PROGRAM ELIGIBILITY

The program is open to all Louisiana small businesses that meet the following eligibility requirements for both the business and the business owner.

Small and Emerging Business Person

For the purposes of the program, a person who meets all criteria in this section is defined as a Small and Emerging Business Person.

Citizenship – The person is a U.S. citizen or legal resident.

Louisiana Residency – The person has been a Louisiana resident for at least one year.

Net Worth – At least 51 percent of the business is owned and controlled by persons who individually have a net worth of less than $400,000, excluding personal residence, business assets and retirement accounts.

Full-Time Employment – Managing owners who claim Small and Emerging Business Person status must be full-time employees of the applicant firm (20 or more hours per week).

Small and Emerging Business

For the purposes of the program, a business that meets all criteria in this section is defined as a Small and Emerging Business.

Ownership and Control – At least 51 percent of the company is owned and controlled by one or more Small and Emerging Business Persons.

Principal Place of Business – The firm’s principal place of business is Louisiana.

Lawful Function – The company has been organized for profit to perform a lawful, commercially useful function.

Business Net Worth – The business’ net worth does not exceed $1.5 million.

Job Creation – An applicant firm anticipates creating new full-time jobs.

Economic Gardening Initiative

The Gardening Initiative provides Louisiana-based small businesses with the information they need to grow and succeed.

PROGRAM BENEFITS

Through accelerated technical assistance and research, an experienced economic gardening team will provide customized services tailored to your business needs including:

Review of core strategies, including threats and opportunities, business strategy and niche markets.

Business development opportunities through market research and qualified sales leads.

Improved internet presence by increasing your company’s visibility and credibility within the market, and advice on how to best use technology to connect with customers.

PROGRAM ELIGIBILITY

In order to qualify for the Economic Gardening Initiative, a business must meet the criteria described below.

Principal Place of Business – The company must have maintained its principal place of business in Louisiana for at least the last two years.

Annual Revenue – The company must have annual revenue between $600,000 and $50,000,000.

Employees – The company must employ at least five but not more than 100 employees.

Growth – The company must demonstrate growth in annual revenue and/or jobs in two of the last five years.

External Markets – The company must deliver products or services to customers outside the company’s local market area or demonstrate the capacity to do so.

Target Industries – The company must be in a target industry such as manufacturing, finance and insurance services, administrative services and emerging industries, as identified by Louisiana Economic Development (retail stores and restaurants are specifically excluded).

Lawful Function – The company must be organized for profit to perform a lawful, commercially useful function.

Hudson Initiative

Louisiana’s Hudson Initiative is a certification program that is designed to help eligible Louisiana small businesses gain greater access to purchasing and contracting opportunities that are available at the State government level. Business and contact information will be accessible to State purchasing officials and prime contractors looking for subcontractors

PROGRAM BENEFITS

For small purchases of less than $15,000, State agencies can waive the requirement of getting additional quotes if a certified company submits a quote that is reasonable

10% of the total evaluation points can be added to your bid on a Request for Proposal (RFP). Prime contractors who use your business as a subcontractor on a bid for an RFP are also eligible to receive additional percentage points on their bid.

Program Eligibility

Principal Place of Business – The company must have its principal place of business in Louisiana.

Employees – The company has fewer than 50 full-time employees.

Average Annual Gross Receipts – Average annual gross receipts do not exceed $5 million for non-construction and $10 million for construction companies.

Independently Owned and Operated – The business is independently owned and operated

Not Dominant – The business is not dominant in its professional field.

Louisiana Residency– Owned by persons domiciled in Louisiana.

Citizenship – Owned by and has officers who are U.S. citizens or legal residents.

Veteran Initiative

Louisiana’s Veteran Initiative (LAVETBIZ) is a certification program that is 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.

PROGRAM BENEFITS

Your business and contact information will be accessible to state purchasing officials and prime contractors who are looking for subcontractors.

State agencies are encouraged to get quotes from and use qualified, certified companies whenever possible.

For small purchases (less than $15,000), state agencies can waive the required additional quotes if a certified company submits a quote that is reasonable.

10% of the total evaluation points can be added to your bid on a Request for Proposal (RFP).

Prime contractors who use your business as a subcontractor on a bid for an RFP are also eligible to receive additional percentage points on their bid.

PROGRAM ELIGIBILITY

Veteran Ownership – At least 51% of the business must be owned by a veteran

Principal Place of Business – The company must have its principal place of business in Louisiana

Employees – The company must have fewer than 50 full-time employees

Average Annual Gross Receipts – Average annual gross receipts must not exceed $5 million for non-construction and $10 million for construction companies

Independently Owned and Operated – The business must be independently owned and operated

Not Dominant – The business must not be dominant in its professional field

Louisiana Residency – Must be owned by persons domiciled in Louisiana

Citizenship – Must be owned by and have officers who are U.S. citizens or legal residents

Service-Connected Disabled Veteran – This is an additional distinction and must meet all of the requirements above, as well as being at least 51% owned by a Service-Connected Disabled Veteran.

BONDING ASSISTANCE PROGRAM

Louisiana Economic Development’s Bonding Assistance Program provides access to quality bid, payment and performance bonds at reasonable rates from surety companies when bonding capacity is needed on public or private jobs.

PROGRAM BENEFITS

Offers 25% of contract price or $100,000, whichever is less, in bond guarantee to surety

Sureties perform all underwriting and offer competitive rates

LED’s Bond guarantees may mitigate some risk to surety company, leading to a positive underwriting decision.

PROGRAM ELIGIBILITY

The Bonding Assistance Program is open to all certified Small and Emerging Business Development (SEBD) Program

LOUISIANA CONTRACTORS ACCREDITATION INSTITUTE

The Louisiana Contractors Accreditation Institute, a partnership between Louisiana Economic Development, Louisiana Community & Technical College System and the Louisiana State Licensing Board for Contractors offers small and emerging construction businesses critical information about construction management and how to prepare for the General Contractors State Licensing Exam.

PROGRAM BENEFITS

Six-week course, with two-hour sessions twice a week

Taught by industry leaders

Offered via interactive distance learning to multiple locations throughout the State

Topics covered include but are not limited to:

Bid process

Contract management

Estimating

Equipment management

Scheduling

Occupational safety

Risk management

Financial and business management

Bonding and access to capital

Certifications and available resources

Entrepreneurship training

Classes may also include additional information such as working in the energy sector or with coastal restoration

PROGRAM ELIGIBILTY

The Louisiana Contractors Accreditation Institute is open to all who have the intent to start or currently have an established construction based Louisiana business.