 |
|||
|
|
Incentives Louisiana State IncentivesLouisiana Enterprise Zone Program provides tax credits and rebates. The program includes a $2,500 tax credit for each net new permanent job created during the first five years of operation. The credit can be applied to reduce the businesses state corporate income and corporate franchise taxes. Also, the program provides a rebate of the state's 4% sales/use tax on the purchase of materials used in the construction of the business and the purchase of machinery and equipment during the construction period and used exclusively on-site. In addition, local authorities are permitted to rebate any portion of the local sales/use taxes not dedicated to the local school district or the service of bond indebtedness. Industrial Property Tax Exemption Program abates local property taxes on a manufacturer's investment for ten years. The abatement applies to all buildings, machinery and equipment and other property that is part of the manufacturing process and remains on the plant site at all times. Improvements to the land, but not the land itself, are also exempt. The program also allows the same relief of property taxes on miscellaneous capital additions incurred after construction of the plant. Louisiana Inventory Tax Credit Program provides businesses a credit for the inventory taxes paid to the local parish. This credit can be applied against their state corporate income and/or corporate franchise taxes. Any allowable credit which exceeds the corporate income and/or corporate franchise tax liability will be refunded. Quality Jobs Program rebates up to 6% of a qualifying company's gross annual payroll associated with the new direct jobs created by the project for up to ten years. Participation in the Quality Jobs Program is mutually exclusive to participation in Louisiana's Enterprise Zone Program. The Quality Jobs Program also rebates the state sales/use tax on materials purchased for new infrastructure, machinery and equipment purchased during the construction period and used exclusively on site. A portion of the local sales/use tax is available for rebate with a resolution from the local governing authority. Economic Development Award Program is not a tax incentive, but it does provide important benefits for a prospective company. The program provides funds to finance publicly- owned infrastructure for industrial or business development projects. Under this program, a contract will be executed between the Louisiana Department of Economic Development, the sponsoring entity (political subdivision) and the company. Eligible project costs may include, but not be limited to, engineering expenses, site acquisition and preparation, construction expenses, building materials and capital equipment. The portion of total project costs financed by the award may not exceed 50% of all project costs. The award amount shall not exceed 25% of the total funds available to the program during a fiscal year. The EDAP program should be considered as a source of last funding rather than as a source of first funding. Tax Equalization Program is an inducement to attract, retain and encourage the expansion of manufacturing establishments, headquarters and warehousing and distribution establishments to Louisiana, which would not do so in Louisiana due to a higher tax burden. This program is designed to eliminate the tax differential through the equalization of the overall taxes between a Louisiana site and a competing site in another state. The sites under consideration must be valid and viable for the proposed operations. The competing site must offer comparative advantages equal to or greater than the comparative advantages offered at the Louisiana site. The governor must extend a written invitation to the company authorizing the company to submit an application for this program. |
 |
|
| Home | About | News & Events | Image Gallery | Site Map | Directions/Contact Us |