Enterprise Zone Program
The Enterprise Zone 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. The benefit provides:
A one time $2,500 job tax credit for each net new job created.
A 4% rebate of 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.
Quality Jobs Program
The Quality Jobs, or QJ, program provides a cash rebate to companies that create well-paid jobs and promote economic development.
- 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.
- Provides a 4% sales/use rebate on capital expenditures or a 1.5% refundable investment tax credit on the total capital investment, excluding tax exempted items.
Industrial Tax Exemption Program
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. The program abates, up to ten years, local property taxes (Ad Valorem) on a manufacturer’s new investment and annual capitalized additions related to the manufacturing site.
Research & Development Program
The Research and Development tax credit encourages existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state. It provides up to a 40% tax credit on qualified research expenditures incurred in Louisiana — with no cap and no minimum requirement.
Louisiana FastStart provides customized employee recruitment, screening, training development and training delivery for eligible, new or expanding companies — at no cost. Based on the company’s immediate and long-term workforce needs, the FastStart team crafts unique programs that ensure high-quality, flexible workers are prepared day one and beyond.
Digital Media 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.
- 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.
Incumbent Worker Training Program
The Incumbent Worker Training Program is designed to benefit business and industry by assisting in the skill development of existing employees through individual, standardized training. Employers are reimbursed for tuition and required textbooks and manual once the training has been completed and proper documentation has been submitted to the Louisiana Workforce Commission.
Louisiana has worked in recent years to shape a tax structure that supports business growth and is steadily rising in national business climate rankings. In 2013, Polina Corporate Real Estate ranked Louisiana #14 overall and in the top 10 in Area Development, Business Facilities and Site Selection. The Small Business & Entrepreneurship Council ranks Louisiana #16 for its low personal income, property and unemployment taxes, relatively low gas and diesel taxes, and having no death tax or individual or corporate AMT.
Detailed information on state taxes can be found through the Department of Revenue at www.revenue.louisiana.gov.
Louisiana Corporation Income and Franchise Taxes
More information at http://www.revenue.louisiana.gov/sections/business/corp.aspx
All corporations and entities taxed as corporations for federal income tax purposes deriving income from Louisiana sources, whether or not they have any net income, must file an income tax return. Corporations will pay tax on net income computed at the following rates:
Four percent on the first $25,000 of net income
Five percent on the next $25,000
Six percent on the next $50,000
Seven percent on the next $100,000
Eight percent on the excess over $200,000
In addition, any corporation organized under the laws of Louisiana, qualified to do business in this state or doing business in this state, exercising or continuing the corporate charter within this state or owning or using any of the corporate capital, plant, or other property in this state in a corporate capacity must file a Louisiana corporation franchise tax return unless specifically exempted under the provisions of R.S. 47:608. The rate of tax is $1.50 for each $1,000 or major fraction thereof up to $300,000 of capital employed in Louisiana, and $3 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana. The initial corporation franchise tax is $10.
More information at http://www.revenue.louisiana.gov/sections/business/withholding.aspx
Every employer who has resident or nonresident employees performing services (except employees exempt from income tax withholding) within Louisiana is required to withhold Louisiana income tax based on the employee’s withholding exemption certificate. Wages of Louisiana residents performing services in other states are subject to withholding of Louisiana income tax if the wages are not subject to withholding of net income tax by the state in which the services are performed.
Sales and Use Tax
More information at http://www.revenue.louisiana.gov/sections/business/sales.aspx
The 4% state general sales tax is payable by users, consumers, lessees, and persons receiving services taxable under the law. A seller or lessor will qualify as a dealer subject to tax collection requirements if they lease, rent, or sell tangible personal property in the state, furnish services in the state that are taxable under the statute, hold property in the state for resale, maintain a business location in the state, operate in the state through full-time or part-time resident or nonresident salesmen or agents, maintain an inventory in the state of tangible personal property for lease or rental, or deliver in a vehicle owned or operated by the seller.
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.
- 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
- Equipment management
- 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
Small Business Loan and Guaranty Program
The Small Business Loan and Guaranty Program facilitates capital accessibility for small businesses by providing loan guarantees to banks and other small business lenders in association with the federal State Small Business Credit Initiative (SSBCI). The program’s purpose is to provide financial assistance, which will help with the development, expansion and retention of Louisiana’s small businesses. The program is administered by Louisiana Economic Development through Louisiana Economic Development Corporation (LEDC).
- Guarantees may range up to 75% of the loan amount, not to exceed $1.5 million.
- Guarantee fee may be waived (determined by risk).
Loan Amount: $5,000 to $1.5 million
Maximum Guarantee: 75%
Minimum Equity Requirement: 15% to 20%
Application Fee: $0
Quick Turnaround for Loans: $500,000 or less
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.
- 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.