LA Incentives | Finance, Loans, IRB, Workforce Development

A comprehensive list of Louisiana financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.


https://businessfacilities.com/2015/01/la-incentives-and-workforce-development-guide/
A comprehensive list of Louisiana financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.
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Louisiana Incentives and Workforce Development Guide

LA Incentives | Finance, Loans, IRB, Workforce Development

For a list of Louisiana economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

 

FACILITY INCENTIVES

Competitive Projects Property Tax Exemption: The Competitive Projects Property Tax Exemption provides a 10-year property tax abatement on qualifying capital investments of at least $25 million to targeted, non-manufacturing industry sectors, including corporate headquarters, distribution facilities, data services facilities, research and development operations, and digital media and software development centers. The abatement applies to ad valorem taxes exceeding $10 million or 10% of the fair market value of the property, whichever is greater.

Economic Development Award Program: The purpose of the Economic Development Award Program (EDAP) program is to assist in the financing or funding of Sponsored Projects and/or Unsponsored Projects for which financial assistance is requested in order to promote economic development in the state and provide an incentive to influence a company’s decision to locate, relocate, maintain, rebuild and/or expand its business operations in Louisiana, and/or to increase its capital investment in Louisiana.

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 who make a commitment to jobs and payroll in the state. With approval by the Board of Commerce and Industry and local governmental entities, the program provides an 80% property tax abatement for an initial term of five years and the option to renew for five additional years at 80% property tax abatement on a manufacturer’s qualifying capital investment related to the manufacturing process in the state. Manufacturers who filed Advance Notification after June 24, 2016 and prior to July 1, 2018 have the option of proceeding under the 2017 program rules.

Retention and Modernization Tax Credit: The Modernization Tax Credit program provides a refundable state tax credit for manufacturers making capital investments to modernize or upgrade existing facilities in Louisiana. The purpose of this program is to encourage the retention and modernization of such operations in Louisiana by providing up to a 4% state tax credit for manufacturers modernizing or upgrading existing facilities in Louisiana. The program is capped at $7.2 million per calendar year.

Restoration Tax Abatement: The Restoration Tax Abatement (RTA) program provides an up-to 10-year abatement of property taxes (ad valorem) on renovations and improvements of existing commercial structures and owner-occupied residences located within economic development districts, downtown development districts, historic districts, and opportunity zones.

*Five-year contract; option for five-year renewal with approval from local governing authority, Board of Commerce and Industry, and governor’s approval.

 

PRODUCTION & INVESTOR INCENTIVES

Angel Investor Tax Credit: Louisiana’s Angel Investor Tax Credit (AITC) encourages accredited investors to invest in early stage, small wealth-creating Louisiana businesses that seek startup and expansion capital.

  • Provides a 25% tax credit on investments by accredited investors who invest in businesses certified by Louisiana Economic Development as Louisiana Entrepreneurial Businesses (LEB).
  • $3.6 million annual program cap.
  • Investors can invest $720,000 per business per year and $1.44 million per business over the life of the program.

Digital Interactive Media and Software Development Incentive: Louisiana’s Digital Interactive Media and Software Program, statutorily known as Digital Interactive Media and Software 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% tax credit on qualified payroll for in-state labor and 18% for qualified production expenditures.
  • No cap and no minimum requirement.
  • Tax credit can be applied to state income tax liability and the state will refund any overages OR applicants can opt for 85% of the value earned as a rebate any time during the year.

Motion Picture Investor Tax Credit: For applications received on or after July 1, 2017, Louisiana’s Motion Picture Production Program, statutorily known as Motion Picture Production Tax Credit, provides motion picture productions up to a 40% tax credit on total qualified in-state production expenditures, including resident and non-resident labor.

  • Provides up to a 40% tax credit (25% base credit; 10% increase for Louisiana screenplay productions, 5% increase if outside the New Orleans MSA).
  • $50,000 minimum in-state expenditure requirement for Louisiana screenplay productions.
  • $300,000 minimum in-state expenditure requirement on all other eligible productions.
  • The maximum amount of credits that can be issued is $150 million per fiscal year.
  • The maximum amount of credits that can be claimed is $180 million per fiscal year.
  • Tax credits may be used to offset personal or corporate income tax liability in Louisiana.
  • Tax credits may be transferred back to the State for 90% of face value (requires a 2% transfer fee which results in an 88% net).

Musical and Theatrical Production Performance Tax Credit: Whether you’re launching a national concert tour or staging a new theatrical production, the Live Performance Production Program, statutorily known as the Musical and Theatrical Production Income Tax Credit, will help you hit your mark. Louisiana offers a unique tax incentive for musical and theatrical productions.

  • Provides a 7% tax credit for certified Louisiana expenditures between $100,000 and $300,000.
  • Provides a 14% 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% tax credit for payroll expenditures to Louisiana residents.
  • Program is subject to a $10 million cap per year (with 50% or $5 million being reserved for not-for-profits). Projects are subject to a $1 million cap per year.
  • The tax credit is refundable or transferable on a one-time basis.

Qualified Entertainment Company: The Entertainment Job Creation Program provides a tax credit on annual W2 wages to approved entertainment companies (known as a Qualified Entertainment Company or “QEC”) that create well-paid jobs for Louisiana residents.

  • The program provides a 15% credit for each new job whose QEC payroll is equal to or greater than $45,000 per year, up to $66,000 per year
  • Provides a 20% credit for each new job whose QEC payroll is equal to or greater than $66,000 per year, but no greater than $200,000 per year

Program Statutes & Rules: *La. R.S. 47:6007, better known as the Louisiana Motion Picture Production Program, also provides a QEC payroll tax credit on annual W2 wages for approved entertainment companies and this incentive is commonly referred to here as the Entertainment Job Creation Program. All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register. View Act 223 and Act 309.

Qualified Music Company: The Music Job Creation Program provides a tax credit on annual W2 wages to music industry related companies (known as a Qualified Music Company or “QMC”) that create well-paid jobs for Louisiana residents.

  • The program provides a 10% credit for each new job whose QMC payroll is equal to or greater than $35,000 per year, up to $66,000 per year; and
  • Provides a 15% credit for each new job whose QMC payroll is equal to or greater than $66,000 per year, but no greater than $200,000 per year

Program Statutes & Rules: *La. R.S. 47:6023, better known as the Louisiana Sound Recording Production Program, also provides a QMC payroll tax credit on annual W2 wages for approved music industry companies, and this incentive is commonly referred to here as the Music Job Creation Program. All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register.

Research and Development Tax Credit: 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.

  • Provides up to a 30% tax credit on qualified research expenditures incurred in Louisiana — with no cap and no minimum requirement.

Sound Recording Investor Tax Credit: The Sound Recording Program, statutorily known as Sound Recording Investor Tax Credit, provides an 18% tax credit for sound recording projects made in the State of Louisiana. Louisiana also offers some of the world’s finest talent and great recording studios to complement the attractive financial benefits of recording in state. Sound recording investor tax credits are issued as rebates. The program provides:

  • A project-based production credit of 18% for eligible production expenditures.
  • Program is subject to a cap of $2.16 million per year. Projects are subject to a $100,000 cap per year.

 

SMALL BUSINESS PROGRAMS

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.

  • 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.

CEO Roundtables: Louisiana Economic Development’s CEO Roundtables bring together groups of 15 to 18 key decision-makers from Louisiana-based small businesses 10 times over the course of a year for collaborative, growth-oriented roundtable sessions that support a trusting environment in which CEOs can safely explore business and personal issues with the guidance of experienced facilitators. Participation in the roundtables provides access to numerous benefits, including:

  • Peer-to-peer learning through discussion, interaction and the sharing of experiences that allow participants to learn from each other’s achievements and mistakes.
  • Support through highly qualified facilitators, expert guest speakers and connection to various small business resources.

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.

  • Your business and contact information will be accessible to State purchasing officials and prime contractors looking for subcontractors.
  • State agencies are encouraged to get quotes from and use qualified, certified companies whenever possible.
  • 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.

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 seminars and courses to small and emerging construction businesses that assist in building a solid foundation of knowledge within the construction industry.

Louisiana Economic Gardening Initiative: Louisiana Economic Development’s Economic Gardening Initiative provides Louisiana-based small businesses with the information they need to grow and succeed. 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.

Small and Emerging Business Development Program: LED’s Small and Emerging Business Development (SEBD) Program 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.
  • SEBD Intermediaries provide a free needs assessment and assistance with accessing other program benefits.

Small Business Loan Guarantee 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

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.

  • 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.
  • 12% 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.

 

WORKFORCE INCENTIVES

Competitive Projects Payroll Incentive: The Competitive Projects Payroll Incentive Program provides an incentive rebate of up to 15% of a participating company’s new payroll for up to 10 years. Additionally, a participating company will be eligible for either a rebate of state sales and use taxes on capital expenditures or a 1.5% project facility expense rebate.

Enterprise Zone Program: The Enterprise Zone Program (EZ) 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. The benefit provides:

  • 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.

LED FastStart®: Recognized for its innovation, effectiveness, flexibility and efficiency, LED FastStart® is the nation’s best state workforce training program, according to Business Facilities magazine. FastStart provides customized employee recruitment, screening, training development and training delivery for eligible, new or expanding companies—all at no cost.

Quality Jobs: 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 of annual gross payroll for new direct jobs for up to 10 years.
  • Provides a state sales/use tax rebate on capital expenditures or a 1.5% project facility expense rebate on the total capital investment, excluding tax exempted items.

 

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