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 ten-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 Economic Development Award Program provides funding for site and/or infrastructure improvements for projects creating new jobs.

Industrial Tax Exemption Program: The Louisiana Industrial Ad Valorem Tax Exemption Program (ITEP) is an attractive property tax incentive program for manufacturers within the state. With local approval, the program provides up to a 100% property tax abatement for an initial term of up to five years and the option to renew for up to three additional years at up to 80% property tax abatement on a manufacturer’s qualifying capital investment related to the manufacturing process.

Retention and Modernization Tax Credit: The Retention and Modernization Tax Credit provides up to a 3.6% 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 up to a ten-year abatement of ad valorem property taxes on the renovations and improvements of existing commercial structures and owner-occupied residences. The ten-year period takes the form of an initial five-year contract, with the option of a five-year renewal with local governing authority approval. This incentive is open to all Louisiana businesses and homeowners with existing structures to be expanded, restored, improved, or developed in qualifying locations and approved by the local governing authority. Qualifying locations for properties include:

  • Downtown Development Districts
  • Historic Districts (includes properties listed on the National Register of Historic Places)
  • Economic Development Districts

 

PRODUCTION & INVESTOR INCENTIVES

Angel Investor Tax Credit: Louisiana’s Angel Investor Tax Credit (AITC) encourages accredited investors to invest in early-state, small, wealth-creating Louisiana businesses that seek startup and expansion capital. The program provides a 25% tax credit up to accredited investors when they invest in businesses certified by Louisiana Economic Development as Louisiana Entrepreneurial Businesses. Investors can invest $720,000 per business per year and $1.44 million per business over the life of the program. The program is capped at $3.6 million annually. 

Digital Interactive Media and Software Development Incentive: Louisiana’s Digital Media and Software Development Incentive is the strongest of its kind in the nation, helping innovative digital media and software development companies of all sizes gain a competitive edge. The program provides a rebate or refundable tax credit of 25% for resident labor expenditures and 18% for eligible production expenditures. The program has no cap and no minimum requirements. The tax credits earned by companies can either 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: The Motion Picture Investor Tax Credit program provides a tax credit of up to 40% on total, qualified in-state production expenditures, including resident and nonresident labor. The tax credits may be used to offset personal or corporate income tax liability in Louisiana or the credits may be transferred back to the State for 90% of face value (with a 2% transfer fee, resulting in an 88% net). Program specifics include:

  • Up to a 40% tax credit (25% base credit; 10% increase for Louisiana screenplay productions, 5% increase if outside of the New Orleans Metro Statistical Area)
  • $50,000 minimum in-state expenditure requirement for Louisiana screenplay productions
  • $300,000 minimum in-state expenditure requirement on all other eligible productions

Musical and Theatrical Production Performance Tax Credit: The Musical and Theatrical Production Tax Credit provides a tax credit of up to 25% on qualified production and payroll expenditures through its unique tax incentive that applies to various live events ranging from national concert tours to new theatrical productions. Tax credits are refundable or transferable on a one-time basis. The program is subject to a $10 million cap per year (with 50% or $5 million being reserved for not-for-profit organizations). The eligible benefits include up to an 18% tax credit for certified Louisiana expenditures over $1,000,000 and an additional 7% tax credit for payroll expenditures on Louisiana resident payroll.

Qualified Entertainment Company: The Qualified Entertainment Company (QEC) program provides up to a 20% payroll tax credit that can be immediately redeemed with the state for 90% of value. The QEC must be authorized to do business in Louisiana and engaged in developing or distributing audio, visual, or audio-visual entertainment products. In order to qualify, the QEC must create at least five new full-time jobs. Credits may be earned for five years, with a potential renewal of five more years.

Qualified Music Company: The Qualified Music Company (QMC) program provides up to a 15% payroll tax credit to qualified music industry-related companies that provide a minimum of three net new jobs for Louisiana residents. Credits may be earned for five years, with a potential renewal of five more years. 

Research and Development Tax Credit: The Research and Development Tax Credit, designed to encourage existing businesses with operating facilities in Louisiana to establish or continue research and development activities with the state, provides up to a 30% tax credit for Louisiana businesses that conduct research and development activities in Louisiana. The program has no cap nor a minimum requirement.

Sound Recording Investor Tax Credit: The Sound Recording Investor Tax Credit provides an 18% refundable tax credit for sound recording projects, such as recording of music, poetry, or spoken-word performance, made in the State of Louisiana on qualified production expenditures. The investor tax credits are issued as rebate. The program is subject to a cap of $2.6 million per year and projects are subject to a $100,000 cap per year.

 

SMALL BUSINESS INCENTIVES

Bonding Assistance Program: The 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. The Bonding Assistance Program may mitigate some risk to surety companies, 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 ten 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: The 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.

Louisiana Contractors Accreditation Institute: The Louisiana Contractors Accreditation Institute, a partnership between Louisiana Economic Development, Louisiana Community & Technical College System, and the Louisiana Licensing Board for Contractors, offers small and emerging construction businesses with critical information on construction management and overall preparation for the business and law portion of the Contractors Licensing Exam.

Louisiana Economic Gardening Initiative: Louisiana’s Economic Gardening Initiative provides Louisiana-based small businesses with the information they need to grow and succeed through accelerated technical assistance and research from an experienced national economic gardening team who provides customized service tailored to a company’s specific 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: The Small and Emerging Business Development program provides developmental assistance to small businesses, including entrepreneurial training, marketing, computer skills, accounting, business planning, and legal and industry-specific assistance.

Small Business Loan Guarantee Program: The Small Business Loan Guarantee Program facilitates capital accessibility for small business by providing up to 75% loan guarantees to facilitate capital accessibility ranging from $5,000 to $1.5 million. This program is in association with the federal State Small Business Credit Initiative (SSBCI). The purpose of the program is to help with the development, expansion, and retention of Louisiana small businesses.

Veteran Initiative: Louisiana’s Veteran Initiative (LAVETBIZ) is designed to help Louisiana Veteran-owned and Service-Connected Disabled-Veteran owned small business gain greater access to purchasing and contracting opportunities that are available at the state government level.

 

WORKFORCE INCENTIVES

Competitive Projects Payroll Incentive: The Competitive Projects Payroll Incentive provides a 15% payroll rebate to participating companies from target sectors that also provide high quality jobs for Louisiana citizens. Additionally, a participating company may be eligible for either a rebate of state sales and-use tax on capital expenditures or a 1.2% project facility expense rebate. Eligible companies may participate in the program for up to ten years.

Enterprise Zone Program: The Enterprise Zone Program (EZ) 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: residents living in a Louisiana enterprise zone, people receiving an approved form of public assistance, people lacking basic skills, or people unemployable by traditional standards. The program specifics include:

  • Either a one-time $3,500 or $1,000 tax credit for each certified net new job created, and
  • Either a sales-and-use tax rebate on capital expenses or a 1.5% refundable investment tax credit for qualifying expenses

LED FastStart®: Louisiana Economic Development’s FastStart® Program provides customized workforce recruitment, screening, and training for new and expanding Louisiana companies at no cost. All phases are completely designed, developed and delivered via LED FastStart® team members based upon company’s expectations for the immediate and long-term workforce needs.

Quality Jobs: The Quality Jobs (QJ) program provides up to a 6% payroll rebate to companies that create well-paid jobs within certain target sectors. In addition to the payroll rebate, companies can also qualify for either a sales-and-use tax rebate on capital expenditures or an investment tax credit equal to 1.5% of qualifying expenses. Eligible companies may participate in the program for up to 10 years. Additional specifics of the program include:

  • Net new jobs requirements of five net new jobs for companies with 50 or fewer employees or 15 net new jobs for companies with more than 50 employees
  • Minimum wage rate and payroll benefit levels of $18/hour for those seeking a 4% payroll rebate or $21.66/hour for those seeking a 6% payroll rebate. Companies are further required to offer healthcare that at a minimum meets federally mandated healthcare requirements (ACA compliant)
  • Eligible industries and employer types include advanced materials; agriculture, forest and food technology; durable goods manufacturing (marine, automotive, aviation); information technology; biotechnology, biomedical, and medical industries serving rural hospitals; logistics and transportation; oil and gas and energy; headquarters; petrochemical and environmental technology, clean energy; headquarters; back-office operations; and aircraft MROs.

 

 

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