Biggins Lacy Shapiro & Company, LLC

Louisiana Economic Development Incentive Programs

cash rebates

Quality Jobs (QJ) program: Cash rebates of up to 6% on 80% of annual gross payroll of new direct jobs that meet wage requirements for a term of up to 10 years.  The State also has the ability to offer either a 4% state sales and use tax rebate on capital expenditures or a 1.5% project facility expense rebate on the total capital investment, excluding tax exempted items.

Competitive Projects Payroll Incentive Program:  Provides companies with an incentive rebate of up to 12% of new payroll for up to 10 years.  Additionally, the company will be eligible for either a 4% rebate of state sales and use taxes on capital expenditures or a rebate equal to 1.5% of project facility expenses.

TAX CREDITS

Research and Development Tax Credit:  Provides a transferable tax credit of 30% for R&D expenditures incurred in the State for companies which receive a federal Small Business Innovation and Research (SBIR) grant or a Small Business Technology Transfer (STTR) grant.  Non-SBIR or STTR companies can receive a non-refundable and non-transferable tax credit of up to 30% for R&D expenditures in the State. 

TAX EXEMPTIONS

Industrial Tax Exemption:  This program offers up to 80% property tax abatement for up to 10 years on manufacturer’s new investment. 

Sales Tax Exemption on Manufacturing Machinery & Equipment: Effective July 1, 2018, MM&E is exempted from 4% of state sales taxes, thus the tax rate for MM&E will be 1%.

Sales Tax Exemption on Business Utilities: Effective July 1, 2018, business utilities (electricity, water, steam, and natural gas) are exempted from 4% of state sales taxes, thus the tax rate for business utilities will be 1%.

SPECIAL ZONING

Enterprise Zone: Businesses that create permanent net new jobs, of which at least 50% are hired from one of four targeted groups, are eligible to receive income and franchise tax credits.  The benefits include either a one-time $3,500 or $1,000 tax credit for each new full-time job created as well as a 4% rebate of state sales and use tax on materials, machinery, furniture and/or equipment or a 1.5% refundable tax credit on total capital investment, excluding exempted items and at a maximum of $100,000 per net new job.

JOB TRAINING

FastStart®: Provides customized employee recruitment, screening, and training for new and expanding businesses.

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com