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Economic Development Incentives
Start-ups and businesses relocating or expanding in the greater Baton Rouge area may be eligible for special federal and state tax credits, as well as other incentives and financial assistance offered by the state and localities. BRAC staff is prepared to assist you in coordinating and customizing an aggressive incentives package based on the needs of your business.
Gulf Opportunity Zone
Extraordinary Federal Incentives
- Tax Exempt Bond Financing
Access capital at rates 1.5%-2% below conventional bond financing for the acquisition, construction and renovation of qualifying real property.
Note: Examples of 'qualifying projects' include manufacturing and warehouse facilities, office buildings, medical, hotel and other commercial facilities. - Bonus Depreciation: 50% First Year
Qualifying real and personal property used in the 'active conduct of a trade or business' and placed in service before December 31, 2008 may be eligible for a 50% write off of its basis in the first year of operation.
Note: GO Zone property cannot qualify for both tax exempt bond financing and 50% bonus depreciation. The business should assess which provision is most advantageous and select as an 'either/or' proposition. - Enhanced Net Operating Loss (NOL) Carryback: Five Years
Eligible NOL (including the 50% bonus depreciation for qualified real and personal property) can now be carried back five years to offset income from prior years' operations – whether these operations were in the GO Zone or not. - Tax Credits for Employers
Employers locating within the GO Zone and hiring workers whose 'principle abode' on August 28, 2005 was in the GO Zone may receive a federal tax credit equal to 40% of the first $6,000 in wages paid to qualifying employees hired prior to August 28, 2007.
Selected State Incentives
- Quality Jobs Program
Provides rebates of 5% or 6% per year of a qualifying company's new annual payroll for 10 years and rebates of the state's 4% sales/use tax on construction materials, machinery and equipment. - Industrial Property Tax Exemption Program
Abates local property taxes for 10 years on a manufacturer's investment in buildings, machinery and equipment. - Louisiana Enterprise Zone Program
Provides $2,500 tax credit for each net new permanent job created during the first five years of operation, and rebates of the state's 4% sales/use tax on construction materials, machinery and equipment. - The Governor's Rapid Response Fund
Permanent $10 million annual fund for major awards to businesses with economic development projects to create/retain jobs in Louisiana.
For additional Go Zone Information, click here.
Additional State Incentive Programs
Quality Jobs Program
Provides rebates of up to 6% per year of a qualifying company’s gross annual payroll associated with new jobs created by a project for up to 10 years, and a rebate of the state’s 4% sales/use tax on construction materials, machinery and equipment purchased during the construction period and used exclusively on-site. Note: You must complete an Advance Notification Form to be eligible for this program.
Industrial Property Tax Exemption Program
Abates local property taxes for 10 years on a manufacturer’s investment in buildings, machinery and equipment that are part of the manufacturing process and remain on the plant site. This incentive may be used by manufacturers new to the state as well as existing manufacturers undergoing an expansion. Note: You must complete an Advance Notification Form to be eligible for this program.
Louisiana Enterprise Zone Program
Provides a $2,500 tax credit for each net new permanent job created during the first five years of operation, and a rebate of the state’s 4% sales/use tax on materials, machinery, and equipment purchased during the construction period and used exclusively on-site. Note: You must complete an Advance Notification Form to be eligible for this program.
The Governor’s Rapid Response Fund
Permanent $10 million annual fund for major awards to businesses with economic development projects that will create/retain jobs in Louisiana. This program provides $5,000 to $25,000 loans for up to 180 days at zero interest to businesses with more than two, but less than 100, employees when other funds are secured, but not transmitted. Click here for the application form.
Headquarter Growth Program
Eliminates taxes on interest and dividends for companies locating their headquarters in Louisiana and aligns with other states to apportion income from capital gains.
Research and Development Credit
Provides tax credits of 8% - 20% for R&D activities for companies claiming federal income tax credit for research activities.
Rail Rolling Stock Tax Exemption
Offers incentives to companies to encourage the manufacturing and repair of rail rolling stock within Louisiana.
Early Stage Angel Investment Incentives
Accredited Louisiana investors can receive a 50% tax credit for early-stage investments in Louisiana start-ups.
Louisiana Film Tax Incentive Program
Provides a 25% tax credit based upon investments of $300,000 and up.
Digital Media Tax Incentive Program
Video game developers can earn a 20% tax credit against expenditures for production and long-term infrastructure in Louisiana.
Related Links
The Advance Notification Form must be submitted in order to be eligible for many of the state incentive programs.
For a complete list of Business Incentive Services from Louisiana Economic Development (LED), please click here.
