Industry Specific Incentives
Cargo in transit is exempt from taxation as long as it is kept intact within its smallest original shipping container. Most manufacturers can bring raw materials into the state without paying taxes on them until they are placed in the manufacturing process or shipped out of state. The Freeport Law is administered by the local parish Tax Assessor. Louisiana ports and distribution facilities are also eligible for Freeport Law exemptions.
Musical and Theatrical Production Income Tax Credit
For certified production expenditures up to $10 million in tax credits may be issued 10% 25% of the expenditures. For expenditures to "transportation" companies to these productions tax credits of 100% are available through 2010 and 50% in 2011 and 25% in 2012. Additional credits are available for hiring students.
Digital Media / Live Performance / Motion Picture / Sound Recording Tax Credits
The State of Louisiana provides tax credits that are calculated as a percentage of the total base investment dollars certified per production project. The program offers an additional labor tax credit based on payroll expenditures for each Louisiana resident employed in connection with the production. Investors in this industry are also able to transfer these earned credits for a percentage of the face value of the credits. * Motion Picture Industry Development Tax Credit A transferable credit of 30% for in-state motion picture production and an additional 5% on Louisiana labor * Music/Sound Recording Tax Credit Refundable tax credit of 25% for in-state expenditures related to the production of a sound recording * Digital Media Tax Credit Interactive digital media, such as video game developers, earn a 25% tax credit for expenditures in Louisiana and an additional 10% for Louisiana labor * Live Performance Expenditures on production and infrastructure can earn a tax credit of up to 25% and an additional 10% for Louisiana labor.
Mentor-Protégé Tax Credit Program
Louisiana Economic Development supports established construction companies that choose to mentor the development of protégé firms as competitive contractors, subcontractors and joint venture partners. Through the Mentor-Protégé Tax Credit program, LED enhances Louisiana's business environment for new construction companies. This program provides technical and economic benefits to Louisiana-based contractors who will create and/or retain jobs for Louisiana citizens, expand the state's economy and increase available quality jobs.
With the Mentor-Protégé Tax Credit program Act of 2007, mentor firms can receive Louisiana income or franchise tax credits of up to $50,000 per year by making technical assistance available to a protégé firm.
Mentor Firm Requirements Committed and able to provide professional guidance and support to protégés, which facilitates their development and growth, particularly in the critical areas of private and public procurements in construction. Demonstrate favorable financial health, including profitability for at least the last two years. Demonstrate the capability to provide managerial or technical skills transfer or capacity building. Capable of contracting with private and public entities In "good standing" with the Secretary of State and not in violation of any state statutes, rules or governing policies. Protégé Firm Requirements may not be an affiliate or related party of the mentor. Certified active in Louisiana Economic Development's Small and Emerging Business Development Program or is registered in the state's Hudson Initiative - Small Entrepreneurship Certification Program. In "good standing" with the Secretary of State and not in violation of any state statutes, rules or governing policies.
How to Apply
Companies interested in applying for Mentor-Protégé Tax Credits must submit an application for approval as a mentor or protégé to LED's Community Outreach Services. Companies interested in participating in the Mentor-Protégé Tax Credit program must submit the appropriate application for approval to: Louisiana Economic Development Community Outreach Services - Entrepreneurial Services P.O. Box 94185 Baton Rouge, LA 70804-9185 Firms interested in participating, whether as a mentor or protégé, must be accepted prior to negotiation of a mentor-protégé agreement.
Industrial Tax Exemption Program
The Industrial Tax Exemption (ITE) Program provides property tax abatement for up to 10 years on a manufacturer's new investment and annual capitalized additions. This exemption applies to all improvements to the land, buildings, machinery, equipment and any other property that is part of the manufacturing process.
Available exclusively to manufacturers. Available to manufacturers new to the state, as well as new investments and miscellaneous capital additions to existing facilities in Louisiana. In order to qualify for ITE, tax exempt property must remain on the plant site at all times. The land itself is not eligible for tax exemption, nor are assets that have had property taxes paid on them - whether by current owner or previous owners - unless there are improvements to a building; then the improvements alone can be exempted.
How to Apply
A manufacturer must submit an Advance Notification form if an individual project is to be greater than $5 million, or if the business is also applying for another incentive, e.g., Enterprise Zone or Quality Jobs, for the same project. The Advance Notification form must be filed prior to purchasing materials or prior to the beginning of construction. A manufacturer may submit an application with an accumulation of Miscellaneous Capital Additions (MCA) for a compilation of small capitalized expenditures (projects) which are completed by the end of a calendar year and not greater than $5 million per application. More than one MCA application may be submitted per year. Contracts may be granted for a maximum of 5 years. An option to renew the exemption for an additional 5 years is available. Note: An exemption cannot be granted for more than a total of ten years on any investment.
Automotive and Aerospace Industry Tax Credit
The program provides a $5,000 one-time tax credit per new job for companies in the automotive and aerospace industries that participate in the state's Enterprise Zone program.