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.
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.