Other Tax Credits
Industrial Property Tax Exemption Program
Louisiana’s Industrial Property Tax Exemption Program exempts new manufacturing facilities and expansions from all property taxes for up to ten years. Program benefits can be combined with those of other programs, such as the Enterprise Zone or Quality Jobs programs.
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
Login to FastLane on the Louisiana Economic Development website and fill out an Advance Notification form. 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.
Technology Commercialization Credit and Jobs Program
The technology commercialization credit offers tax credits to encourage Louisiana businesses to commercialize research conducted at Louisiana universities and to promote job creation. For commercializing technology -"development of a technology into a commercial product by going through the process of prototyping, securing funding, and other steps necessary to get the final product to the marketplace"-- an individual or business may earn a credit on any income or corporation franchise tax liability equal to 40 percent of an investment up to $250,000 in commercialization costs for a business location. Credit may be carried forward for up to 20 years. The firm may also earn an additional refundable 6% gross payroll tax credit based on new jobs created and other requirements. Credit on new jobs created may be earned up to five years. It is renewable for an additional five years if the taxpayer demonstrates that they meet all the requirements in the past five years. The program requires an agreement with a Louisiana regionally accredited college, technical school, university, or a research company to commercialize or research a technology.
How to Apply
Complete and submit application to LED.
Tax Increment Financing
Louisiana law provides for two types of Tax Increment Financing mechanisms: (1) property tax, also known as ad valorem, and (2) sales tax. Either form may be utilized to enhance an economic development project. In these, it is assumed the project will create future increases in tax revenue above present level of revenues collected in a specific geographic area. This portion of the specific revenue stream may be used to satisfy bond or other debt incurred in the construction of improvements, improvements which may be presumed to create increased tax revenues available. Economic development projects which may be enhanced through either TIF include initiatives in the following sectors: industrial/manufacturing, housing, hotel/motel, commercial/retail, amusement/theme park/tourism, transportation, medical services, and any other industry which the local government determines to be of economic significance.
Tax Equalization Program
The Tax Equalization Program attracts retains and encourages the expansion of manufacturing establishments, headquarters, warehousing and distribution establishments to Louisiana that would not do so in Louisiana due to a higher tax burden. The program equalizes the overall taxes between a Louisiana site and a competing site in another state when a company is planning an expansion. The competing site in another state must offer comparative advantages to Louisiana.
Research & Development Tax Credit
The Research and Development Tax Credit encourages existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state. Benefits Companies claiming federal income tax credit for research activities will now be able to claim against state income and corporation franchise taxes. The program provides a tax credit for up to 8% of the state's apportioned share of increased research and development expenses or 25% of its apportioned share of federal research. Eligibility Must encourage efforts to conduct research and development activities in Louisiana. Must have received grant(s) for Small Business Innovation Research (SBIR) and/or Small Business Technology Transfer (STTR) and/or claimed credit under 26 USC section 41(a). For comprehensive rules and details on eligibility, please review the below application and contact the appropriate administrator.
How to Apply
Complete the Research and Development Tax Credit Application and Application for Sale of Research and Development Tax Credit, located on the Louisiana Economic Development website. Then mail, fax or email the forms to Louisiana Economic Development.
New Market Tax Credit
The New Market Tax Credit program encourages investment in urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs. Private-sector investors receive credit against federal income taxes. The program allows individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in Community Development Entities, or CDEs. Credits can be obtained every year the investment is held, for up to seven years of the credit period.
Equity investments in low- to moderate-income areas may qualify for a 39% federal tax credit available through a special federal allocation for the Louisiana Gulf Opportunity Zone. Qualifying projects may leverage the federal program through an additional 25% state tax credit (64% total credit). May be used as equity for debt financing.
For eligibility information, visit Louisiana Department of Revenue's website atwww.revenue.louisiana.gov.
How to Apply
To apply for Louisiana New Market Tax Credits for 2009, taxpayers must submit a New Market Tax Credit Application to Louisiana Department of Revenue. The application is available on the Department of Revenue's website as form R-10609. All New Market Tax Credit applications are to be submitted via email to NewMarketTax.CreditApplication@la.gov.
Louisiana Foreign Trade Zones
Louisiana's six Foreign Trade Zones make it possible to import materials and components into the U.S. without paying duties until they enter into the U.S. market. Goods shipped directly out of the country from FTZs are duty-free.
Louisiana Foreign Trade Zones
Port of Entry
FTZ No. 2 > New Orleans
Board of Commissioners of the Port of New Orleans
c/o Jim Reese
P.O. Box 60046,
New Orleans, LA 70160
Fax (504) 524-4156
2A Union Carbide
2C Northrop Grumman Ship Systems
2D Northrop Grumman Ship Systems
2E Northrop Grumman Ship Systems
2F Northrop Grumman Ship Systems
2G Trinity Yachts Inc.
2H Chalmette Refining
2I Conoco Phillips
2J Murphy Oil USA
Inventory Tax Credit Program
A refundable credit is allowed against income tax for 100 percent of the ad valorem taxes for corporate franchise taxes paid to political subdivisions in Louisiana on inventory held by manufacturers, distributors, and retailers (R.S. 47:6006). A copy of the inventory tax assessment and a copy of the canceled check in payment of the tax must be attached to the return. When the amount of the inventory tax exceeds the aggregate state corporate tax liability, a refund is made by the state in the amount of the excess. For more information, visit Louisiana Department of Revenue