North Louisiana and the state are consistently climbing the national rankings for best business climate . In 2011, Louisiana jumped to its highest-ever business climate ranking by every leading publication that measures the economic progress of states. Over the past four years, no state has improved more than Louisiana.
Our region offers the lowest cost of doing business in the nation and in North America, as ranked by Forbes magazine (2011) and KPMG Competitive Alternatives (2010). North Louisiana's cost competitive tax structure, utility rates, transportation and labor costs offer businesses a sustainable solution for competing nationally and globally.
Louisiana also deducts federal income tax from state corporate income tax. These pro-growth policies have strengthened Louisiana’s tax environment, making it a more competitive place to invest and develop a business. The state has also recently implemented the largest personal income tax cut in state history, putting more money back into the pockets of Louisiana’s taxpayers.
Businesses in Louisiana have access to a competitive, comprehensive portfolio of state, federal and local incentives that can make a profound impact on a company’s bottom line. Incentives, such as Enterprise Zone, Quality Jobs, Research & Development Tax Credit, Industrial Tax Exemption and Louisiana FastStart™ are available to help companies compete and succeed. NLEP can provide advocacy and assistance with applying with statutory incentive programs. We can also assist companies with requesting for discretionary state, regional or local incentives. Please contact our business development team for more information. (Qualifying for many of the incentive programs depends on job creation and capital investment.)
Louisiana’s use of single-factor sales apportionment to calculate manufacturers’ corporate income taxes. This provides a significant cost advantage, because manufacturers are not taxed on earnings generated by sales to out-of-state entities. This is not the case in the majority of other states. As of July 1, 2009, electricity, water, natural gas, machinery and equipment used by manufacturers are exempt from Louisiana sales tax.
In Louisiana, when a business files its state income and franchise tax, it can simply claim the amount it paid to local authorities for inventory taxes as a refundable credit. If the inventory taxes paid to the local authorities exceed the company’s state income and franchise tax liabilities, the company gets the balance as a refund.
Combined with the state’s strong logistics and infrastructure, comprehensive workforce development network, innovative industry developments, and low cost of doing business, North Louisiana is the place for business investment.