North Louisiana's business climate continues to improve as the state reforms it regulations, tax structure and ethics codes to make it easier for companies to operate in our state.
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North Louisiana's Business Climate Climbs the National Rankings

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.

Best National Business Climate Rankings:

  • Site Selection magazine ranks Louisiana No. 7 in the U.S. (November 2011)
  • Business Facilities has ranked Louisiana No. 2 in the U.S. (August 2011) 
  • Area Development magazine ranked Louisiana No. 6 nationally.  (September 2011)
  • Forbes ranked Louisiana No. 30, jumping 14 places from a year ago. (November 2011)
  • Pollina Corporate Real Estate Inc. ranked Louisiana  No. 18, up 22 spots since 2008 (August 2011)
  • Chief Executive magazine ranked Louisiana No. 27th, moving up 14 places from 2010. (May 2011) 


North Louisiana: Lowest Cost of Business


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. 
 

A Business-Friendly Tax Environment

Louisiana encourages business development by eliminating several taxes and creating a more business-friendly tax structure.
  • In 2008, Louisiana ranked No. 6 for states with the lowest tax burden (Anderson Economic Group's State Business Tax Burden State Rankings)
  • Louisiana also ranked No. 6 on business taxes to state profits 
  • Louisiana ranked No. 2 on business taxes to private GSP 
  • Taxes consumed only 12.2 percent of Louisiana business profits, compared to the national average of 16.7 percent


Taxes Eliminated:

  • Sales tax on manufacturing machinery and equipment
  • Sales tax on natural gas and business utilities
  • Capital gains tax on the sale of privately held businesses
  • Phase out of the franchise tax on corporate debt by 2011
  • Minimum corporate franchise tax

 
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.
 

State, Regional & Local Incentives Reduce Tax Liability

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.)

Good Deals for Manufacturers

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. 

Inventory Tax Advantage

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.