INCENTIVES FOR NEW & EXISTING BUSINESSES
Performance-based grants are offered on a project-by-project basis and are dependent upon job creation and capital investment.
PILOT (Payment In Lieu of Taxes)
PILOT is an incentive program that enables a company to abate its ad valorem taxes upon the commitment to jobs and payroll. The term and scope of the PILOT are negotiated with a locally based entity, such as an Industrial Development Board.
Industrial Tax Exemption Program (ITEP)
With approval by the state’s Board of Commerce and Industry and local governmental entities, the program offers an attractive tax incentive on the qualifying capital investment to manufacturers who commit to jobs and payroll in Louisiana. The program provides manufacturers an 80% property tax abatement for an initial term of five years and the option to renew for five additional years at 80%.
Sales Tax Exemption
Municipalities may elect to abate a portion of their sales tax. This discretionary incentive is offered on a project-by-project basis and is dependent upon job creation and capital investment.
Utility Rate Reduction
Utility providers may elect to reduce their rate for a period of time. This discretionary incentive is offered on a project-by-project basis and is dependent upon demand, job creation, and capital investment.
On the Job Training (OJT) Program
An employee wage reimbursement program in which an employer agrees to custom-train a new employee for a skilled job and is then reimbursed for a major portion of the employee’s wages during training.
Restoration Tax Abatement
An up-to-ten-year abatement of property taxes (ad valorem) on renovations and improvements of existing commercial structures and owner-occupied residences located within economic development districts, downtown development districts, historic districts, and opportunity zones.
Louisiana Quality Jobs (QJ) Rebate Program
The QJ program provides a cash rebate to companies that create well-paid jobs and promote economic development.
This discretionary incentive is offered based on new jobs created. It provides customized employee recruitment, screening, training development, and training delivery for new or expanding eligible companies — all at no cost.
Incumbent Worker Training Program
Enterprise Zone Tax Credit Program
This jobs incentive program provides Louisiana income and franchise tax credits to a new or existing business located in Louisiana, creating new permanent net full-time jobs, and hiring at least 50% of those new net jobs from one of four targeted groups.
Research & Development Tax Credit
Provides existing businesses with operating facilities in Louisiana a tax credit of up to 30% of the expenses necessary to establish or continue research and development activities within the state.
Digital Media & Software Incentives
A 25% tax credit on qualified payroll for in-state labor and 18% for qualified production expenditures with zero cap and no minimum requirements.
Angel Investor Tax Credit
A 25% tax credit on investments by accredited investors who invest in early-stage, small wealth-creating Louisiana businesses that seek startup and expansion capital.
New Market Tax Credit (NMTC)
NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in businesses or economic development projects located in some of the most distressed communities in the nation.
Provided for companies to re-invest their capital gains into Opportunity Funds, which are specialized vehicles dedicated to investing in designated low-income areas.
Work Opportunity Tax Credits (WOTC)
WOTC is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.
Foreign Trade Zones (FTZ)
FTZ permit delayed or reduced duty payments on foreign merchandise, allowing US companies to effectively engage in value-added activities to compete with foreign alternatives.
Research & Development (R&D) Tax Credit
The R&D Tax Credit is not a deduction; it is an actual dollar-for-dollar credit against taxes owed or taxes paid. Additionally, the taxpayer may be able to expense all such qualifying R&D costs in the year incurred.
The Export-Import Bank of the United States is the official export credit agency of the United States. It offers financing options for companies competing in the global market and fill gaps in private-sector financing.
Small Business Administration (SBA)
SBA provides a variety of small business assistance programs including loans, business consulting, technical assistance, and training.
USDA Rural Development Grants
USDA Rural Development’s Business Programs provide financial backing and technical assistance to stimulate business creation and growth.
State Corporate Income Tax
- 3.5% on the first $50,000
- 5.5% on the next $100,000
- 7.5% percent on the excess over $150,000
Louisiana uses single sales factor.
State Corporate Franchise Tax
$2.75 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana
The initial corporation franchise tax is $110.
Unemployment Insurance Tax
Standard rate range is .10% – 6.2%
The rate for new employers is the average rate for a particular industry.
The maximum unemployment weekly benefit is 1/2 of the claimant’s previous wage earnings for 26 weeks.
- City of Shreveport – 9.05%
- City of Monroe – 10.44%
- City of Minden – 9.95%
- City of Ruston – 10.45%
- City of Natchitoches – 9.95%
Rates include the state sales tax (4.45%). Manufacturing machinery and equipment are exempt from state sales tax.
The state sales tax rate for business utilities is 2%. Business utilities are exempt from other sales tax levies.
The rates provided here are representative of the two principal cities and three micropolitan cities in NLEP’s territory. More sales tax rates can be found here
Louisiana does not have state property tax. Taxes are levied annually by local and parish authorities via millages. To calculate property tax, multiply the assessed value of the property by the appropriate millage rate. The assessed value is the fair market value of the property times 10% for real property or 15% for personal property.
These 2022 millages do not include special assessments or special districts that can be associated with specific parcels.
The millages provided here are representative of the two principal cities and three micropolitan cities in NLEP’s territory.