Port of Greater Baton Rouge

Port Business Development

Business Incentives

The State of Louisiana offers several business incentives which are listed below with a brief explanation.  For more detailed information, these incentives can be found at www.lded.state.la.us.

Automotive and Aerospace Industry Tax Credit—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. 

 

Biotechnology Sales/Use Tax Exemption—Equipment classified under the NAICS biotechnology category

will be exempted from all state and local sales and use taxes.

 

Corporate Jobs Tax Credit—Provides credits of up to $225 per new worker. The credits can be used to

satisfy state corporate income taxes.

 

Customized Software Tax Phaseout—Customized software developers in Louisiana are exempt from

state sales and use taxes (local is optional). The tax exemption will be phased in until 100 percent is

exempted beginning in July 2005.

 

Economic Development Award Program—Grants for publicly owned infrastructure to assist industrial or

business development projects, with a minimum of $25,000.

 

Enterprise Zone Program—Provides tax credits and other incentives to businesses locating in officially

designated Enterprise Zones. The program offers tax credits of $2,500 per new job and state sales tax

rebates on purchases of materials and equipment during the construction phase.

 

Freeport Law—Manufacturers bringing raw materials into the state do not pay taxes on them if the goods

are held on public property of a port, docks of the common carrier in which they entered the state, or held in

public or private storage in their original containers or for raw materials or bulk. Tax exemptions are also

allowed for items held for export outside the state and for goods that are in transit through the state IN

interstate commerce, if the point of origin and final destination are both outside of Louisiana and the goods

remain in original containers. 

 

Incumbent Worker Training ProgramLouisiana has a $50 million fund to upgrade the skills of existing

workers or to train new employees of resident industry. Local workforce investment boards, technical

colleges and the LA Department of Labor work together to provide this benefit.

 

Industrial Tax Exemption—New manufacturing operations and expansions are eligible for a five-year

exemption from property taxes on buildings, equipment and machinery. May be renewed for an additional

five-year exemption.

Inventory Tax Credit—Manufacturers and distributors receive a credit against state corporate income and

franchise taxes for the amount of their local inventory taxes.

 

Micro Loan Program—Leverages loans to qualified small businesses, minority-owned, women-owned and

disabled-owned businesses in Louisiana on participation or guaranty basis with commercial lending

institutions and licenses, up to $50,000.

 

Quality Jobs Program—Grants businesses engaged in manufacturing or other basic industries cash rebate

up to 6 percent of its annual gross payroll. Qualifying companies must have a minimum annual payroll of

$500,000 ($250,000 for less than 50 employees), pay wages of 1.75 the minimum wage, and provide 85

percent insurance coverage. This program also rebates sales taxes paid on materials and equipment

purchased during the construction phase of the project. 

 

Qualified Recycling Equipment—Purchases made of qualified recycling equipment to be used in

Louisiana shall be entitled to a credit against any income and franchise tax liability in an amount equal to 20

percent of the cost of the recycling equipment less than the amount of any other tax credits received for the

purchase of such equipment.

 

Research & Development Tax Credit Program—Companies claiming Federal income tax credit for

research activities will now be able to claim credit against state income and corporation franchise taxes. The

Income Tax program will begin in 2003 and the Franchise Tax program will begin in 2004. 

 

Restoration Tax Abatement Program—Provides a 10-year property tax abatement on the improvements

made to commercial and residential properties in designated downtown development districts, economic

development districts and historic districts.

 

Small Business Loan Program—Leverages loans to qualified small businesses, minority-owned, women-

owned and disabled-owned businesses in Louisiana on participation or guarantee basis with commercial

lending institutions and licenses, up to $700,000.

 

Technical Commercialization Credit Program—Companies partnering with Louisiana universities can

claim an annual 15 percent credit against the costs of investment in machinery, equipment and expenditures

associated with obtaining rights for the use of technology, including patents, copyrights, licenses and the

leasing of equipment for an initial four-year program time. Businesses in identified traditional or seed

clusters with no more than 225 employees, and not less than 75 percent of all employees residing in

Louisiana, can sell tax credits for 75 percent of their value to another Louisiana taxpayer.

 

University Research and Development Parks—Businesses may be granted rebates for state and local

taxes on machinery and equipment used in an R&D park in association with an accredited university.

 

Venture Capital Co-Investment Program—Venture capital funds with at least $7.5 million under their

management and at least five years experience in venture capital activities are eligible to participate. A 25

percent co-investment from the Louisiana Economic Development Corporation for Louisiana businesses, not

to exceed 25 percent of the total venture capital investment with a maximum of $500,000. 


Workforce Development and Training Program—Provides funding for customized workforce training

programs to improve the competitiveness and productivity of Louisiana’s workforce and business community

and to assist Louisiana businesses in promoting employment stability.

 

Source: Louisiana Department of Economic Development