When you start a business in Louisiana, the government can help you grow with various incentives, tax credits and other benefits. However, this help is not always easy to find and access. Here are some types of incentives and what it takes to get them.
Enterprise zone tax credit
Enterprise zones are areas where governments grant special tax breaks, often to encourage businesses. These zones are typically in economically depressed areas that may lack jobs and investment. Louisiana offers a tax credit of either a one-time $3500 or $100 for each net new job created by businesses located within an enterprise zone.
To qualify, your business must create at least five permanent full-time jobs within the first 24 hours of its operation. Either that or you must increase your nationwide workforce by at least 10% within your first 12 months.
As mentioned, the people that you hire should be living in an enterprise zone. People who are unemployable by traditional standards, approved for public assistance or lacking basic skills like proficiency in reading, writing or mathematics also qualify.
Louisiana film and television tax credit
Film production costs and budgets are eligible for income tax credits of up to 40% of the total cost when shot in Louisiana. According to business law, to be eligible, productions must allocate a minimum of $300,000 towards production costs based in Louisiana.
Louisiana quality jobs program
If your company offers well-paying jobs that promote economic development, you may be eligible for the Quality Jobs Program. To be eligible, your annual sales must consist of at least 50% from out-of-state transactions or in-state customers who resell your products or services to out-of-state customers or the federal government.
Or your business should be among the following industries:
- Food technology
- Clean energy technology
- Software
- Manufacturing
- Bioscience
Louisiana truly is a state that values economic development and is willing to invest in it. Therefore, leverage these programs to your advantage and let Louisiana’s vibrant economy be the launchpad to your business success.