| Description: |
(1) ENTERPRISE ZONE PROGRAM: A jobs incentive program which provides Louisiana Income and Franchise tax credits to a business hiring a minimum number of net new employees, 35% of these new jobs must be filled from one of four targeted groups. Because of the jobs creation, Sales/Use Tax rebates may be available. A credit of $2,500 is allowed for each new, full-time job. Aerospace or automobile manufactures may qualify for a one-time $5,000 credit. Residential developments meeting specific requirements may qualify for the credit. Credits are applied against income and franchise tax and may be carried forward for 10 years. (Sales and use tax rebates may also apply.) (2) RENEWAL COMMUNITY INITIATIVE- HUD designated 40 of the most distressed communities as Renewal Communities. A wide range of tax incentives are available to these communities. (3) GULF OPPORTUNITY ZONE Any business considering an investment in new, replacement, or expanded operations, buildings or equipment within the GO Zone are eligible to receive various credits and incentives. These incentives include: (a) a bonus depreciation deduction equal to 50% of its cost in addition to normal depreciation deduction, (b) a 5 year NOL Carryback from 2 years to 5 years with carryforwards of the NOL for up to 15 years; losses include moving expenses, temporary housing cost, repair expenses, and others, (c) tax exempt financing has been authorized for a wide use of commercial projects; LA currently has an excess of 7.9 billion tax exempt gold bonds, (d) 100% first year equipment expense deduction; small businesses are permitted to expense up to $200,000 of equipment and computer software expense, (e) demolition and clean-up expense - Businesses are allowed to expense 50% of their demolition and clean-up expenses incurred through 2007; (f) incentives for employers - the WOTC qualifying definition has been expanded.
|
| Eligibility Requirements: |
1) Must be located in an designated Enterprise Zone (may be applicable is not located in the zone). Must increase statewide workforce by 10% or create 5 net new jobs. 2) Must be in a designated renewal community area. 3) Businesses must expand, construct, and renovate within the GO Zone area. Businesses must apply with the State, Local and Federal authorities which administer the various incentives. |
