Enterprise Zone Program

Requires submittal of Advance Notification and a $250 non-refundable fee to Louisiana Economic Development and must be filed and received by the Office of Business Development/Business Incentives Division (BI) prior to starting construction, purchasing, installing equipment or hiring. The Advance Notification must be submitted electronically on the Louisiana Economic Development’s NextGEN portal of Fastlane website.

The 2020 Louisiana Legislature Special Session adopted the following amendment to the rules for the Louisiana Enterprise Zone Program via House Bill 13 passed into Act 28 signed by the governor effective July 1, 2020. Allows the Enterprise Zone program to be extended and allows the businesses classified as retail trade, restaurants and bars, and accommodations back into the program with advance notification filing from July 1, 2020 to December 31, 2021. Eligibility to receive benefits terminates after June 30, 2023. The program as a whole is extended to allow advance notification filings up to July 1, 2026. To be eligible, retailers with two and three digit NAICS of 44, 45, 721 and 722 with fifty or fewer employees nationwide, including affiliates.

The Facts

The Enterprise Zone program is a jobs incentive program that provides Louisiana income and franchise tax credits to a new or existing business located in Louisiana creating permanent net new full-time jobs, and hiring at least 50% of those net new jobs from one of four targeted groups. The benefit provides:

• Either a one-time $3,500 or $1,000 tax credit for each net new job created.
• A 4% rebate of state sales and use taxes and a partial local rebate of sales/use taxes paid on qualifying materials, machinery, furniture, and/or equipment purchased or a 1.5% refundable investment tax credit on the total capital investment, excluding tax exempted items. The rebate shall not exceed $100,000 per net new job.

Eligibility

The program is open to Louisiana businesses (new or existing) that will:

• Create a minimum of five permanent net new full-time jobs within 24 months of their project start date or increase their current nationwide workforce by 10% within the first 12 months.
• Hire 50% of the net new jobs created from one or more of the certification requirements from these targeted groups:

1. Residents: someone living in Enterprise Zone within the state.
2. People receiving an approved form of public assistance.
3. People lacking basic skills. A person performing below a ninth grade proficiency in reading, writing or mathematics.
4. People unemployable by traditional standards.

Business engaged in gaming, residential development, churches, restaurants, hotels, employment service agencies and retail businesses having a NAICS code beginning with 44, 45, 721, 722 or 5613 are not eligible.  Requires submittal of Advance Notification and $250 non-refundable fee to LED.

JEDCO
Margo Ruiz
Economic Information & Incentives Coordinator
Phone: (504) 875-3920
Fax: (504) 875-3923
Email: mruiz@jedco.org

LOUISIANA ECONOMIC DEVELOPMENT
Joyce Metoyer
Program Administrator
Business Incentive Services
Phone: (225) 342-0485
Email: joyce.metoyer@la.gov
www.louisianaeconomicdevelopment.com