Business Recovery and Hurricane Preparation

Gulf Opportunity Zone Act of 2005

The Gulf Opportunity Zone Act of 2005 is federal legislation that was passed by Congress and signed into law by President Bush in December of 2005. This legislation provides for Federal Tax Incentives to areas affected by Hurricanes Katrina and Rita that were designated as warranting individual or public and individual assistance.

The Louisiana Department of Economic Development in partnership with private business has created a guide to the Louisiana Gulf Opportunity Zone and the opportunities that exist in the Louisiana Gulf South post Hurricanes Katrina and Rita. Click here: http://www.gozoneguide.com/ for detailed information about each program. Below is a brief explanation of the main programs.

Gulf Opportunity "GO" ZoneBond

The Gulf Opportunity Zone Act will provide private businesses and corporations in Louisiana with the opportunity to finance construction and reconstruction of projects through the issuance of tax-exempt bonds. JEDCO is an authorized issuer of GO Zone tax-exempt bonds.

Private business owners and corporations mayborrow tax-exempt money to cover the costs of acquiring, constructing, and renovating, nonresidential real property located in the GO Zone- Jefferson Parish is included in this zone.

Eligible projects may include, but are not limited to: retail stores, warehouses, manufacturing facilities, industrial parks, office buildings, bank branches, hotels and motels, restaurants, physician office buildings, medical hospitals and clinics.

50 Percent Depreciation

The Gulf Opportunity Zone Act permits businesses to claim an additional first year depreciation deduction equal to 50% of new capital investments made in the Zone (taken in lieu of tax-exempt financing).

Applies to property placed in service prior to January 1, 2008 or January 1, 2009 for real property.

Section 179 Expensing

An enhanced section 179 expensing allows your business to write off up to $200,000 of expenditure on your company's taxes.

Sales and Use Tax Exemption for Hurricane Damage

Exemptions are available for the purchase, lease or rental of qualified manufacturing machinery and equipment. A 100% state sales and use tax exemption for the replacement of qualified machinery & equipment damaged during Hurricane Katrina. The sales tax charged on repair parts or services for these items is also excluded. Available through June 30, 2007.

Manufacturing Sales Tax Exemption

Jefferson Parish ‚Äì Certified Parish manufacturers can qualify for a 100% exclusion from local sales and use taxes on qualified manufacturing equipment. Manufacturers must be certified by the Louisiana Department of Revenue and present that certification to the Jefferson Parish Sheriff’s Office, Bureau of Taxation and Revenue. State certified manufacturers must register with the Sheriff's Office to get a Jefferson Parish Certificate of Exemption in order to receive the local parish taxes exclusion. This Certificate of Exemption is then presented by the company to its vendors. Contact Chief Andrew LeBlanc at This e-mail address is being protected from spambots. You need JavaScript enabled to view it for additional program information.

State of LA - The state’s sales tax exclusion for manufacturing and agricultural machinery and equipment became effective July 1, 2004 and is being phased-in each subsequent year until it is fully implemented on July 1, 2010. The phase-in rate is:

July 1, 2006-June 30, 2007 35% exclusion

July 1, 2007-June 30, 2008 54% exclusion

July 1, 2008-June 30, 2009 68% exclusion

July 1, 2009-June 30, 2010 82% exclusion

July 1, 2010-and thereafter 100% exclusion

Manufacturing must be in a LA location and the manufacturer must have a State Certificate of Exemption which can be accessed on the Louisiana Department of Revenue at http://www.rev.state.la.us/. Detailed information regarding the program and qualifications are available by contacting Taxpayer Services Division at 225-219-7356 or by accessing the Revenue Information Bulletin 04-012 at http://www.revenue.louisiana.gov/.

Property Tax Exemption

Louisiana manufacturers can receive exemption from property taxes for up to 10 years on buildings, equipment, machinery and improvements to land through the Industrial Tax Exemption Program. A Miscellaneous Capital Additions application may be filed for annual capitalized expenditures totaling less than $5 million and must be submitted to the State prior to March 31 of the following year in which expenditures were made.

Louisiana Industrial Tax Exemption Facts

Louisiana Industrial Tax Exemption Application

Louisiana Industrial Tax Exemption Milleage Rates 2009

Louisiana Facts Manufacturing Equipment

Louisiana Manufacturing Sales Tax Exclusion Application