Business Retention and Modernization Tax Credit Program
The Business Retention and Modernization Tax Credit program was created to induce businesses to remain in Louisiana and to modernize existing operations.
To qualify for modernization tax credits an employer must meet the following two requirements:
1. Must be a manufacturer and
2. (a) Must increase the efficiency or capacity of its facility by at least 10% and must show that without the investment in modernization the facility would be a high risk for closure in the foreseeable future or
(b) Must be an employer with multi-state operations and an established competitive capital project with an approved investment of at least $5 million
- Modernization does not include the replacing of existing technology with the same or similar technology
- Eligible employers may earn certified tax credits at a rate of .72% over a five year period, for a total of 3.6% of the amount of the certified expenditures, subject to the program’s cap of $7,200,000 in tax credits per program year. Starting July 1, 2018 credit increases 1% each year for a period of 5 years, subject to a program cap of $10 million.
- A written application to Louisiana Economic Development is required. Participation in this program is at the discretion of the Secretary of Louisiana Economic Development.
- Application and other filing fees apply.
The Business Retention and Modernization Tax Credit program is administered by Louisiana Economic Development. For information contact:
LOUISIANA ECONOMIC DEVELOPMENT
Shawn Welcome, Senior Project Manager
Business Retention and Expansion