TerrebonneParish

TIF (Tax Increment Financing)

• TIF allows a municipality to issue bonds to pay for part of the costs of a new development. Property tax revenue (and sometimes sales tax revenue) generated by the development is then diverted from the public coffers and used to pay off the bonds. The diversion usually lasts for at least fifteen years and may last for as many as 30 or 40 years.

Revolving Loan Funds

• Provides low interest loans for qualified borrowers to create jobs within Terrebonne Parish.  Loans range between $25,000-$250,000.  There are two Revolving Loan Funds administered within the Parish.   There's a local fund and a regional fund.  Each fund can be applied for simultaneously.  The local RLF is administered through TEDA and the regional loan is administered through the South Central Planning.

Utilities & Economic Development

• Entergy Louisiana, SLECA (South Louisiana Electric Cooperative Association), and The Houma Power Company may offer economic incentives to some industries
• Incentives are negotiated with companies on an individual basis

Foreign Trade Zones

•  FTZ sites offer the advantage of duty-free storage, assembly, or manufacture of foreign goods
• Merchandise entering the US from the FTZ site is subject to duty and quota; merchandise exported from the FTZ site is exempt from all US Customs duties

Taxes

• The is no state property tax in Louisiana
• Terrebonne Parish levies property tax based on the assessed value of the land and/or the improvements multiplied by a millage determined by the location of the property
• Terrebonne Parish provides for a homestead exemption of $75,000 against the value of the residential property.

• Terrebonne Parish levies a parishwide sales tax of 4.5%
• The State of Louisiana levies a 4% sales tax

       

• Provides tax credits and rebates including a $2,500 tax credit for each net new permanent job created during the first five years of operation and a rebate of the state's 4% sales/use tax on the materials, machinery, and equipment purchased during the construction period and used exclusively on site state incentive program. Visit the LED Website for details.

• Rebates up to 6% of a qualifying company's gross annual payroll associated with new jobs created by a project for up to 10 years
• Rebate of the state's 4% sales/use tax on the materials, machinery, and equipment purchased during the construction period and used exclusively on site

• Provides a flat 25% tax credit based upon investments of $300,000 and up. Productions shot in Louisiana can take a 10% credit of their aggregate Louisiana payroll, in addition to an infrastructure tax credit of 15% of the investment for the construction of new production facilities or studios

• Allows video game developers to earn a 20% tax credit against expenditures for production and long-term infrastructure in Louisiana

• A one time tax credit ranging from $100 to $225 for each net new permanent job created as the result of a new business start-up or the expansion of an existing one
• The program is offered to most industries, but not in conjunction with the Enterprise Zone program or the Industrial Tax Exemption Program

• Abates local property taxes for 10 years on a manufacturer's investment in buildings, machinery, equipment, and other properties that are part of the manufacturing process and remain on the plant site

• Businesses will receive state tax credits for local property taxes paid on inventories to satisfy state income and corporate franchise taxes

• Provides funding for customized workforce training programs under certain criteria, to improve the competitiveness and productivity of Louisiana's workforce.  The program should enable Louisiana businesses in promoting employment stability
• A minimum of 10 net new jobs must be created unless upgrade training is involved

• Designed to benefit business and industry by assisting in skill development of existing employees and increasing employee productivity and growth of the company resulting in the creation of new jobs that may have been eliminated

• Awards from this permanent $10 million annual fund are made at the invitation of the Governor.  Awards, case by case to those projects that can potentially create/retain jobs in Louisiana

• Raw materials can be brought into the state without having to pay a tax on them until after they've been placed in the manufacturing process
• Cargoes in transit are exempt from taxation as long as they are kept intact within their smallest original shipping container
•  Louisiana ports and distribution facilities are also eligible for Freeport Law exemptions

• Provides tax credits for R&D activities from 8% to 20% for research activities. Companies will now be able to claim against state income and corporation franchise taxes up to 8% of the state's apportioned share of increased R&D expenses or 25% of its apportioned share of federal research credit claimed

• Provides accredited Louisiana investors with an incentive for making early-stage investments in Louisiana-based startups. The investor receives a 50% tax credit divided into portions of 10% over five years on his income or corporation franchise tax liability owed to the state.

Small Business Loan Guarantee Program

• Provides loan guarantees and participations to banks
• Guarantees may range up to 75% of the loan amount, not to exceed a maximum of $1.5 million

• Provides for a match investment for qualified Louisiana venture capital funds. The fund must have at least $5 million of private investment. LEDC may match funds on 1 LEDC dollar for each 2 of private capital up to an LEDC maximum or $5,000,000

Minority Venture Capital Match Program

•  Provides for a match investment for qualified minority venture capital funds. The fund must have at least $250,000 of private investment for which LEDC may invest $1.00 for every $2.00 of private capital up to $5 million

• Provides assistance for publicly-owned infrastructure to assist industrial or business development projects that promote economic development and that require state assistance. An eligible applicant for the grant award must be a public or quasi-public state entity or a political subdivision of the state and a private company who will be the primary beneficiary of the award.

Corporate Income Tax

• Tax ranges from 4% to 8% of the net taxable income
• When computing the net taxable income, the effective rate is reduced by the deduction of federal income taxes

Federal Incentives

• Under the GO Zone Act, taxpayers are now allowed an additional depreciation deduction of 50% of the depreciable basis of qualified property for the first year the property is placed in service
•  GO Zone property cannot qualify for both tax-exempt bond financing and the 50% bonus depreciation
• Depreciable improvements must be placed into service before Dec. 31, 2008.  All other property must be placed into service by Dec. 31, 2007

Increased Section 179 Expensing

• Qualifying property under Section 179 is generally personal property (new and used) acquired or purchased for use in a trade or business
• This provision applies with respect to qualified Section 179 GO Zone property acquired on or after Aug. 28, 2005, and placed in service on or before Dec. 31, 2007

• The Work Opportunity Tax Credit (WOTC)  is a federal tax credit that encourages employers to hire eight targeted groups of job seekers
• The incentive reduces employers' federal income tax liability by as much as $2,400 per qualified new worker

• The amount of rehabilitation tax credits is increased from 20% to 26% for historic buildings and from 10% to 13% for buildings placed in service before 1936, Rehabilitation of structures must occur on or after Aug. 28, 2005, and before Jan. 1, 2009.

• GO Zone Bonds present a unique opportunity to borrow capital at very favorable tax-exempt rates to acquire, construct, reconstruct or renovate non-residential real property, qualified residential rental projects, and public utility property in the GO Zone.
• The bonds must be issued prior to Jan. 1, 2011