Louisiana Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.

We were recently asked about credits and incentives in Louisiana. I was able to speak with some Louisiana economic development professionals and learned some of their details (LED site click here).

Louisiana’s main tax credits and incentives are meant to encourage new jobs within the state.  Incentives and credits are available to a wide range of targeted industries that include manufacturing, aerospace, energy, data centers, environmental controls, motion picture production, headquarters facilities, and others.

Louisiana’s credits and incentives range in complexity and are typically more generous than other states (check out Louisiana’s Incentive Evaluator site here).

Compared to Georgia, Louisiana has:

  • A similar range of incentive and credits.
  • A somewhat smaller range of companies eligible for most credits.
  • Similar qualifying activities and $$ incentive amounts.
  • A more hands-on approach to working with companies and projects.
  • BIG DIFFERENCE — most incentives must be pre-approved and carefully planned.

To summarize, Louisiana is very competitive with surrounding states, and on a per-capita basis attracts more new industry than most other states. However, existing Louisiana businesses must get permission from the state to receive benefits from most of the credits and incentive programs.

Do any of your clients have Louisiana connections?  If so, check out Louisiana’s opportunities.

DaleSig