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Right-to-Work and Right-to-Profit laws passed by the Louisiana Legislature during the 1970s are but two examples of state and local determination to create a business climate second to none. A full range of attractive incentives, ranging from tax exemptions to employees training programs are available to new and expanding industries as part of an ongoing commitment to the economic development of the state and Northwest Louisiana. The following briefly outlines several of these incentives.
- Ten-Year Tax Exemption:
- While there is no state property tax in Louisiana, local political subdivisions may levy such a tax. The Louisiana State Constitution establishes a uniform assessment ratio of 15 percent of fair market value on plant, equipment and inventories, and 10 percent on land and residential property. However, because the state realizes the high costs involved in establishing a new manufacturing plant, the Louisiana Board of Commerce and Industry is authorized to grant exemptions from local property taxes on new manufacturing plants and equipment for 10 years on both new facilities and plant expansions.
- Job Credit:
- In lieu of the 10 year property tax exemption, Louisiana employers establishing a new business or expanding an existing facility can opt for a one-time credit of $100 for each new job created against any tax liability otherwise due the state. Companies may take this credit for the year(s) in which the new jobs are created or carry forward the credit to subsequent years until the credit is utilized. (This credit does not apply to new jobs created in Enterprise Zones.)
- Enterprise Zones:
- Louisiana's Enterprise Zone program offers firms locating and/or expanding facilities in urban or rural areas of high unemployment and low per capita income two distinct tax incentives:
- An exemption from sales tax on the purchase of machinery, tools and equipment as well as on any materials used in the construction of a new building or expansion/ improvement to an existing facility
- A $2,500 tax credit per net new employee position created, provided it did not previously exist and that the position is filled by a Louisiana resident. The credit applies against any income or franchise tax liability owed the state, and may be applied in the year earned or for the succeeding years until the entire credit is used.
- Freeport Law:
- Louisiana's Freeport Law allows interstate import or export cargoes to be tax exempt if they remain intact within at least their smallest original shipping container. In most cases, manufacturers may import raw materials without having to pay a tax until the material has been placed into the manufacturing process. Additionally, Louisiana ports and distribution centers also can be used for transshipment of raw material, goods, commodities and other articles without paying taxes.
- Louisiana Industrial Training
Program:
- The diversification of the area's economy, combined with the region's colleges and universities, has helped Northwest Louisiana build a labor infrastructure of technology that provides a valuable, well-trained pool of workers for virtually any industry. However, if workers are not available for a particular industrial application, the state's industrial training program will train the needed work force free of charge.
Depending on a company's needs, state funds are available to provide pre-employment training utilizing a vo-tech facility, a building provided by the community or in a facility leased through program funds. The Louisiana Department of Commerce develops instructional materials in line with the client company's specifications, and can include such materials as training manuals and slide presentations combined with video tapes of similar manufacturing operations operated elsewhere by the company.
Once employees are selected from the pre-employment program, the LDOC's Office of Commerce and Industry will help refine and perfect skills through an On-the-Job training program conducted by company supervisors under regular production conditions.
The salary rate of the supervisors will be reimbursed by the state under a contract with the Office of Commerce and Industry which is designed to allow adequate time for the trainees to reach the proficiency levels required by the contracting company.
- Labor Availability Survey:
- Companies interested in locating in Northwest Louisiana or expanding an existing facility may obtain free, confidential labor availability surveys for any locality within the region. These surveys are conducted by the Office of Commerce and Industry, in conjunction with the Office of Employment Security, using the company's own criteria.
- Employee Recruiting and Screening:
- The Office of Commerce and Industry also will conduct an employee recruiting and screening program to assist a company in finding and evaluating job applicants. The program is provided free of cost, and includes advertising, screening, testing and interviewing. Final hiring decisions are made by the participating company.
- Job Training Partnership Act Training:
- The Coordinating and Development Corporation, in conjunction with the Office of Employment Security, can arrange to train employees either through on-the-job or in classroom situations. Under this program, employers can be reimbursed up to 50% of the salary of the employee receiving the training.
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