ENTERPRISE ZONE
The Enterprise Zone (EZ) Program is a program that provides an incentive for the creation of new jobs.
BENEFITS:
Job Credits. The employer receives a one time $2,500 credit against Louisiana income or franchise tax for each certified net new job created.
Sales/Use Tax Rebate or Investment Tax Credit. The employer may receive EITHER:
A rebate of Louisiana sales/use taxes paid on materials, furniture, fixtures, machinery and equipment purchased and used exclusively on the EZ site. In some cases some of the local sales taxes may be rebated too.
OR
A 1.5% refundable investment tax credit can be earned. This credit is earned on the amounts classified as capital expenditures for federal income tax purposes minus certain items (e.g. capitalized interest, capitalized cost of land, capitalized costs of manufacturing machinery and equipment excluded from sales tax, etc.).
ELIGIBILITY:
The employer must EITHER
Increase the current work force by 10% (minimum of 1) within the first 12 months
OR
Create a minimum of 5 net new jobs within the first 24 months.
35% of the net new jobs must meet at least one of four Certification Requirements.
ADVANCE NOTIFICATION:
The employer must file an Advance Notification with Louisiana Economic Development PRIOR to hiring, start of construction, or purchasing materials. Activity prior to filing the Advance Notification is not eligible for benefits but late filing of the Advance Notification does not preclude benefits for activity after filing of the Advance Notification.
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