Incentives in Delhi
Providing a pro-business environment is key to a region's success. In Northeast Louisiana, there is a long tradition of investing in the community and its people. State and local governments understand the importance of a successful business because with that success, growth in the economy follows. Businesses are offered several incentives in Northeast Louisiana from taxes and employment education programs to aggressive public programs that invest in training and infrastructure. Northeast Louisiana is a place where businesses get more for their investment, whether they're relocating or expanding.
Introduction
In December 2000, the United States Congress approved the designation of forty new renewal communities. The goal of the renewal community program is to promote economic development in distressed communities. Businesses small, medium, and large, located within the boundaries of renewal communities are eligible for Federal tax incentives to hire local residents and to expand or improve their operations. Northeast Louisiana Economic Alliance (NELEA) is the Coordinating Responsible Authority (CoRA) for the Northern and Central Renewal Communities made up of twenty-five (25) parishes in Louisiana.
Businesses can benefit from lucrative tax incentives offered by both the federal government and that State of Louisiana. The Renewal Community is a federal designation that makes a wealth of incentives available to businesses located within its boundaries. Employee credits, accelerated depreciation and a 0% capital gains rate are but a few of the available benefits. For questions concerning renewal communities, go to www.renewalla.com.
The State of Louisiana also offers benefits to Louisiana companies and companies considering relocation to the region. The Quality Jobs, Enterprise Zone and Industrial Tax Exemption are but a few of the available incentives. Visit the Louisiana Incentives link for further details.
Renewal Community Programs in Louisiana
The official website for the Renewal Communities in Louisiana is www.renewalla.com. For complete information visit this site. You may check to see if an address is within a Renewal Community by accessing the HUD locator on the website or by visiting the Housing and Urban Development’s Web Site at www.hud.gov.
Northeast Renewal Community CoRA
Northeast Louisiana Economic Alliance (NELEA)
PO Drawer 746
Ferriday, LA 71334-0746
Tel: (318) 757-3033 | Fax: (318) 757-4212
Contact: Michelle Boothe mboothe@nelea.us
Contact: Tana Trichel ttrichel@nelea.us
Central Louisiana Renewal Community CoRA
Northeast Louisiana Economic Alliance (NELEA)
PO Drawer 746
Ferriday, LA 71334-0746
Tel: (318) 757-3033 Fax: (318) 757-4212
Contact: Michelle Boothe mboothe@nelea.us
Contact: Tana Trichel ttrichel@nelea.us
Ouachita Urban Parish Renewal Community CoRA
Ouachita Economic Development Corporation (OEDC)
1900 N. 18th Street, Suite 440
Monroe, LA 71201-4423
Tel: (318) 387-0787 Fax: (318) 387-8529
Contact: Liz Pierre lpierre@oedc.org
Orleans/Jefferson Urban Parish Renewal Community CoRA
City of New Orleans
1340 Poydras Street, Suite 1000
New Orleans, LA 70112
Tel: (504) 658-0915 Fax: (504) 329-6149
Contact: Daphne Cola dmcola@cityofno.com
| Incentive | Description | Max per Year | Other Information |
| RC Employment Credit | Available to businesses operating in a Renewal Community (RC), which can take up to an annual tax credit of $1,500 per employee. Employers may verify their business location and employees address as being inside the RC on HUD’s Address Locator*. Available through December 31, 2009 | $1500 yr per employee | Immediate family members of business owner are not eligible. |
| Work Opportunity Tax Credits (WOTC) | A business can receive a tax credit up to $2,400 for each employee that it hires from groups that have high unemployment rates or other special employment needs, including youth aged 18 - 24 who live in an RC. (Renewal pending in Congress) | $2400-yr 1 | State certifies eligibility by a simple process using: www.hud.gov/crlocator Cannot be combined with WtW credit. |
| WOTC category for Hurricane affected employees | An eligible business owner that operated in the Katrina core disaster area may claim the credit for an eligible employee hired to work anywhere in the US during 2005 or in the core disaster area until August 27, 2007. | $2400-yr 1 | See IRS Publication 4492: Katrina employee may certify address to the employer – state certification of eligibility not required; retention credits extend to Rita and Wilma GO Zones. |
| Welfare to Work (WtW) | Two-year credit against Federal taxes for businesses that hire long-term family assistance recipients. Cannot be combined with WOTC. | $3500-yr 1 $5000-yr 2 | State certifies eligibility if rec’d Temporary Assistance for Needy Families 18 months. |
| Commercial Revitalization Deduction | Accelerated depreciation for construction or substantial rehabilitation of commercial properties in the RCs, which may include a housing component. Available through December 31, 2009 | $12 million per RC per year | State allocates the $12 million per RC per year, not to exceed $10 million for one building. Contact your local RC to apply. |
| Increased 179 Deduction | RC businesses are able to take an extra deduction of up to $35,000 on equipment purchases. RC businesses can deduct all or part of their equipment costs in the year of purchase versus deducting the expense over time. Available through December 31, 2009 | $35,000 per business | Must be RC business, limited to less than $400k of equipment purchased in a year. |
| Environmental Cleanup Cost Deduction | Businesses can elect to deduct qualified cleanup costs of hazardous substances in certain areas (“brownfields”) in the tax year the business pays or incurs the costs. (Renewal pending in Congress) | Per amount based on eligible expenditure | State must certify the release or threat of release of hazardous substances. |
| Zero % Capital Gains | Businesses in RCs that hold an asset for at least five years can sell the asset and avoid capital gains on profits. Available for assets acquired through December 31, 2009 | Per gain on sale in RCs | New “RC business” assets held at least 5 years. 35 percent of employees must be RC residents. |
| Qualified Zone Academy Bonds | State or local governments are able to issue bonds at no interest to finance public school programs. Private businesses must contribute money, equipment or services equal to 10 % of the bond proceeds. The bond purchasers receive interest payments in the form of tax credits. | $400 million US allocation | Available for public or chartered school projects where 35% of students receive subsidized lunch. |
| * Tax preparers review IRS Publication 954 to find your client’s unclaimed dollars. Locate your business’ or employees’ eligibility at HUD’s Locator at www.hud.gov/crlocator. The information contained in this summary should not be relied upon for Federal government tax purposes. Please consult your tax preparer or the IRS for official guidance. | |||
| * WOTC New Federal Legislation has extended the WOTC to August 13, 2011 and added new categories of eligible employees. | |||
| * A business in an RC can take a wage credit for an employee living in any RC. This a recent rule change. | |||
Very Important
A number of these incentives require the submission of an Advanced Notification form prior to any construction, renovation, purchasing or hiring. Failure to submit this form may disqualify you from taking advantage of the program.
The Advanced Notification form may be completed and submitted online using Louisiana Economic Developments FastLane site. Visit www.louisianaforward.com.
Enterprise Zone
The Louisiana Enterprise Zone program is a JOBS creation incentive. Businesses increasing their present workforce by at least 10% within 12 months or creating at least 5 new jobs within 24 months, may qualify. A $2,500 per job tax credit will be generated with each new job created during a 5 year period. These credits may be used to satisfy Louisiana income or franchise tax liabilities. 35% of the new jobs creating tax credits must come from one of the following four categories:
- Enterprise Zone resident;
- Receiving some form of public income or employment assistance;
- Lacking basic skills; or
- Physically challenged.
If, in addition to the JOBS creation, your company will be constructing a new facility or expanding your existing facility, you may qualify for a rebate of the 4% state sales/use tax and up to 21/2% local sales/use tax paid on materials, equipment, furniture, furnishings, etc. to be used permanently in the applicant’s facility.
Quality Jobs
The Louisiana Quality Jobs Program grants qualifying businesses, engaged in manufacturing or one of the listed industries, a refundable tax credit of up to 6% of the company’s payroll for new jobs.
To qualify for the payroll rebate, the company must be creating at least 5 new jobs, with a minimum payroll for new jobs of at least $250,000. The jobs created must pay at least 1.75 times the federal minimum hourly wage rate, or $9.01 an hour. The company must also offer a basic health care plan covering at least 85% of the total premium for full-time employees.
In addition to the payroll rebate, the company may also receive a rebate of State and local sales/use taxes paid on materials purchased for the company’s new infrastructure and on machinery and equipment purchased during the construction period and used exclusively on site.
Industrial Property Tax Exemption Program
The Industrial Property Tax Exemption program is Louisiana’s original incentive program for manufacturers’ capital investments. It may be used by companies that are new to the State or for new investments and miscellaneous capital additions to existing facilities in Louisiana. The program abates local property taxes (Ad Valorem) up to ten years on a manufacturer’s new investment and annual capitalized additions. This exemption applies to all improvements to the land, buildings, machinery, equipment, and any other property that is part of the manufacturing process. Tax exempt property must remain on the plant site at all times. The land itself is not eligible for tax exemption.
Economic Development Award Program (EDAP)
The Economic Development Award Program, administered by the Louisiana Economic Development, provides assistance for publicly-owned infrastructure to assist industrial or business development projects that promote economic development and that require state assistance. Projects must create or retain at least ten (10) permanent jobs in Louisiana.
Inventory Tax Credit
A refundable credit is allowed against income tax for 100 percent of the ad valorem taxes paid to political subdivisions in Louisiana on inventory held by manufacturers, distributors, and retailers (R.S. 47:6006). A copy of the inventory tax assessment and a copy of the cancelled check in payment of the tax must be attached to the return.
Corporate Jobs Tax Credit Program
The Corporate Jobs Tax Credit Program provides credits of up to $225 per new worker. The credits can be used to satisfy state corporate income taxes and are an alternative option to the benefits of the state’s industrial property tax exemption program and Enterprise Zone program benefits.
Workforce Development Training Program
The Workforce Development Training Program provides customized pre-employment and workforce upgrade training to existing and prospective businesses. The program can underwrite up to $250,000 of the cost of specialized training for an existing job in a specific project. For a Fact Sheet detailing the available benefits, click here.
Incumbent Worker Training Program (IWtP)
Louisiana boasts the largest existing worker training program fund in the country. The $50 million fund assists existing businesses in upgrading the skills of their employees to meet the demand for greater skill sets. The Incumbent Worker Training Program is administered through the Louisiana Department of Labor.
Freeport Law
Cargo in transit is exempt from taxation as long as it is kept intact within its smallest original shipping container. Most manufacturers can bring raw materials into the state without paying taxes on them until they are placed in the manufacturing process or shipped out of state.
Restoration Tax Abatement
Encourages restoration of buildings in special districts by abating Ad Valorem Taxes on improvements to the structure for up to ten years.
Louisiana Economic Development Corporation
The Louisiana Economic Development Corporation (LEDC) was established in July, 1988 by an Act of the Legislature. LEDC serves as the one reviewer and administrator of the Department of Economic Development’s loan, guaranty, and grant programs. LEDC administers several programs for small Louisiana businesses, ranging from loan guarantees to venture capital.
Industrial Revenue Bonds
The Louisiana Public Facilities Authority is a private publicly funded corporation that administers Industrial Revenue Bonds (IRBs) for businesses expanding or relocating to Louisiana.
Louisiana Foreign Trade Zones
Louisiana’s six Foreign Trade Zones make it possible to import materials and components into the U.S. without paying duties until they enter into the U.S. market. Goods shipped directly out of the country from FTZs are duty-free. The following are a list of Louisiana Foreign Trade Zones.
| Zone | Operator / Contact | Subzone | Port of Entry |
| FTZ No. 124 Gramercy |
South Louisiana Port Commission c/o Lisa Braud P.O. Box 909, La Place, LA 70069-0909 (985) 652-9278 Fax (985) 652-9518 |
124E Marathon Petroleum Company LLC 124F Motiva Enterprises 124G Halter Marine 124H Bollinger Shipyards 124I J. Ray McDermott, Inc. 124J Ergon St. James, Inc. |
Gramercy |
| FTZ No. 145 Shreveport |
Caddo-Bossier Parishes Port Commission c/o John W. Holt, Jr. P.O. Box 52071, Shreveport, LA 71135-2071 (318) 524-2272 Fax (318) 524-2273 |
145A AT&T | Shreveport |
| FTZ No. 154 Baton Rouge |
Greater Baton Rouge Port Commission c/o Karen St. Cyr P.O. Box 380, Port Allen, LA 70767-0380 (225) 342-1660 Fax (225) 342-1666 |
154A EXXON Mobil | Baton Rouge |
| FTZ No. 261 Alexandria |
Board of Commissioners of the England Economic and Industrial Development District 1611 Arnold Drive, Alexandria, LA 71303 c/o Sammy Bonnette (318) 449-3504 x207 c/o Jon Grafton (318) 449-3504 x214 Fax (318) 493-3512 |
Morgan City |
What’s New
The Town of Delhi recently teamed up with the Northeast Louisiana Economic Alliance to provide the local region with powerful tools that will enable the best presentation of assets suitable for economic development.
Upcoming Events
There is always something great happening in Delhi. Along with our annual Poverty Point Festival every fall, we have many other events every month.
Get in Touch
Got questions about Delhi or Richland Parish? Get in touch with us today.
Town of Delhi
P.O. Box 277
209 Broadway St
Delhi, LA 71232
Telephone: (318) 878-3792
Fax: (318) 878-3362
