Incentives Watch: Louisiana Enacts Slew of New Incentives for Businesses

Louisiana has recently enacted a number of new incentive programs for businesses. One incentive, the Corporate Headquarters Relocation Program, provides a rebate of 25 percent of costs related to the relocation of corporate headquarters, according to Bloomberg BNA’s Weekly State Tax Reportarticle.

The relocation costs that are eligible for the rebate include actual, direct, and substantiated costs incurred by a qualified business to relocate a headquarters to Louisiana, including capital expenditures and leasing costs for a facility and equipment, and personnel relocation costs, the article noted.

The District of Columbia, Georgia, Indiana, Kansas, Mississippi, South Carolina, Tennessee, West Virginia, and Wisconsin also offer corporate headquarters relocation tax incentives, according to Bloomberg BNA’s State Tax Portfolios.

Louisiana also enacted the Competitive Projects Payroll Incentive Program, which provides a rebate of up to 15 percent of new payroll for certain businesses. To be eligible for the rebate, the business must be primarily engaged in the manufacturing of durable goods or pharmaceuticals, conversion of natural gas to refined fuels, or data services, according to the Bloomberg BNA's Weekly State Tax Report article.

A third incentive enacted in Louisiana allows certain businesses, with at least 50 percent of total annual sales outside of the state, to apply to use a single sales factor apportionment method in Louisiana, according to Bloomberg BNA’s Weekly State Tax Reportarticle.

In other developments . . .

Iowa enacted two new tax credits – one for the installation of geothermal heat pumps and one for the installation of solar energy systems, according to a recent Bloomberg BNA Weekly State Tax Reportarticle.

Complied By: Kathleen Caggiano 

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