Enterprise Zone Tax Credit

Possibly. A business has to create net new jobs for the state of Louisiana. A net new job is a position created on or after the contract effective date, which is in addition to the number of jobs in the employment baseline established statewide including affiliates. For example:

• If a business reduces its workforce by 50 employees at one site and adds 50 jobs at another site, then there is no new net gain of jobs to the state.
• On the other hand, if a business reduces its workforce by 25 jobs at one site and increases the workforce by 50 jobs at the EZ site, then there is a net increase of 25 jobs to the state.

A net new job is a job created on or after the start date of the Enterprise Zone project with no anticipated end date and falling within the period commencing 45 days prior to the contract effective date and ending five years after the contract effective date. For example:

• Thibodeaux Candy Manufacturers Inc. is starting a new line of candy. They will invest in manufacturing equipment to produce their new candy line. Each candy manufacturing line needs five employees, thus their new line will call for the creation of five new jobs. The new jobs created and filled will be considered permanent jobs since the company is expecting to make this type of candy for a long time and intends to maintain their statewide employment levels.
• Thibodeaux Candy Manufacturers Inc. needs additional employees to fill their Valentine’s Day orders. They hire 20 employees to complete their special orders. After the Valentine’s Day orders are filled and shipped, Thibodeaux Candy Manufacturers Inc. will dissolve the new positions and the 20 employees hired to complete the special order will no longer have jobs. These are not permanent net new jobs because there is not a continuing need for the jobs to be filled.

NO. When a business acquires another business, the jobs that were at the purchased business are not considered new jobs for the new business owner. They must be net new jobs to Louisiana. For example:

• Thibodeaux Candy Manufacturers Inc. has acquired Sweet Home Candies LLC, a local company with 33 existing jobs. Thibodeaux Candy Manufacturers Inc. plans to make some modifications to the structure of Sweet Home Candies LLC and retain the jobs. The 33 jobs retained by Thibodeaux Candy Manufacturers Inc. are not net new jobs.

Includes construction, purchase of equipment, building and materials, hiring, and other eligible capital investment transactions. If applying only for the job tax credits under the limited time expanded program eligibility, you may proceed with filing the application immediately after filing the advance notifications. 

If seeking local sales tax incentives, contact the local governing authority to request an endorsement resolution. 

Contact the Louisiana Department of Revenue (LDR) to apply for a sales and use tax registration certificate and taxpayer account number. 

Contact the Louisiana Workforce Commission to apply for an unemployment identification number. 

Upon completion of project, submit application with fee no later than 90 days after project completion date. 

Upon receipt of application and fee, LED will review application for compliance, verify submitted information, and provide a copy of the application for review to LDR. Upon approval by LDR, application is presented for consideration to the Board of Commerce & Industry.

Note: If LDR issues an objection, applicant will have six months to contact LDR to resolve the objection. If the objection is not resolved, the application may be canceled. 

Application is presented for consideration to the Board of Commerce & Industry. Applicants will be notified within seven days of the board meeting with instructions, time and location of meeting. Applicants should have someone present to answer questions the Board may have regarding information contained in the application. (The board convenes every other month, meeting six times a calendar year.) 

Upon application approval by the Board of Commerce & Industry, a contract will be sent electronically from LED to the designated contract signatory via Adobe Sign. Contract should be reviewed and signed, within 60 days of receipt. Please note, on the signature page, the company contact refers to an employee of the company. A fully executed contract with the governor’s signature will be emailed to you. 

Reports are to be completed and filed by May 31 after contract has been signed by the Governor, and annually, by May 31 thereafter. ECRs are accepted throughout the year. Compliance must be illustrated prior to any benefits being issued.

Note: Appropriate form(s) specific to a contract must be used (forms may be downloaded from the document checklist in Fastlane, completed and uploaded in the ECR).

All benefits are issued by Louisiana Department of Revenue. Sales & Use Tax Rebate and Investment Tax Credit must be applied for on LDR’s website. 

File with LED within six months of the date adjacent to the Governor’s signature. 

File with LED within six months of the date adjacent to the Governor’s signature. 

When all documentation has been filed and LED has certified compliance, submit rebate claim or refundable ITC request to LDR. Contact Office Audit Division at 225.219.2270 for additional information. (Sales and Use Tax Rebate or Refundable Investment Tax Credit.) 

Once under contract, if any changes are made (such as change in name, change in ownership) the appropriate contract amendment and fee must be submitted in FastLane within 90 days of change. The contract amendment must be approved by the Board of Commerce & Industry.