The program provides a 20% tax credit for rehabilitation expenditures to a certified historic structure.

• The building must be depreciable property–rental or commercial
• Restoration must be substantial–exceeding the adjusted basis of the property (purchase price less value of the land) or a minimum expenditure of $5,000 (if the property has been depreciated)
• Rehabilitation expenditures that qualify include items directly related to the repair of the structure (architectural fees, engineering fees, paint, wiring, plumbing, roof repair, etc)
• The credit can be carried back one year and forward twenty years.
• If a building is not located within an historic district and was constructed prior to 1936, it may qualify for a 10% tax credit if restoration is substantial–exceeding the adjusted basis of the property (purchase price less the value of the land).

The Federal Historic Rehabilitation Tax Credit Program is administered by the Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism. Please contact Jessica Richardson at jrichardson@crt.la.gov or (225) 342-8160 for additional information and eligibility requirements.

• When renovation has not yet begun, five-year property tax abatement on improvements to structures is available, with a five-year option for renewal
• Existing structures in downtown, historic, or economic development districts are eligible. Spanish Town and Beauregard Town are included
• Approval must be obtained from the State Board of Commerce and Industry and the East Baton Rouge Metropolitan Council

The Five Year Property Tax Abatement on Improvements to Structures is administered by Louisiana Department of Economic Development. For additional information on rules and regulations contact Sajini Patel at spatel@la.gov or (225) 342-5340.

For historic buildings and residences located in a DDD and classified as historically significant by Louisiana Division of Historical Preservation, the state offers a 25% tax credit based on eligible costs or rehabilitation. This includes labor, materials, and related expenses.

Eligible property includes:

• Buildings must be at least 50 years old to be eligible for the State Commercial Credit
• Residential rental property or nonresidential depreciable property in a DDD
• Properties located within the boundaries of a cultural district or downtown development district are eligible to apply.
• Classified as historically significant by the state Department of Culture, Recreation and Tourism
• A credit Cap of five million dollars per taxpayer (or related entity) within any one DDD
• Credits may be carried forward for up to five years and may be sold
• A nominal application fee of $250 is paid to the State Division of Historic Preservation.

The State Commercial Historic Tax Credit Program is administered by the Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism. Please contact Jessica Richardson at jrichardson@crt.la.gov or (225) 342-8160 for additional information and eligibility requirements.

For residences located in a DDD and classified as historically significant by Louisiana Division of Historical Preservation, the state offers a tax credit up to $25,000 per structure based on eligible costs or rehabilitation.

Eligible property includes:

• Owner occupied residential or owner occupied mixed use structure
• Listed on the National Register of Historic Places
• Classified as historically significant by the state Department of Culture, Recreation and Tourism
• Located in a DDD
• Vacant (atleast 6 months) and blighted buildings atleast 50 years old
• Rehabilitation costs must exceed $20,000
• Credits are calculated using a formula based on a percentage of adjusted gross income of the owner-occupant
• A flat 25% credit is offered; additionally, If, however, a building is determined to be vacant and blighted, the credit award is increased to 50%. One of the areas of eligibility for this program, in addition to being located in a DDD, is being a vacant and blighted building at least 50 years old (vacant for at least 6 months).

The State residential Historic Rehabilitation Tax Credit Program is administered by the Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism. Please contact Jessica Richardson at jrichardson@crt.la.gov or (225) 342-8160 for additional information and eligibility requirements.

Exemptions of State and local sales tax on the sale of original, one-of-a-kind pieces of artwork

• The local sales tax exemption applies to businesses with an established location within the Cultural Product District. 
• This does not apply to businesses with no fixed locations within the district, such as businesses that would sell at festivals, fairs or other events held in the district
• "Works of art" shall mean visual arts and crafts including but not limited to paintings, photographs, sculpture, pottery, and traditional or fine crafts.
• (The Department of Culture, Recreation and Tourism may determine whether or not an item meets this definition as well as whether the item is "original, one-of-a-kind")
• The seller must complete a sales tax exemption form (R-1384)
  

The Downtown Culteral District is administered by Louisiana Department of Culture, Recreation, and Tourism. Please contact Gaye Hamilton at ghamilton@crt.la.gov (225) 342-8161 for additional information and eligibility requirements.

Traffic and sewer impact fees can be waived for eligible downtown development projects.  Some restrictions apply.  Contact the Downtown Development District at DDD2@brgov.com or (225) 389-5520.

A reimbursable, matching grant program as an incentive to owners of buildings and small businesses to improve facades is available for properties in the Downtown Development District.  This is a matching grant for funds spent on improvements to facades of commercial buildings. Eligible Facade improvements may include removing old facade structures, installing new and replacement awnings, canopies and signs, landscaping, and performing other improvements in a manner consistent with applicable regulations, codes and ordinances. Contact the DDD at 389-5520 for general economic incentive information. Small Business Facade Improvement Grant administered by the East Baton Rouge Redevelopment Authority. Contact Susan Ludwig at sludwig@ebrra.org or (225) 387-5606 for additional information and eligibility requirements.

The Gap Financing Program is designed to provide gap funding for mixed income real estate development projects and is available to certain projects in the Downtown Development District. Gap Financing will provide permanent mortgage funds for acquisition and development of new construction or existing property. Contact the DDD at 389-5520 for general economic incentive information.  Gap Financing Program administered by the East Baton Rouge Redevelopment Authority. Please call Mark Goodson at mgoodson@ebrra.org or (225) 387-5606 for additional information and eligibility requirements.

To be eligible for the program, prior notification to the Department of Economic Development is required. An applicant must file an advance notification, with the required $100 processing fee, on the prescribed form prior to starting construction purchasing or installing equipment. In December of 1995, the DDD received designation as an Economic Development Zone (EDZ). The benefits of an Economic Development Zone are as follows:

A $2,500 tax credit for each certified new job. A minimum of five new certified jobs (filled with Louisiana residents) must be created by the project within two years from the effective date of the contract. If a certified employee has been receiving payments under the Aid to Families with Dependant Children Program, an additional $2,500 tax credit may be generated if certain criteria are met.

The tax credits can be used to satisfy state income tax and state franchise tax obligations.
The tax credits may be used in the year that they are generated or rolled over for up to 10 years if a business does not have enough Louisiana state tax liability to use all the credits generated in any one year. A rebate of state sales tax on material used to construct or expand a business as well as machinery and equipment used exclusively on the site is also available.

The Economic Development Zone Status is administered by Louisiana Department of Economic Development. For additional information on rules and regulations contact Marylyn Friedkin at friedkin@la.gov or (225) 342-9228.

TIF is a method to use future gains in taxes to finance current improvements, ultimately increasing the value of surrounding real estate, and new investment. Tax Increment Financing has been used as a subsidy for redevelopment on several Downtown projects. The application of Tax Increment Financing for Downtown development is very project specific. Contact the DDD at DDD2@brgov.com or (225) 389-5520 for more information.

Application Period
Applications for 1 to 5 unit rental properties are accepted on an ongoing basis. This is subject to the availability of funds.

Basic Loan Terms

• All loans are secured by a mortgage on the rehabilitation property. Only 1st and 2nd mortgage loans will be considered.
• Lending is at 3.0% interest (annual percentage rate). Properties having at least 50% ownership by non-profit corporations may be eligible for no interest loans.
• Loan amortization terms of up to 20 years.
• No application fees, loan origination nor discount points are charged to borrowers. All costs of closing the loan are those of the borrower.
• Total mortgage debt on the property may not exceed 95% of the after-rehab value of the property, established by appraisal prior to loan closing.
• Loan financing not to exceed 95% of eligible rehabilitation costs. Owner required to invest at least 5% of the rehabilitation costs.
• No interest charged during the property rehabilitation period, for loan funds disbursed during the rehab period.
• Loan funds are disbursed on a loan draw basis, as costs are incurred.
• No prepayment penalty for early pay-out of the loan.
• Property insurance is required. City-Parish named as mortgagee on the policy.
• Title insurance is required.
• Monthly loan amortization payments. Escrow for property taxes and insurance required.

Property Requirements

• Property must be residential and may be either single-family detached or a multi-unit property of up to 5 rental units.
• Property must be located within East Baton Rouge Parish, exclusive of the corporate limits of Baker and Zachary.
• Property must be substandard by City-Parish code and must require no less than $1,000 per rental unit in repairs needed to meet code requirements.
• Property rehabilitation must conform with City-Parish code requirements and HUD Housing Quality Standards.
• Property may be vacant or occupied. If occupied, additional requirements governing tenant protections from involuntary displacement and relocation will apply under federal program regulations.
• After-rehabilitation rents must be affordable to lower/moderate income households. In some cases (HOME program financing) additional occupancy and rent restrictions may apply.

Eligible Property Rehabilitation Costs
Costs eligible for financing under this loan program include: the costs of labor and material for project construction; costs associated with closing this loan (e.g., legal fees, recordation, title policy, appraisal); related soft costs such as design services, and interim construction loan interest costs if applicable. If the owner serves as contractor for some or all of the property repairs, financing does not include owner's labor or construction profit.

• No rehab work may commence prior to loan closing. Projects started before loan closing are ineligible for financing.

Affordable Housing Obligations
The HOME and CDBG Programs that are the sources of financing for these loans include requirements governing the rental of properties that are financially assisted. Requirements may vary depending upon the source of funds made available for each approved loan. The source of funds for approved loans will be determined by OCD according to the particulars of each project, the availability of funds under each program, and its determination as to which loan source best meets the interests of the program.

Property Ownership
Applicants may be individuals, partnerships or corporations. Loans involving second mortgage financing may require loan guarantees by the appropriate parties.

Occupied Property
If an application involves occupied rental property, the existing tenant is afforded certain protections against involuntary displacement as the result of any loan financing provided through this program. Upon acceptance of a loan application by OCD for further loan consideration, the loan applicant will be required to provide notice to any such tenant-occupant. The form of the notice will be issued by OCD. In summary, it provides notice that the property is being considered and the tenant's right to remain (subject to the tenant remaining in full compliance, with his/her lease).
In the event that the loan applicant intends to temporarily relocate a tenant during the rehab construction, all costs of such relocation must be borne by the owner. Applications involving planned permanent relocation of the tenant from the rehab property will not be considered.

Affirmative Fair Housing Marketing
Property owners receiving rehabilitation assistance shall ensure that the rehabilitated units will be marketed for rent in a manner to affirmatively further fair housing practices. The Equal Opportunity/Fair Housing logo shall be displayed in advertisements for rent. Owners must agree not to discriminate against tenants solely because they are receiving rental subsidy assistance, or are qualified for the same.

Historic Preservation
If a project qualifies for assistance and is, or potentially is, historically significant or within an historic district, additional state and federal property rehab review requirements must be satisfied before the project can receive assistance.

Loan Financing
The program does not provide for any refinancing of existing debt. Financing is for eligible rehab costs only, and is not generally available for purchase financing.

Nonprofit Organizations
Rental projects undertaken by nonprofit organizations [501(c) corporations as determined by the Internal Revenue Service] are eligible for no interest loan financing and a reduction in the required percentage of owner investment in rehab costs. Some purchase financing may be available for qualified non profit. In such cases, the organization should submit a written proposal, fully describing the project and its’ financing. Such proposals will be separately considered on a case-by-case basis.

For additional information contact the Downtown Development District at DDD2@brgov.com or (225) 389-5520, or the Office of Community Development at (225) 389-3039.

The Digital Media and Software Incentive provides a tax credit of 25% of qualified production expenditures for state-certified digital interactive productions in Louisiana and 35% tax credit for payroll expenditures for Louisiana residents.

Benefits

• 25% tax credit for digital interactive media expenditures made in Louisiana
• a 35% tax credit on payroll expenditures for Louisiana residents
• No annual cap on tax credits
• The tax credit can be sold or applied against Louisiana tax liability

Eligibility
Louisiana's Digital Media and Software Incentive is available to businesses in the digital media and software industry that develop products including video games, simulation/training software and social media applications.

This tax credit does not apply to software developed for institutional, private or internal purposes, or largely static Internet sites designed to provide information about a person, business, company or firm. The tax credit does not apply to products regulated under the Louisiana Gaming Control Law.

The Digital Media Software Incentive is administered by Louisiana Department of Economic Development. (225) 342-3000.

In addition to the aforementioned incentives, the Downtown Development District is currently working with the City of Baton Rouge, East Baton Rouge Redevelopment Authority, and private sector partners to design new incentives for downtown development.  As new resources such as New Markets Tax Credits and Mezzanine Financing Equity become available, the DDD will be even better equipped to meet the needs of serious investors in our marketplace.  Stay tuned for new updates and announcements regarding economic incentives for Downtown.

For additional information contact the Downtown Development District at DDD2@brgov.com or (225) 389-5520.