ECONOMIC INCENTIVES

For general information regarding economic incentives or Available Lease Space contact the DDD at DDD2@brgov.com or (225)389-5520


FEDERAL HISTORIC REHABILITATION TAX CREDIT

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 TourismPlease contact the CRT tax incentive program staff at (225) 342-8160 for additional information and eligibility requirements. 


RESTORATION TAX ABATEMENT PROGRAM FOR IMPROVEMENTS TO STRUCTURES

  • » 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 Restoration Tax Abatement Program is administered by Louisiana Department of Economic Development. Contact Becky Lambert at Becky.Lambert@la.gov or (225) 342-6070 for additional information and eligibility requirements.


STATE COMMERCIAL HISTORIC TAX CREDITS (RENEWED)

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 TourismPlease contact the CRT tax incentive program staff at (225) 342-8160 for additional information and eligibility requirements. 


STATE RESIDENTIAL HISTORIC REHABILITATION TAX CREDITS

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 TourismPlease contact the CRT tax incentive program staff at (225) 342-8160 for additional information and eligibility requirements. 


DOWNTOWN CULTURAL DISTRICT

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 Cultural 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.

Development Impact Fee Waivers

 


NEW MARKET TAX CREDITS (NMTC)

As one of the most powerful tools in community revitalization, the New Markets Tax Credit (NMTC) program provides investors with federal tax credits for making investments in a wide range of redevelopment projects located in low-income communities. Please contact Gabriel Vicknair at gvicknair@brgov.com or (225) 389-5520 for more information.

ECONOMIC DEVELOPMENT ZONE STATUS

The Enterprise Zone, or EZ program is a jobs incentive program that provides Louisiana income and franchise tax credits to a new or existing business located in Louisiana creating permanent net new full-time jobs, and hiring at least 50% of those net new jobs from one of four targeted groups. The benefit provides:

Either a one-time $3,500 or $1,000 tax credit for each net new job created.

A 4% rebate of sales and use taxes paid on qualifying materials, machinery, furniture, and/or equipment purchased or a 1.5% refundable investment tax credit on the total capital investment, excluding tax exempted items. The 4% or 1.5% rebate shall not exceed $100,000 per net new job.

The Economic Development Zone Status is administered by Louisiana Department of Economic Development. Please contact Gabriel Vicknair at gvicknair@brgov.com or (225) 389-5520 for more information.


TAX INCREMENT FINANCING (TIF)

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. Please contact Gabriel Vicknair at gvicknair@brgov.com or (225) 389-5520 for more information.


DIGITAL MEDIA AND SOFTWARE INCENTIVE

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.

For more information please contact Jared Smith at the Baton Rouge Area Chamber – 225.381.7136, jsmith@brac.org.


ADDITIONAL INFORMATION

In addition to the aforementioned incentives, the Downtown Development District is currently working with the City of Baton Rouge, Baton Rouge Area Chamber, Louisiana Economic Development and private sector partners to design new incentives for downtown development. 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.

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