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Economic Incentives

For general information regarding economic incentives or available lease space, contact the DDD at DDD2@brla.gov or (225) 389-5520.

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. For more information, visit their website at https://www.opportunitylouisia...

Federal Historic Rehabilitation Tax Credit

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

  • Building must be listed in the National Register of historic Places or certified as contributing to the significance of a registered historic district.
  • 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 work must be done according to the Secretary of the Interior's Standards for Rehabilitation.
  • After rehabilitation, building must be depreciable (income-producing) for at least five years. Owner occupied residential properties are not eligible.

All federal historic preservation certification applications must be submitted electronically, both new applications submitted to the Louisiana Department of Culture, Recreation, and Tourism Division of Historic Preservation and materials submitted directly to NPS in response to request for additional information. Forms are available on the Technical Preservation Services website.

State Commercial Historic Tax Credits (Sunsets December 31, 2028)

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. The program sunset date has been extended to December 31, 2028.

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
  • Properties individually listed in the National Register or contributing to a National Register Historic District.
  • 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 Andrea McCarthy at (225) 342-8160 or amccarthy@crt.la.gov for additional information and eligibility requirements.

New Market Tax Credit (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 the DDD at (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 the Downtown Development District at (225) 389-5520 for more information.

Opportunity Zones

The Opportunity Zone Program is a a community development program established by Congress in the Tax Cuts and Jobs Act of 2017. This federal capital gains tax incentive program is designed to drive long-term investments to low-income communities. The law provides a federal tax incentive for investors to re-invest their capital gains into Opportunity Funds, which are specialized vehicles dedicated to investing in designated low-income areas. The One Big Beautiful Bill (OBBB) signed into law July 2025 will strengthen the program and make the tax incentive permanent. The OBBB ends the sunset clause, mandates new zone designations every ten years, and directs capital toward distressed and rural communities.

There are 150 census tracts in Louisiana that are qualified opportunity zones. These will sunset December 31, 2028. The qualifying census tracts have already been designated and approved. Louisiana’s 150 tract recommendations were determined based on a strategic review of feedback from local, state and federal elected officials; economic and community development organizations; private developers; private equity firms; non-profit organizations; churches; and individuals.

The Louisiana Opportunity Zone Map

Please more information visit LED's website at https://www.opportunitylouisia...

Brownfields Assessment Assistance

The City of Baton Rouge and Parish of East Baton Rouge were awarded Brownfields Community Wide Assessment funding by the Environmental Protection Agency (EPA) to conduct Phase I and Phase II environmental site assessment and cleanup plans.

The Brownfields Program Process Guide for Property Owners and Stakeholders lays out the steps involved in the assessment and cleanup planning process, and how to apply.


The Brownfields Assessment Assistance Program is administered by East Baton Rouge City-Parish Planning Commission. To participate in the Brownfields Program, please reach out to their office at (225) 389-3144 to determine eligibility.

Downtown Cultural District

The Louisiana Cultural Districts Program was created to spark community revitalization based on cultural activity through tax incentives, technical assistance, and resources. The Downtown Cultural District offers exemptions of 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 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 the DDD at (225) 389-5520 or Francesca Vega at fvega@crt.la.gov or (225) 342-8161 for additional information and eligibility requirements.

Capital Area Financing Authority


Economic Development & Redevelopment

The Capital Area Finance Authority (CAFA) provides economic and redevelopment activities in order to promote the health, safety, welfare and economic well-being of the citizens and businesses in East Baton Rouge Parish, as well as four other parishes. CAFA offers several development tools and incentives to the following project areas and partners; Commercial Development, Non-profit Entities, Governmental Entities, Multi-Family Housing.

CAFA Development Tools/Incentives

  • Payment in Liew of Taxes (Pilot Program) - A PILOT has the effect of lowering the operating costs of a project during the term of the PILOT by reducing the amount of local property taxes paid by the development. For a PILOT to occur, CAFA must be the owner of record of the property and the improvements to the property. This public ownership is what allows the property to be exempt from local property taxes. LA R.S. 51:1160 allows CAFA to negotiate a PILOT in an amount up to what the ad valorem taxes would have been if CAFA did not take title to the subject property and the improvements thereon. The PILOT must be approved by resolution of the parish governing authority whose jurisdiction includes the development.
    CAFA leases back the property to the developer for the duration of the PILOT (usually 15-20 years). CAFA requires that a PILOT Administrative Fee be paid annually through the execution of a Memorandum of Understanding (MOU). The PILOT Administration Fees paid to CAFA must be included in the cost of operation of the development. Upon completion of the PILOT term, CAFA deeds the property and improvements back to the developer. At that time the local property taxes calculated on the value of the improved property will take effect. It may be beneficial for a developer to phase in the increased property tax requirement over the last few years of the PILOT term.
  • Sales Tax Exemption from Construction Materials - Projects may also apply for a sales tax exemption for construction materials. Public ownership of the property by CAFA is what allows the construction materials to be exempt from State and Local sales taxes. CAFA is required to designate a Contractor chosen by the developer as its Agent for the purpose of making sales tax-exempt purchases on its behalf. CAFA will handle all administrative aspects required to obtain this exemption.
    CAFA requires that a portion of the sales tax savings be remitted to CAFA in an amount negotiated through the execution of a Memorandum of Understanding (MOU).
  • Bond Financing - CAFA may act as an issuer of taxable or tax-exempt bonds through either public sale or private placement. CAFA may act as a conduit issuer of tax-exempt or taxable private activity bonds for private use, within the confines of CAFA’s Trust Indenture and Public Trust Laws, such as financing of infrastructure for a development.
  • Loans - Construction Loans for short-term financing are available for a new house or rehab or other real estate development projects before long term financing is available. Such loans must be within the confines of CAFA’s Trust Indenture and Public Trust Laws and in keeping with CAFA’s Mission. Terms and conditions are negotiated and may differ by project type. Line of Credit – CAFA will consider a line of credit for a maximum amount for a set period of time for projects within the confines of CAFA’s Trust Indenture and Public Trust Laws and in keeping with CAFA’s Mission. Terms and conditions are negotiated and may differ by project type.

For more information please visit the CAFA website.

LED Economic Incentives and Business Programs

In addition to the aforementioned incentives, the Louisiana Economic Development (LED) has multiple incentives for Louisiana Businesses.

  • LED Faststart
  • Angel Investor Tax Credit
  • Research & Development Tax Credit
  • Digital Interactive Media and Software Program
  • Industrial Tax Abatement
  • High Impact Jobs
  • Opportunity Zones
  • Motion Picture Production Program

State Small Business Special Programs

  • Bonding Assistance Program
  • Small and Emerging Business Development Program
  • State Small Business Credit Initiative
  • STEP
  • Pathway to Assist Veteran Entrepreneurs
  • CEO Roundtables
  • Strategic Research
  • Hudson Initiative
  • LA Contractors Accreditation Institute
  • LA Veterans First Business Initiative

For additional information visit the Louisiana Economic Development website at www.https://www.opportunitylouisia...

Small Business Administration Hub Zones
The Historically Underutilized Business Zones (HUBZone) program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones - “HUBZones” - through the establishment of preferences.

To successfully qualify and gain certification as a HUBZone small business, an organization must meet all the following criteria.
  • Have a principal office located in a HUBZone
  • 35% of business employees live in a HUBZone
  • Qualify for Small Business Status and is not currently park of the HUBZone small business program.
  • At least 51% owned by U.S. citizens, a Community Development Corporation, and Agricultural Cooperative, a Native Hawaiian Organization, or a Native American Tribe.
For more information, visit the SBA website or email hubzone@sba.gov

The HubZone Map

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@brla.gov or (225) 389-5520.