For general information regarding economic incentives or available lease space, contact the DDD at DDD2@brla.gov 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 income producing
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 jointly by the National Park Service and the Internal Revenue Service. The Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism acts as an applicant's first point of contact. Please contact Andrea McCarthy at (225) 342-8160 or amccarthy@crt.la.gov 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 (Sunsets January 1, 2029)

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 January 1, 2029.

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 Andrea McCarthy at (225) 342-8160 or amccarthy@crt.la.gov for additional information and eligibility requirements.

LED Economic Incentives and Small Business Programs

Expanding? Relocating? Starting up? Louisiana's tax credits and incentive programs can give your company a competitive edge. From entrepreneurial startups to small and large business growth and expansion, Louisiana offers a comprehensive array of educational, managerial and financial programs that cultivate business opportunities.

Visit Louisiana Economic Development - https://www.opportunitylouisiana.com/business-incentives or contact the DDD ddd@brla.gov or (225) 389-5520 for more information.

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.

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.

Enterprise Zone Tax Credit

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 rebate of state 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 rebate shall not exceed $100,000 per net new job.

The EZ program is administered by Louisiana Department of Economic Development. Please contact Joyce Metoyer at 225.342.0485 or joyce.metoyer@la.gov

Opportunity Zones

Opportunity Zones are a community development program established by Congress in the Tax Cuts and Jobs Act of 2017. This new federal capital gains tax incentive program is designed to drive long-term investments to low-income communities. The new 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.

There are 150 census tracts in Louisiana that are qualified opportunity zones. These low-income tracts were nominated by Gov. John Bel Edwards and certified by the Secretary of the Treasury. 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. LED’s review and comprehensive analysis considered the following factors:

the potential for development based on known certified sites, tracts of land, or buildings within the eligible census tract
proximity to regional assets (ports, airports, industrial parks, tech parks, colleges and universities, etc.)
opportunities to leverage other designations such as NMTC or Enterprise Zones
that coverage included a mix of tracts - some with high potential for economic development and others with high potential for community development (e.g. affordable housing, redevelopment, mixed use real estate, and any other types of quality of place enhancements)
the end goal to ensure a fair and balanced distribution of zones across each of the eight economic development regions of the state
the end goal to ensure adequate coverage in both rural and urban areas.

The Louisiana Opportunity Zone Map

Please contact the DDD at (225) 389-5520 for more information.

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

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.

Digital Interactive Media and Software Program

The Digital Media and Software Incentive provides a tax credit of 18% of qualified production expenditures for state-certified digital interactive productions in Louisiana and 25% tax credit for payroll expenditures for Louisiana residents.

Benefits:

18% tax credit on qualitied production expenditures
25% tax credit on payroll expenditures for Louisiana residents
No annual cap and no minimum requirement
Tax credit can be applied to state income tax liability and the state will refund any overages OR applicants can opt for 85% of the value earned as a rebate any time during the year.

Eligibility:

Louisiana’s Digital Media and Software Incentive is available to businesses in the digital media and software development companies of all sizes. Only work physically performed in Louisiana and only direct development equipment purchased through Louisiana businesses qualifies for the incentve.

All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register. For rules, choose Title 61, Revenue and Taxation, and go to Part 1, Chapter 67,

For more information please visit the Louisiana Entertainment website

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.