Louisiana Enterprise Zone Program Update
Louisiana Economic Development (LED) issued new rules for the Louisiana Enterprise
Zone Program, along with updated Enterprise Zone Program Employee Certification Report
(ECR) Instructions. The new rules and ECR instructions are effective as of January
20, 2011, for all Advance Notifications received on or after the effective date.
If Advance Notifications were filed prior to January 20, 2011, the old Rules will
govern the application, contract, ECR, etc. The LED is still in the process
of updating their procedural guidance for the regulation changes and will provide
program Standard Operating Procedures (SOP) in the next six months.
Zone (EZ) program is a jobs incentive program that provides Louisiana income and franchise
tax credits to a business hiring at least 35% of net new jobs from one of four targeted
groups. The program provides a one-time $2,500 credit per new job as well as
either a 4% sales and use tax rebate or a 1.5% refundable Investment Tax Credit.
following information highlights the changes/updates:
be eligible for the program a minimum of 5 net full-time jobs must be created
(previously 5 full-time or part-time jobs).
35% minimum certification requirement must be maintained annually for the length of
Job Tax Credits can be earned in a period where the 35% minimum is not met.
official of the company must sign the ECR; LED will no longer allow consultants/3rd party
vendors to sign using a power of attorney.
certify an employee using the workforce assistance category, documentation is needed
from the Louisiana Workforce Commission (LWC).
baseline employment has been updated.
calculation of net full-time jobs has been updated.
information is required when certifying using category A-Residency.
extended deadline for filing the annual ECR is May 31st.
project period is now 30 month, plus a 6 month automatic extension.
option to terminate a contract is now available.
waiver of penalty/interest for cancelled contracts is no longer available.
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