Louisiana Program Enhancements
Louisiana’s Governor, Bobby Jindal signed into law the following program enhancements as part
of the Governor’s 2011 Legislative Package:
Angel Investor Tax Credit
Effective July 8, 2011, House Bill 597 restarts the Angel Investor Tax Credit program that expired
at the end of 2009. The new legislation makes the program effective from Jan. 1, 2011,
through July 1, 2015. The program provides a transferable tax credit set at 35 percent
of the amount of the investment, up to $1 million per year, in a entrepreneurial business
with the credit divided into five equal yearly portions. The tax credit available
in the first year is deductible in the tax year that occurs 24 months from the date
the department certifies the amount of the investment, with subsequent amounts deductible
each year thereafter. The amount of credits granted each year is capped at $5 million.
Quality Jobs Program
Effective August 15, 2011, the Quality Jobs program has been extended through 2017, for companies
that operate in one of the state’s targeted business sectors or that bring sales from
out of state can qualify for payroll rebates of 5 percent or 6 percent for up to 10
years. In addition, Quality Jobs provides for a 4 percent sales tax rebate on capital
expenditures or a 1.5 percent investment tax credit. No new applications will
be received on or after January 1, 2018 for incentive tax credits or rebate approvals.
However, an employer with approval prior to that date can continue to receive the
incentives pursuant to the terms of the original agreement.
Research and Development Tax Credit
Effective August 15, 2011, Senate Bill 135 extends the tax credit from December 31, 2013 through
December 31, 2019. Larger companies can qualify for an 8 percent tax credit,
while smaller companies (50 to 100 employees) can qualify for 20 percent tax credits
and still smaller, emerging R&D firms can obtain a tax credit of up to 40 percent.
Digital interactive Media & Software Tax Credit
Effective August 15, 2011, Senate Bill 123 enhances the Digital Media incentive by offering
a refundable, rather than a transferable credit. The Digital Media tax credit program
offers tax credits of 25 percent on qualified interactive software production in entertainment,
healthcare, engineering and other sectors. Payroll expenses for Louisiana residents
engaged in that work can be eligible for a 35 percent credit.
Technology Commercialization & Jobs Tax Credit
Effective July 6, 2011, Senate Bill 134 extends the Technology Commercialization bill another
six years through 2017. The Technology Commercialization program offers tax credits
of 40 percent on up to $250,000 a year in research tied to Louisiana higher education
campuses. Those research companies may apply for a 6 percent payroll rebate on qualified
This weblog is sponsored by TALX.