If your company is hiring employees and investing in its infrastructure, your company may be eligible to reap tax savings for those activities through tax-incentive programs offered by the State of Louisiana.
How valuable could they be? Let’s use the Louisiana Enterprise Zone program as our first example. Let’s say a small machine shop is going to spend $90,000 on a new piece of equipment and needs $20,000 in renovations to accommodate the expansion, as well as hire two new employees to run the machine. That company could receive $5,000 in tax credits ($2,500 per new employee) to offset its corporate franchise and income taxes, as well as a cash rebate of up to $4,400 — money that could be invested back into the business. That’s a total of $9,400 in potential savings.
But that’s not the only incentive program on the table. For companies in certain service sectors such as the oil and gas industry who create at least 5 new jobs that pay at least $14.50 per hour, the Quality Jobs program would still allow for a state sales tax rebate. The difference is that the jobs benefit increases to 5% or 6% of the new annual payroll generated for up to 10 years, and it’s returned in a rebate check.
If the company is legally considered a manufacturer, the Industrial Tax Exemption program may allow a company to invest in new buildings and equipment while freezing the assessed property tax value at the pre-investment level for up to 10 years.
Are there qualifying factors? Yes. Are there specific steps to follow to receive these tax credits and rebates? Yes. Should these programs be explored before any dollars are spent or employees hired? Absolutely. KGT Services can confidentially discuss your company’s hiring needs and investment plans, and discuss your company’s eligibility for these and other programs. Call 985-855-3834 for a free consultation.
Shared by KGT Services. Katherine Gilbert-Theriot assists companies with tax-incentive filings and other business services; visit www.kgtservices.com or call 985-855-3834 for more information.