Enterprise Zone Tax Credit

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 program sunsets 6/30/2025. No new advances are accepted after 6/30/2025.* Eligibility This incentive program is open to Louisiana businesses (new or existing) that will: Create a minimum of five permanent net new full-time jobs within 24 months of their project start date or increase their current nationwide workforce by 10% within the first 12 months. Hire 50% of the net new jobs created from one or more of the certification requirements from these targeted groups: Residents: someone living in Enterprise Zone within the state. Enterprise Zone listing by Parish – 2010  (the 2010 listing should be used for Advance Notifications received on or after July 1, 2013) Enterprise Zone Listing by Parish – 2020 (the 2020 listing should be used for Advance Notifications received on or after April 24, 2024) People receiving an approved form of public assistance. People lacking basic skills. A person performing below a ninth grade proficiency in mathematics. People unemployable by traditional standards. Contact Us 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 , 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 following employers or persons shall not be eligible to participate in the program: Employers engaged in the gaming industry or residential developments Churches Retail employers assigned NAICS Code Sections 44 and 45 Employers assigned NAICS Code Sections, 721, 722 and 5613 Program Statutes & Rules: All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register. View the  Enterprise Zone Statutes View the  Enterprise Zone Rules Go to Part I, Chapter 7 Eligibility Scenarios If I am an existing business in Louisiana with multiple facilities located throughout the state and I reduce the workforce at one site and increase the workforce at another site with an Enterprise Zone (EZ) contract, would those jobs created at the EZ site be eligible as net new jobs? Possibly. A business has to create net new jobs for the state of Louisiana. A net new job is a position created on or after the contract effective date, which is in addition to the number of jobs in the employment baseline established statewide including affiliates. For example: If a business reduces its workforce by 50 employees at one site and adds 50 jobs at another site, then there is no new net gain of jobs to the state. On the other hand, if a business reduces its workforce by 25 jobs at one site and increases the workforce by 50 jobs at the EZ site, then there is a net increase of 25 jobs to the state. Production at my company fluctuates due to our business industry. How do I know if I am creating permanent net new jobs during our various seasons of production? A net new job is a job created on or after the start date of the Enterprise Zone project with no anticipated end date and falling within the period commencing 45 days prior to the contract effective date and ending five years after the contract effective date. For example: