Low Taxes and Competitive Business Costs for Aerospace
Louisiana’s low-tax environment offers manufacturers significant cost savings. According to a 50-state analysis by the Tax Foundation and KPMG: Location Matters: The State Tax Costs of Doing Business, Louisiana ranks as the lowest tax burden for new facilities, relocations, and facility expansions for both capital-intensive and labor-intensive manufacturing operations in the U.S. The total effective tax rate (based on all state and local taxes including income tax, franchise tax, sales tax and property tax) is less than one percent.
A location in Louisiana can reduce company costs because of the state’s low industrial electricity rates — 2016 rates averaged approximately 25 percent below the national average.
Louisiana’s industrial natural gas rates are also highly competitive, with the state’s 2016 rates averaging the lowest in the South and approximately 17 percent below the national average.