Low Taxes and Competitive Business Costs for Agribusiness
Agribusiness companies in Louisiana benefit from the state’s competitive cost environment, including low taxes and highly competitive incentives.
Louisiana Offers Competitive Business Taxes
Louisiana’s low-tax environment offers business operations 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's tax burden ranks among the top 10 lowest in the nation for new facilities, relocations, and facility expansions for a variety of firm types, including:
- labor-intensive manufacturing
- capital-intensive manufacturing
- research and development facilities
- corporate headquarters
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.
Flexible, Customizable Incentive Packages Are Available
Louisiana offers highly competitive incentives to attract, grow and retain agribusiness operations throughout the state. In particular, the state’s Quality Jobs program provides up to a 6 percent cash rebate of annual gross payroll for new, direct jobs that meet minimum qualifications, for up to 10 years.
Attracted by Louisiana’s competitive incentives, Drax Biomass began talks with the state in January 2012 about its plans for a wood pellet facility. Drax is a development and operating company focused on manufacturing wood pellets for renewable, low-carbon power generation from sustainable biomass. The state offered Drax a custom incentive package that included a $1.7 million Economic Development Loan Program commitment that will not require repayment if the company meets payroll performance obligations. Drax will receive the services of LED FastStart® at no cost and is expected to use Louisiana’s Quality Jobs and Industrial Tax Exemption program incentives as well.