Revved Up Business Incentives for the Automotive Industry
Automotive manufacturers will find a suite of highly competitive incentives designed to help their operations thrive in Louisiana.
- For competitive projects that involve substantial new-job creation, major investment and the majority of sales to out-of-state customers, Louisiana’s new Automotive Manufacturing and Automotive Component Manufacturing Payroll Incentives can provide up to a 15 percent payroll rebate over 10 years. Additionally, a participating company will be eligible for either a rebate of state sales and use taxes on capital expenditures or a 1.2 percent project facility expense rebate.
- Louisiana offers the Industrial Tax Exemption Program, which provides up to 100 percent property tax abatement for up to eight years on an manufacturer’s new investment and annual capitalized additions.
- In addition, the Digital Interactive Media and Software Development Incentive — the nation’s strongest, most comprehensive incentive for software development — provides a unique advantage to the aerospace industry. The incentive is applicable to customer-facing software, including aerospace-specific applications like navigation, communications, radar, defense and other embedded systems. Eligible projects receive a 25 percent refundable tax credit for payroll expenditures and an 18 percent refundable tax credit for qualified production expenditures. If the amount of tax credits exceeds the business’ state income and franchise tax liabilities, the business receives the balance as a refund.
Louisiana values business investment, and when a company moves or expands its automotive operations here, it can count on innovative solutions to meet the project’s specific needs. For competitive projects that involve substantial new-job creation, major investment and the majority of sales to out-of-state customers, Louisiana is agile and flexible — customizing incentives and workforce solutions, aligning state and local resources, connecting a company with valuable assets, and coordinating permitting and startup activities to ensure that operations proceed smoothly and on schedule.