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 10 years manufacturer’s qualifying capital investments.
- 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 automotive industry. The incentive is applicable to customer-facing software including automotive-specific applications like powertrain, transmission and chassis control; telematics; infotainment; power control systems; and other embedded systems. Eligible projects receive up to a 35 percent refundable tax credit for payroll expenditures and up to a 25 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.