Louisiana has the nation’s strongest, most comprehensive incentive for software development. Companies starting up, expanding or relocating in the state can 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.
The power of this statutory software development incentive is evident in its scope. Louisiana’s incentive is the only program in the nation dedicated wholly to software development, with no industry- or content-specific restrictions.
- Enterprise Solutions: CRMs, MISs, ERP/ERMs, HRMs, CMs
- Consumer: Interactive, experiential and off-the-shelf products
- Applications: App development of all kinds, across all platforms
- Analytics: BI, Big Data Tools
- Services: SaaS, PaaS, ITaaS, BaaS
- Gaming: Gaming across all platforms
- Embedded: Firmware and systems software
- Visualization Programs
Unlike cumbersome programs in other locations, Louisiana’s incentive is versatile, enabling software development companies to leverage it to meet their specific needs.
- Convenience: LED serves as the central, one-stop-shop in administering the incentive program.
- Ease: The incentive application process is straightforward and clean.
- Transparency: Every company receives a master qualification certificate that serves as the comprehensive incentive summary.
- Scalability: There are no minimums or caps, and the incentives grow as new employees and projects are added.
- Flexibility: Companies may opt to receive their benefits more quickly than the year period, providing a sustainable and accessible cash flow mechanism.
In addition, Louisiana also offers the Quality Jobs program, which provides up to a 6 percent cash rebate of annual gross payroll for new, direct jobs for up to 10 years.
Flexible Incentive Packages Meet Project Needs
LED’s project teams will work with you to develop a customized incentive package to fit your project’s specific needs.
- Global Delivery/Services Center: The Digital Interactive Media and Software Development Incentive provides global delivery and services centers with significant, sustained cost savings on both payroll and production. Through the state’s scalable incentives, a Louisiana-based center provides higher margins, lower risk and a sustained competitive advantage. Additionally, this incentive can be stacked with the Quality Jobs program, which offers a 5 percent or 6 percent rebate on non-software development jobs, providing flexibility in the composition of the center. This cost benefit combines with an already low cost of doing business in Louisiana. With the services of LED FastStart and the state’s considerable investments into computer science and engineering, companies can find in Louisiana a current and future robust workforce solution.
- Testing Center: Testing software is critical across all products and divisions. The Digital Interactive Media and Software Development Incentive applies to all forms of software testing, meaning an organization can see significant cost savings by locating its testing resources in Louisiana. As a growing software development hub attracting companies like GE Capital, Gameloft, CenturyLink and more, Louisiana is an ideal location for companies looking to significantly reduce cost while maintaining the high standards necessary to conduct software testing. Louisiana’s partnerships with universities mean access to a skilled workforce.
- Dedicated Software Development Center: For centers entirely dedicated to software development, Louisiana’s software incentive and the services of LED FastStart can significantly reduce costs. The Digital Interactive Media and Software Development Incentive will provide a payroll rebate on project managers, quality assurance, engineers, programmers, designers, composers, artists and more. With the option to receive 85 percent of the earned value as a rebate any time in the year, the incentive also provides an accessible cash flow mechanism. The 25 percent production expense rebate applies not only to production equipment, but also facility rental fees and permits. With investments by the state in higher education and the recruitment services of LED FastStart, development centers will also have access to a highly trained workforce.