Low Taxes and Competitive Company Costs
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
Customized Incentive Packages Are Available
Louisiana’s highly competitive incentives are offering both new and existing energy operations significant advantages.
- Louisiana’s Research and Development Tax Credit provides a tax credit of up to 40 percent on qualified research expenditures incurred in Louisiana — with no cap and no minimum requirement.
- 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 water management industry. The incentive is applicable to customer-facing software including modeling software for manufacturing/testing remote sensing instrumentation. 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 company receives the balance as a refund.