TAXES & INCENTIVES




Morehouse Parish businesses have benefited from the comparatively low local and state tax rates. More often than not, the taxes impacting business are eliminated or reduced by local and state incentive programs. And the new Louisiana FastStart Training Program is ranked in the nation’s top workforce training programs for company-specific recruiting and training.

Morehouse Parish is currently eligible for Enterprise Zone and other programs offered by the State of Louisiana. Please visit the Louisiana Economic Development Website or contact us to see if your business may qualify for incentive programs. Local job credit programs may be available to assist with building and infrastructure development.



LOCAL AND STATE TAXES

  • TAX
  • STATE
  • LOCAL
  • Sales and Use
  • General - 4%
  • • 5.5 – 6.0% Bastrop


    • 5.0% City/Village


    • 4.0% Rural


  • Local Business Tax
  • None
  • None
  • Corporate Income Tax
  • • 4% on the first $25,000 of net income


    • 5% on the next $25,000


    • 6% on the next $50,000


    • 7% on the next $100,000


    • 8% on the excess over $200,000

  • None
  • Franchise Tax
  • • $1.50 for each $1,000 or major fraction thereof up to $300,000 of capital employed in Louisiana.


    • $3 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana.


    • Minimum tax of $10 per year.

  • None
  • Personal Income
  • 2% - 6% with depreciation from $4,500 to $12,000, depending on filing status.
  • None
  • Property Tax
  • None
  • • Assessors are required by law to assess on improvements of industrial property at 15% of fair market value. (Land at 10%)


    • Private residences are assessed at 10% of fair market value. There is no property tax on the first $75,000.


  • Inventory Tax
  • None
  • • Same as property tax, though a tax credit is automatically available to those that apply.

  • Unemployment Insurance
  • None
  • • Quarterly charges are the sum of a company’s percentage of the unemployment insurance benefits paid to former employees by the Louisiana Workforce Commission.



LOCAL INCENTIVES

Local Property Tax Abatement (Ad Valorem) Property tax abatements are available for qualifying projects for a 10-year maximum period including school millage. Generally, the project is titled in the public body and leased to the private user with an option to purchase for a nominal sum at the end of the lease term.



Special Federal Incentives

  • Community Development Block Grants
  • Grants to expanding and new companies for infrastructure projects in the state that qualify based on hired employees’ income level and place of residence.



State of Louisiana Incentives

  • Quality Jobs Program
  • Annual refundable credit up to 6% of payroll for a period of up to 10 years.
  • Sound Recording Tax Credit
  • Provides credit for up to 25% of production or infrastructure development.
  • Louisiana FastStart Workforce Development Training
  • Provides company-customized pre-employment and on-the-job training and recruitment for existing and new employees.
  • Industrial Property Tax Exemption
  • Exempts new manufacturers & expansions from state, parish and local property taxes for up to 10 years.
  • Restoration Tax Abatement
  • Property tax abatement: provides five-year abatement for the rehabilitation of an existing structure with possible 5 year extension.
  • Sales and Use Tax Exemption
  • Louisiana businesses receive an exemption of the 4 percent state sales, use, lease and rental tax on eligible machinery & equipment purchased in the state including customized software developed in the state.
  • Enterprise Zone
  • Tax credits & rebates for hiring workers within a designated zone. $2,500 credit per new job, and 4% rebate of sales/use tax on materials, machinery or equipment.
  • Inventory Tax Credit
  • 100% state income tax credit on inventory taxes paid.
  • Research & Development Tax Credit
  • Sellable income/franchise tax credits up to 20% of R & D expenditures claim on federal taxes.
  • Technology Commercialization Tax Credit
  • Provides credit for up to 8% of the state’s apportioned share of increased R&D expenses or 25% of its apportioned share of federal research.
  • Digital Media Tax Credit
  • Provides credit for up to 20% of qualified production expenditures.



Small Business Incentives

  • Small Business Loan Program
  • Loan guarantee program: provides up to 75% guarantee and state participations up to 40% for banks that facilitate capital accessibility.
  • Micro Loan Program
  • Loan guarantee program: provides up to 80%guarantee and state participations up to 50% for banks that fund loans from $5,000 to $50,000.
  • Contract Loan Program
  • Loan guarantee program: provides participations with banks that fund government contract loans from $5,000 to $1 million for terms of one year or less.
  • Bonding Assistance Program
  • Bonding assistance: provides up to 25% guarantee for companies bidding on private or public jobs.
  • Angel Investor Tax Credit
  • Tax credit program: provides credit up to 50% for individual investors when they invest in certain early stages of wealth-creating businesses.
  • Mentor-Protégé Tax Credit
  • Tax credit program: provides up to $50,000 per year for participating firms that provide technical assistance to protégé firm.

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