The Enterprise Zone (EZ) program provides tax credits and sales and use tax refunds to businesses locating or expanding in designated enterprise zone areas. The business must create a minimum of five new permanent jobs and fulfill other employee criteria, including certifying that 35% of new employees are unemployable by traditional standards, lacking in basic skills, receiving some form of public assistance or are residents of an enterprise zone in that parish.

The EZ incentive includes a one-time tax credit of $2,500 for each net new permanent job created ($5,000 for certain aircraft-related enterprises). These tax credits can be applied to any state income tax or corporate franchise tax obligation. If the entire credit cannot be used in the year claimed, the remainder can be applied against income of franchise taxes for the succeeding ten years or until used up, whichever occurs first.

EZ incentives include refunds on applicable state and local sales/use taxes on purchases of building construction materials, including machinery and equipment by businesses that build or renovate facilities in Louisiana Enterprise Zones. Sales tax benefits (refunds) are only in effect for the duration of the initial construction period (2 year maximum).

Enterprise Zone Program Fact Sheet: 2007 Legislative Changes

	US citizen that becomes domiciled in Louisiana within 60 days after employment can be considered
	Anyone living in any Louisiana EZ when hired will meet the Residency requirement
	In lieu of the 4% sales tax rebate and the local rebate, the contract holders can opt for a 1.5% Refundable Investment Tax Credit. The Refundable Investment Tax Credit (ITC) is a credit equal to 1.5% of capitalized investment (for Federal Income Tax purposes) minus cost of land, interest, existing building acquisition costs, and the portion of manufacturing equipment that is exempt under Sales/Use tax laws.  The credit is earned the year the project is placed in service.  The ITC may not be claimed until the Project Completion Report is executed.

For more information contact: Marylyn P. Friedkin, Louisiana  Enterprise Zone Program Administrator - Financial Incentives Division Office of Commerce and Industry Department of Economic Dev. P.O. Box 94185 Baton Rouge, LA 70804-9185 phone (225) 342-9228; fax (225) 342-5364, or E-mail: friedkin@la.gov

Louisiana Enterprise Zones 2007 Map Sets
Prepared by the Regional Planning Commission

To view or download a PDF of a map, click on its map-number in the Index Map

New Orleans Metro Area Enterprise Zones 2007 Map Set Index View larger Index (a PDF file)

View larger Index ( PDF file)

St. Tammany Parish Enterprise Zones 2007 Map Set Index View larger Index (a PDF file)

View larger Index ( PDF file)

Louisiana Enterprise Zones 2005 Map Set
Prepared by the Regional Planning Commission

New Orleans Area Enterprise Zones 2003 Map Set Index

View larger Index (PDF)

To determine if a property is located in an Enterprise Zone, select the appropriate map from the Map Index, or, contact: Kara Renne, Economic Development and Community Planning: (504) 483-8527; e-mail: kmrenne@norpc.org

Renewal Community Incentives

In December 2000, Congress passed legislation to create 40 Renewal Communities and a new round of Empowerment Zones. Renewal Community (RC) status provides the Orleans/Jefferson area with a number of tax benefits including:

Wage Credit: Up to $1,500 or 15 percent of an employee's salary up to $10,000 for each employee who lives and works in the renewal community.

*Work Opportunity Credit: Up to $2,400 for employees hired from groups that have high unemployment rates or other special employment needs, including youth ages 18 to 24 that live in the renewal community. Other qualified groups include veterans, ex-felons, food stamp recipients, vocational rehabilitation referrals and summer youth.

**Welfare to Work Credit: Up to $3,500 for the first year and $5000 for the second year for each new hire of someone on long-term family assistance.

Increased Section 179 Deduction: Allows businesses to take a deduction of up to $35,000 on equipment purchases. That lets businesses deduct all or part of the equipment cost the year it is purchased instead of deducting the expense over time.

Commercial Revitalization Deduction: Allows businesses that construct or rehabilitate commercial property to deduct a portion of the costs over a shorter period of time than permitted under standard depreciation rules.

Environmental Clean up Cost Deduction: Allows businesses looking for land to deduct clean up costs of hazardous substances in qualified areas.

Qualified Zone Academy Bonds: State OR local governments can issue bonds at no interest to them to finance certain public school programs IN SCHOOLS that have at least 35 percent of students eligible for free or reduced cost lunch program. Private businesses must contribute money, equipment or services equal to 10 percent of the bond proceeds. The federal government pays the interest in the form of tax credits.

Zero Percent Capital Gains Rate: A business that holds an asset for at least five years does not have to pay taxes on the profit of its sale.

New Markets Tax Credit: Investors in qualified projects can obtain a tax credit of 5 to 6 percent of the amount invested for each of the years the investment is held, for up to seven years of the credit period.

Low-income Housing Credit: Ten year credit for owners of newly constructed or renovated rental housing who set aside a number of units for low-income residents. The State must allocate a portion of its annual cap.

*Also available outside Renewal Communities

**Available in a limited capacity outside Renewal Communities

For more information about the Renewal Community (RC) in Jefferson/Orleans Parishes visit http://egis.hud.gov/egis/cpd/rcezec/ezec_open.htm or contact:

Kara Renne, Economic Development and Community Planning
(504) 483-8527; e-mail: kmrenne@norpc.org

Additional Resources:
RPC Economic Development page
Economic Development Information and Resources