ENTERPRISE ZONE PROGRAM

THE FACTS

The Enterprise Zone (EZ) Program is a JOBS incentive program, which creates Louisiana Income and/or Franchise Tax job tax credits (JTC) to a business hiring at least 35% of their net new jobs from one of four targeted groups. A business must create permanent net new jobs at the EZ site.  A business is not required to be located in an EZ.  Only if the job requirement is met, sales/use tax rebates or a refundable investment tax credit may be available.  EZs are areas that the residents receiving public assistance is high. The Board of Commerce and Industry (Board) approves EZ applications.  The Louisiana Economic Development (LED), Business Incentives Services (BI) administers this Program. BI must receive an ADVANCE NOTIFICATION Form and a $100 fee PRIOR to hiring, starting project/construction, receiving purchases, or installing equipment.  Any activity prior to the receipt of the Advance Notification by BI is not eligible.

Click here for a printable Advance Notification Form.

Click here to view a map of St. Tammany Parish's enterprise zones. ELIGIBILITY A. Businesses engaged in gaming or churches are not eligible.     Residential developments are eligible if All of the following requirements are met:           1. Be a multi-family residential development, minimum of 20 units and a maximum of 100 units on a contiguous                site                     2. Located in 2005 Gulf Opportunity Zone or Rita Gulf Opportunity Zone           3. Create required number of permanent jobs           4. Advance Notification must be filed prior to January 1, 2008 B. Must create a minimum number of permanent net new jobs at the EZ site and 35% of net new jobs must meet at least one of the four Certification Requirements (Requirements).  These jobs must be created from Project/Construction Start Date. Either: Increase your current workforce by 10% (minimum of 1) within the first 12 months OR Create a minimum of 5 net new jobs within the first 24 months. The jobs must be filled with: Louisiana resident, someone living in LA at least 30 consecutive days prior to being hired. OR US citizen that becomes domiciled in Louisiana within 60 days after employment BENEFITS A. TAX CREDITS 1. A one time $2,500 JTC is generated for each certified net new job created. A business with NAICS for aerospace or an automobile parts manufacturer may qualify for a one time $5,000 JTC. 2. JTC are used to satisfy Louisiana Income and/or Franchise Tax liabilities. LLC and Subchapter S corporations may pass the JTC to the owners listed on the EZ contract. The credits may be carried forward up to 10 years from the year the JTC were earned. B. SALES/USE TAX REBATE or INVESTMENT TAX CREDIT Louisiana Sales/Use Tax paid on materials, furniture, fixtures, machinery and equipment purchased and used exclusively on the EZ site. These items must be delivered during the Project/Construction Period. The rebate period cannot exceed 24 months. Local sales/use tax is not available with the Investment Tax Credit option. OR 1.5% Refundable Investment Tax Credit can be earned. 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. Local sales/use tax is not available with the Investment Tax Credit option. APPLICATION PROCEDURES A. Advance Notification Form and $100 fee filed with the BI PRIOR to Project/Construction Start Date. B. Application Form and fee must be filed within 90 days after the completion of Project/Construction. The Application Fee is a minimum of $200 and maximum of $5,000. C. Provide a copy Louisiana Department of Revenue Sales/Use Tax Certificate with this project address. D. After the Board approval, a 60-month contract is entered into between the Board and the applicant. The Effective Date of your contract is the Start Date reported on the approved Application. E. An Inspection/Audit Affidavit Form must be submitted with a $100 fee, within six months after completion of project or returned with the signed original contract, whichever is later. F. A Project Completion Report (PCR) must be submitted within six months after completion of project or returned with the signed original contract, whichever is later. On the PCR, the company will state if they will seek the Louisiana Sales/Use Tax Rebat, the Investment Tax Credit or neither. JOB CERTIFICATION - 35% of all jobs generating JTC must meet one of the following: A. Residency 1. If the contract holder is located in an Urban parish (2000 population over 75,000), the employee must live in an EZ in the state. OR 2. If the contract holder is located in a Rural parish and not located in an EZ, the employee must live in an EZ in the state. OR 3. If the contract holder is located in a Rural parish (2000 population 75,000 or less), and located in an EZ, the employee may live anywhere in the parish the company is located. OR 4. If the contract holder is located in an Economic Development Zone (EDZ), the employee may live anywhere in the parish the company is located. B. Receiving some form of public income assistance may include WIC, FTAP, using LDOL by listing your jobs and hiring a LDOL referral, (employment assistance), attended a technical college within the six months prior to being hired. C. Lacking basic skills. A person below the 9th grade proficiency in reading, writing, or math. D. Physically challenged.

ENTERPRISE ZONES The following map shows the locations of St. Tammany Parish's enterprise zones. Click on any of the enterprise zone titles (in blue) to view a downloadable pdf file of that area's specific enterprise zone map.