Competitive Projects Payroll Incentive Program
The Competitive Projects Payroll Incentive Program provides an incentive rebate of up to 15 percent of a participating company's new payroll for up to 10 years. Additionally, a participating company will be eligible for either a rebate of state sales and use taxes on capital expenditures or 1.5 percent project facility expense rebate. Incentive rebates by industry are listed below:
The Secretary of Louisiana Economic Development may invite a business to participate in the program upon determining the business meets all of the following criteria:
- At least 50 percent of the total sales of the business from its Louisiana site or sites are to out-of-state customers or buyers, or to in-state customers or buyers who resell the product or service to an out-of-state customer or buyer for ultimate use, or to the federal government, or any combination.
- Projects selected to participate in the program must demonstrate net new jobs and payroll within the state and the project is deemed to be competitive in nature.
- The business offers, or will offer within ninety days of the effective date of qualifying for the incentive rebates, a basic health benefits plan to the individuals it employs.
Ineligible Business Types
- Gaming or gambling
- Natural resource extraction or exploration, unless the activity is the conversion of natural gas to diesel, jet fuel or other refined fuels
- Retail sales
- Real estate
- Professional services
- Venture capital funds
- Wood products
- Manufacturing of machinery or equipment primarily intended to serve the energy industry
The Competitive Projects Payroll Incentive Program is a discretionary incentive. Participation in the program requires invitation by Louisiana Economic Development (LED) and approval by the Joint Legislative Committee on the Budget. An invitation may be extended after the Secretary, working closely with the assigned LED business development project lead, reviews the project's eligibility and assesses the competitive nature of the project.
Upon invitation and approval to participate in the program, a contract is executed between the business and LED. The qualified business must submit certification that it continues to meet all eligibility requirements and contract performance obligations of the contract. Annually, LED will verify that a participating company continues to meet the eligibility requirements of the program as well as performance obligations of the contract and submit the rebate claim to the Louisiana Department of Revenue for payment.
- Company provides a project description to the assigned LED business development project lead, including information on the anticipated number of new jobs, amount of new payroll, and the level of capital investment.
- LED determines the project's eligibility and assesses the competitive nature of the project.
- Upon qualification, an invitation for program participation may be issued by LED with concurrence from the Joint Legislative Committee on the Budget.
- A contract is executed between LED and the company.
- Upon approval of the contract, LED shall submit a copy of the contract to the Louisiana Department of Revenue.
Frank FavaloroManager, Business Incentive Services