Doing Business in Lafayette, LA
Lafayette, LA has a business-friendly environment, where leaders work together to ensure the success and prosperity of our community and our business base. There are several resources available in Louisiana that can give businesses that operate here an advantage.
Louisiana offers competitive tax incentives to businesses who are creating jobs and driving innovation.
Angel Investor Tax Credit
Up to a 25 percent tax credit for individual investors who invest in early stage, wealth-creating businesses that seek start-up and expansion capital.
Digital Interactive Media and Software Program
A 25 percent tax credit for in-state labor, and an 18 percent credit for eligible production expenditures.
Either a $3,500 or $1,000 tax credit for each certified net, new job created and either a state sales/use tax rebate on capital expenses or 1.5 percent investment tax credit for qualifying expenses. *Limited time, expanded eligibility available for retail businesses, hotels and restaurants.
Entertainment Job Creation Program
A 15 percent or 20 percent tax credit on annual wages to qualified entertainment companies (QEC) that create a minimum of five well-paid net new jobs for Louisiana residents.
Federal Opportunity Zones
Provides a federal tax incentive for investors to re-invest their capital gains into Opportunity Funds.
Property tax abatement for up to 10 years on a manufacturer's new investment and annual capitalized additions.
The nation's No. 1 workforce training program, FastStart creates customized employee recruiting, screening and training solutions — at no cost to eligible companies.
Live Performance Production Program
Up to 25 percent tax credit for musical and theatrical productions, refundable or transferable on a one-time basis.
Motion Picture Production Program
Up to a 40 percent tax credit on eligible in-state production expenditures, including resident and non-resident labor.
Music Job Creation Program
A 10 percent or 15 percent credit on annual wages to qualified music industry-related companies (QMC) that create a minimum of three well-paid net new jobs for Louisiana residents.
Up to a 6 percent rebate on annual payroll expenses for up to 10 years and either a state sales/use tax rebate on capital expenses or a 1.5 percent project facility expense rebate for qualifying expenses. *Limited time, expanded eligibility available for COVID-19 impacted retail businesses, hotels and restaurants.
Research and Development Tax Credit
A tax credit up to 30 percent to existing businesses with operating facilities in Louisiana to establish or continue research and development within the state.
Restoration Tax Abatement
A 100 percent property tax abatement for up to 10 years for the rehabilitation of an existing structure.
A production credit of 18 percent for eligible production expenditures.
Programs for Small Businesses
Bonding Assistance Program
Provides access to quality bid, payment and performance bonds at reasonable rates from surety companies when bonding capacity is needed on public or private jobs.
Peer groups that give executives the opportunity to discuss business practices and management strategies with other executives who deal with similar growth challenges.
Economic Gardening Initiative
Provides customized core business strategies, market research, qualified sales leads and improved internet and technology tailored to your growing needs.
Certification program offers greater access to purchasing and contracting opportunities at the state government level.
Louisiana Contractors Accreditation Institute
Offers seminars and courses to small and emerging construction businesses that assist in building a solid foundation of knowledge within the construction industry.
Louisiana Veterans First Business Initiative
The program will allow for a veteran, active or reserve military, or Gold Star spouse who have a fifty-one percent ownership in a business to apply for and gain certification to recognize and promote their businesses. In addition, the program will create a searchable database for anyone seeking to patronize a veteran, active-duty or reserve military, or Gold Star spouse business.
Mentor-Protégé Recognition Program
Connects Louisiana-based small and emerging businesses to technical and developmental assistance provided by mentor companies.
Small and Emerging Business Development Program
Provides for developmental assistance, including entrepreneurial training, marketing, computer skills, accounting, legal and industry-specific assistance.
Small Business Loan and Guaranty Program
Provides loan guarantees to banks and other small business lenders in association with the SSBCI ranging from $5,000 to $1.5 million.
Provides financial awards to state and territory governments to assist small businesses with export development.
Helps veteran-owned and service-connected disabled veteran-owned small businesses gain greater access to purchasing and contracting opportunities at the state level.
State and Local Taxes
Corporate Franchise Tax
- This state tax is levied annually at the rate of $1.50 per $1,000 on the first $300,000 of capital stock, surplus, undivided profits and borrowed capital employed in Louisiana.
- The rate is $3.00 per $1,000 after the first $300,000.
- The minimum tax is $10.00 per year; a waiver of the corporate franchise tax is allowed under certain incentive programs.
Corporate Income Tax
- Tax ranges from 4% to 8% of the net taxable income.
- The effective rate of taxation is somewhat less because federal income taxes are deductible in computing net taxable income.
- No state property tax in Louisiana.
- 2019 Lafayette City and Parish property tax millage is 100.36 mills.
- For property outside of the city limits of Lafayette, the total millage is 83.95.
- Several types of exemptions are available in Lafayette Parish. If you own property that you reside in, you may apply for homestead exemption which reduces the taxable value of your home by $75,000, resulting in substantial savings on your property taxes.
- Sales tax is levied on the retail sale of personal property, goods used or stored for use in Louisiana and on leases and rentals of tangible personal property and certain services.
- For the full list of tax rates by municipality and special districts, visit the Louisiana Association of Tax Administrators.