Incentives Ready for Takeoff

Aerospace manufacturers will find a suite of highly competitive incentives designed to help their operations thrive in Louisiana.

• For competitive projects that involve substantial job creation, major investment and the majority of sales to out-of-state customers, Louisiana’s new Aerospace Manufacturing Payroll Incentive can provide up to a 12 percent payroll rebate over 10 years. Additionally, a participating company will be eligible for either a rebate of state sales and use taxes on capital expenditures a 1.2 percent project facility expense rebate.
• Louisiana also provides a 100 percent property tax exemption, including 100 percent of school taxes, for 10 years through its Industrial Tax Exemption Program.
• In addition, the Digital Interactive Media and Software Development Incentive — the nation’s strongest, most comprehensive incentive for software development — provides a unique advantage to the aerospace industry. The incentive is applicable to customer-facing software, including aerospace-specific applications like navigation, communications, radar, defense and other embedded systems. Eligible projects receive up to a 35 percent refundable tax credit for payroll expenditures and up to a 25 percent refundable tax credit for qualified production expenditures. If the amount of tax credits exceeds the business’ state income and franchise tax liabilities, the business receives the balance as a refund.