NEW ORLEANS - As part of a sweeping new strategic plan unveiled earlier this year, Louisiana Economic Development (LED) has introduced the new Louisiana Wins Business Incentive Guide, a package of programs aimed at attracting new investment, supporting business expansion and creating high-quality jobs across diverse industries statewide.
The guide was developed following the passage of the Positioning Louisiana to Win bill, which established new tools to help the state compete for business investment and offer better job opportunities for residents.
The Push for Modernization
When Susan Bonnett Bourgeois became Secretary of Louisiana Economic Development in early 2024, she inherited a landscape marked by complex economic development tools and an aging strategic plan in need of modernization.
“At that time, Louisiana’s economic development system was really a collection of moving parts, and there was no cohesive, high-level philosophy tying it all together,” Bourgeois said.
Historically, the state relied heavily on two separate incentive programs: the Industrial Tax Exemption Program, known as ITEP, and the Quality Jobs Program.
“For decades, Louisiana aggressively pursued the Industrial Tax Exemption Program, which was purely focused on the size of capital investments and property tax abatements,” Bourgeois said. “Over the last eight years, under Gov. Edwards, a jobs component was added. That meant if a company wanted to qualify, it had to meet complicated job creation requirements and capital expenditure thresholds. Industry hated it because it was complicated and didn’t always make sense.”
Similarly, the Quality Jobs Program became increasingly complex over time.
“There was also a capital expenditure component in Quality Jobs, where companies could get a larger rebate based on how much they were investing,” she said. “The problem was, these were originally discrete programs, but over time they got blended together and muddied, creating confusion and making it harder for businesses to navigate the incentives.”
Beyond incentives, the agency itself was operating under an outdated framework.
“LED hadn’t undertaken a new strategic plan in 20 years,” Bourgeois said. “We were still operating under an old plan that identified industries and priorities that were relevant back then but aren’t necessarily relevant now. For example, that plan was published before the Haynesville Shale was discovered and before natural gas became a huge driver of our economy. Natural gas wasn’t even mentioned in the plan.”
Lawmakers saw the disconnect and decided to make changes.
“Legislators were asking questions about whether the programs were actually working, and no one could really answer definitively,” Bourgeois said. “That’s the environment we walked into. The Governor wanted to clean up ITEP to make it easier to use, clearer and more streamlined. Now the reporting, quantifying benefits and compliance are all clearer.”
These changes culminated in the launch of the Louisiana Wins Business Incentive Guide.
“For the first time, we as a department have created a one-stop shop providing an all-in-one package,” Bourgeois said. “Previously, it was really hard for people to understand or communicate how competitive Louisiana was. Now, the guide simplifies a number of programs and ties them to our broader economic philosophy.”
The Louisiana Wins Business Incentive Guide consolidates several of the state’s most impactful programs, creating a single resource for companies exploring investment opportunities in Louisiana.
Digital Interactive Media and Software Program
Louisiana’s Digital Interactive Media and Software Program offers:
- A 25% tax credit on qualified payroll for resident labor
- An 18% tax credit on eligible production costs
- An 85% rebate option or refundable credits if tax liability is exceeded
Eligible projects include digital games, mobile apps, business software and embedded systems. Covered expenses include salaries for engineers, programmers and game designers, as well as hardware, software and development costs.
High Impact Jobs Program
Louisiana’s High Impact Jobs Program provides up to five years of reimbursable grants for businesses creating new, higher-paying jobs. Details include:
- 18% of wages for jobs paying at least 125% of the parish average wage
- 22% for jobs at 150% of the parish average wage
- 8% for distressed areas, with lower wage thresholds of 110% of the parish or regional average
Eligibility depends on creating permanent, full-time jobs filled by Louisiana residents. Sole proprietorships and certain sectors, including gaming, retail, sports teams and some local government services, are excluded.
Industrial Tax Exemption Program
Manufacturers can qualify for:
- An 80% property tax abatement for up to 10 years on new capital investments
- Higher exemption rates of 93% to 100% for “mega-projects” exceeding $500 million
ITEP is open to manufacturers under NAICS codes starting with 31, 32 or 33. New rules in 2025 streamlined the application process, eliminating previous job creation or payroll minimums. Local ITEP committees can weigh in, but final approval rests with the state.
LED FastStart
LED FastStart provides no-cost, customized workforce solutions for eligible companies, including:
- Recruitment strategies targeting Louisiana and out-of-state talent
- Training tailored to company needs through instructor-led, virtual or on-the-job methods
- Partnerships with schools, universities and economic development groups
Eligibility generally requires creating at least 15 new permanent jobs for manufacturing or distribution, or 50 new permanent jobs in digital media, R&D, headquarters operations or call centers.
Research and Development Tax Credit
Louisiana’s R&D Tax Credit offers up to a 30% tax credit on qualified research expenses in the state, with no minimum spending requirement. Eligible activities must:
- Aim to discover technological knowledge
- Develop new or improved business components
- Involve significant experimentation, accounting for at least 80% of the activity
Qualifying expenses include wages for R&D staff, direct research supplies and payments to contractors, with 65% of contract research costs in Louisiana eligible.
Restoration Tax Abatement
Businesses and homeowners seeking to renovate properties can benefit from the Restoration Tax Abatement program, which provides:
- Up to a 10-year property tax abatement on renovations or improvements
- An initial five-year term, renewable for an additional five years upon approval
Projects must be in qualifying areas such as downtown districts, economic development zones, historic districts or Opportunity Zones. Eligible expenses include building materials, machinery, equipment and labor costs.
Tax Competitiveness
Louisiana’s business climate also features changes to the state tax code:
- A flat personal income tax rate of 3%, with standard deductions of $12,500 for individuals and $25,000 for couples
- A flat corporate income tax rate of 5.5%, with a $20,000 deduction
- Elimination of the corporate franchise tax effective Jan. 1, 2026
Louisiana is one of only three states offering permanent full expensing, allowing businesses to deduct the full cost of qualifying capital investments in the year they’re placed in service. Eligible expenses include most business equipment and machinery, interior improvements to commercial buildings and R&D expenditures on new products, technology or software.
