This panel was presented by Scott Whittaker, Member at Stone Pigman. Find out more at http://www.stonepigman.com.

1. THE IDEA VILLAGE
NEW ORLEANS ENTREPRENEUR WEEK
TAX
AND
OTHER
INCENTIVES
FOR
ENTREPRENEURSHIP
IN
LOUISIANA
NEW
ORLEANS,
LA
MARCH
27,
2014

2. Sco5
T.
Whi5aker,
Stone
Pigman
Walther
Wi?mann
LLC
Charlie
Romaine,
Louisiana
Economic
Development
Daniel
J.
Walter,
Stone
Pigman
Walther
Wi?mann
LLC
Brandon
A.
Lagarde,
Postlethwaite
&
Ne?erville,
APAC
Arman
Sadeghpour
PhD,
Theodent
Introductions

3. BUSINESS
INCENTIVES
OpportunityLouisiana.com
Charlie
Romaine
Assistant
Director
BERG

4.
2
LOUISIANA
ECONOMIC
DEVELOPMENT
Website
Homepage
www.OpportunityLouisiana.com

5. LOUISIANA
ECONOMIC
DEVELOPMENT
An
interacJve
tool
allowing
a
business
to
discover
which
incenJves
their
business
may
be
eligible
for
and
the
potenJal
tax
benefits.
•
Am
I
eligible
for
any
incenJves
offered
in
Louisiana?
•
What
is
my
potenJal
tax
benefit?
• What
are
my
next
steps
to
receive
these
incenJves?
§ Takes
less
than
15
minutes
to
navigate
through
the
eligibility
quesJonnaire
for
all
LED
administered
programs.
§ To
get
started
visit:
h?p://incenJveevaluator.louisianaeconomicdevelopment.com/Welcome.aspx
Louisiana
IncenOve
Evaluator
3

6. 4
Part
I:
Louisiana
Economic
Development
CorporaOon
Small
Business
Loan
and
Guaranty
Program
Part
II:
Board
of
Commerce
and
Industry
Industrial
Tax
ExempOon
Program
RestoraOon
Tax
Abatement
Program
Quality
Jobs
Program
Enterprise
Zone
Program
AGENDA

7. SMALL
BUSINESS
LOAN
AND
GUARANTY
PROGRAM

8. SMALL
BUSINESS
LOAN
AND
GUARANTY
PROGRAM
§ Loan
assistance
program:
provides
up
to
75%
loan
guarantees
or
state
direct
loan
parJcipaJons
up
to
40%
to
facilitate
capital
accessibility
§ Loan
guarantees
ranges
from
$5,000
minimum
to
$1.5
million
Benefit:
6
Eligibility
(not
comprehensive):
§
Must
increase
employment
within
specified
Jme
frame
§
Must
hire
35%
of
new
workers
from
one
of
four
targeted
groups

9. •
Revolving
Lines
of
Credit
•
Startups
•
AcquisiJons
•
Expansions
•
Fixed
asset
purchases
•
Purchase
or
construcJon
of
building
(limited
to
51%
applicant
occupancy)
•
Restaurants
(except
franchises)
•
Bars
and
Saloons
•
Gaming
businesses
•
Real
estate
speculaJon
•
RecreaJonal,
theme
or
amusement
parks
•
Camping
faciliJes
SMALL
BUSINESS
LOAN
AND
GUARANTY
PROGRAM
Eligible
Loan
Types
Ineligible
Loan
Types
7

10. Accoin
Louisiana
BanCorp
South
Community
Trust
Bank
Farmers-­‐Merchant
Bank
&
Trust
Home
Bank
Iberville
Bank
Jeff
Davis
Bank
MidSouth
Bank,
NA
Regions
Bank
Synergy
Bank
Whitney
Bank
First
Bank
and
Trust
American
Gateway
Bank
Capital
One,
NA
Enterprise
Corp
of
the
Delta
Guaranty
Bank
&
Trust
IberiaBank
Investar
Bank
Liberty
Bank
Red
River
Bank
Seedco
Financial
Teche
Federal
Bank
First
NBC
Co?onport
Bank
SMALL
BUSINESS
LOAN
AND
GUARANTY
PROGRAM
LIST
OF
BANKS
AND
FINANCIAL
INSTITUTIONS
8

11. CONTACT
OpportunityLouisiana.com
@LED Louisiana
9
Seth
Brown
Loan
Investment
Officer
Louisiana
Economic
Development
225-­‐342-­‐5254
Seth.Brown@la.gov
ChrisOan
Pennington
Loan
Investment
Officer
Louisiana
Economic
Development
225-­‐342-­‐5883
ChrisJan.Pennington@la.gov
Susan
Bigner
Loan
Investment
Officer
Louisiana
Economic
Development
225-­‐342-­‐5651
Susan.Bigner@la.gov

12. INDUSTRIAL
TAX
EXEMPTION
PROGRAM
OpportunityLouisiana.com

13. INDUSTRIAL
TAX
EXEMPTION
PROGRAM
§ Property
tax
abatement:
provides
a
100%
property
tax
abatement
for
up
to
10
years
on
manufacturer’s
qualifying
capital
investments
ELIGIBILITY
(not
comprehensive)
§
Applies
only
to
capital
investments
by
Louisiana
manufacturers
§
Property
must
remain
on
the
site
at
all
Jmes
BENEFIT
11

14. CONTACT
OpportunityLouisiana.com
@LED Louisiana
12
Lori Weber
Program Administrator
Louisiana Economic Development
225-342-6442
Lori.Weber@la.gov

15. RESTORATION
TAX
ABATEMENT
PROGRAM
OpportunityLouisiana.com

16. RESTORATION
TAX
ABATEMENT
PROGRAM
BENEFIT
Property
tax
abatement:
provides
five-­‐
year
100%
abatement
for
the
rehabilitaJon
of
an
exisJng
structure
based
on
assessed
valuaJon
of
property
prior
to
beginning
of
improvements
ELIGIBILITY
(not
comprehensive)
Must
be
located
in
a
qualifying
district
and
approved
by
local
governing
authority.
Does
not
exempt
the
acquisiJon
cost
of
the
structure.
Contact: Allison Saunders
Tax Incentives Director
Culture Recreation and Tourism
Division of Historic Preservation
(225)342-8155
asaunders@crt.la.gov
14

17. CONTACT
OpportunityLouisiana.com
@LED Louisiana
15
Becky Lambert
Program Administrator
Louisiana Economic Development
225-342-6070
Becky.Lambert@la.gov

18. Quality
Jobs
Program
OpportunityLouisiana.com

19. 17
§ Provides
a
cash
rebate
to
companies
creaJng
well-­‐paid
jobs
and
promote
economic
development.
§ 5% or 6% rebate on annual gross
payroll of new, direct jobs
§ Sales/use tax rebate or
Investment Tax Credit (If the
Enterprise Zone hiring requirements
and certifications are met)
§ Five year contract with an option to
renew for an additional five years.
QUALITY JOBS
BENEFITS
OVERVIEW

20. 18
QUALITY JOBS
§ Business must be in one of the following industries: Bioscience, manufacturing,
software, environmental technology, food technology, advanced materials or oil
and gas field service
or
§ At least 50% of total annual sales are to out-of-state and/or to in-state customers
or buyers if the product or service is resold by the purchaser to an out-of-state
customer or buyer, or to the federal government.
or
§ Must be located in a LED designated distressed region. A distressed region shall
be either of the following:
• A parish within the lowest 25% of parishes based on per capita income.
• A census tract block group below the state median per capita income.
ELIGIBILITY (not comprehensive)

21. CONTACT
OpportunityLouisiana.com
@LEDLouisiana
Frank Favaloro
Program Administrator
225-342-5402
Frank.Favaloro@la.gov
Becky Lambert
Program Administrator
225-342-6070
Becky.Lambert@la.gov
19

22. ENTERPRISE
ZONE
PROGRAM
OpportunityLouisiana.com

23. 23
ENTERPRISE ZONE PROGRAM
OVERVIEW
The
Enterprise
Zone
Program (EZ)
is
a
jobs
incenJve
program
that
provides
tax
relief/
benefits
to
businesses
located
in
Louisiana
creaJng
permanent
net
new
full
Jme
jobs.
Ø Of
the
permanent
net
new
full-­‐Jme
jobs
created
50%
of
these
new
jobs
must
meet
one
or
more
of
the
program
cerJficaJon
requirements:
•
Residency
•
Public
Assistance
•
Lacking
Basic
Skills
•
Unemployable
by
TradiJonal
Standards
21

24. ENTERPRISE
ZONE
PROGRAM
§ One
Ome
$2,500
Job
Tax
Credit
(JTC)
§ For
each
permanent
net
new
job
created
This
credit
can
be
applied
towards
your
Louisiana
income
and/or
franchise
tax
liabiliJes.
The
JTC’s
earned
cannot
be
sold
or
transferred.
AND
§ 4%
State
Sales
and
Use
Tax
Rebate
§ Rebate
is
claimed
against
and
calculated
on
state
taxes
paid
on
qualifying
materials,
machinery,
furniture,
and
equipment
purchased
associated
with
the
total
investment.
OR
§ 1.5%
Refundable
Investment
Tax
Credit
(ITC)
§ Refund
is
calculated
on
your
total
capital
investment,
excluding
tax
exempted
items.
NOTE:
A
business
does
not
have
to
make
a
capital
investment
to
par5cipate
in
the
Enterprise
Zone
Program,
only
create
permanent
net
new
full
5me
jobs.
BENEFITS
22

25. ENTERPRISE
ZONE
PROGRAM
§ Create,
at
minimum,
5
permanent
net
new
full
Jme
jobs
within
24
months
of
project
start
date/
contract
effecJve
date;
or
§ Increase
exisJng
naJonwide
workforce
by
10%
within
the
first
12
months
of
the
project
start
date/contract
effecJve
date
;
and
§ 50%
of
the
net
new
full
Jme
jobs
created
must
meet
one
or
more
of
the
following
cerJficaJon
requirements:
• Residency
• Public
Assistance
• Lacking
Basic
Skills
• Unemployable
by
TradiJonal
Standards
ELIGIBILITY
23

26. CONTACT
OpportunityLouisiana.com
@LEDLouisiana
Roshonda Hanible
Program Administrator
225-342-5382
Roshonda.Hanible@la.gov
Joyce Metoyer
Program Administrator
225-342-0485
Joyce.Metoyer@la.gov
24

27. CONTACT
OpportunityLouisiana.com
@LED Louisiana
25
Charlie Romaine
Assistant Director BERG
Louisiana Economic Development
225-342-5444
Charlie.Romaine@la.gov

28. New
Orleans
Entrepreneur
Week
March
27,
2014
Presented
by:
Daniel
J.
Walter
504.593.0826
|
dwalter@stonepigman.com
stonepigman.com

29. Louisiana
Tax
IncenJves
Ø Angel
Investor
Tax
Credit
Ø Research
&
Development
Tax
Credit
Ø Digital
InteracJve
Media
and
Sonware
Tax
Credit
Ø Technology
CommercializaJon
Credit
and
Jobs
Program
stonepigman.com2

30. Angel
Investor
Tax
Credit
Ø Investment
in
a
cerJfied
Louisiana
Entrepreneurial
Business
(LEB)
Ø Accredited
investors
§ Angel
pool
§ High
net
worth
individuals
§ EnJty
consisJng
of
accredited
investors
Ø Tax
credit
of
35%
of
investment
§ Taken
over
5
years
stonepigman.com3

31. Angel
Investor
Tax
Credit
Ø Louisiana
Entrepreneurial
Business
(LEB)
§ Principal
business
operaJons
in
Louisiana
§ Greater
than
50%
of
sales
outside
Louisiana
§ 50
or
fewer
full
Jme
employees
§ Not
primarily
engaged
in:
• Retail
sales,
real
estate,
professional
services,
natural
resource
exploraJon
or
extracJon,
or
financial
services
stonepigman.com4

32. Angel
Investor
Tax
Credit
Ø ApplicaJon
Process
§ Apply
to
LED
for
cerJficaJon
as
a
LEB
§ Submit
applicaJon
for
reservaJon
of
credits
on
January
1
§ Receive
ReservaJon
Le?er
§ Submit
proof
of
investment
within
60
days
§ LED
issues
tax
credit
cerJficaJon
le?er
to
the
Investor
stonepigman.com5

33. Angel
Investor
Tax
Credit
Ø Contact
§ Richard
Broussard
–
Business
Development
Manager
• broussard@la.gov
• 225.342.1940
stonepigman.com6

34. Research
&
Development
Ø Piggyback
on
the
Federal
R&D
Credit
Ø Based
on
"qualified
research
expenses"
(QRE)
§ Wages
of
employees
conducJng
qualified
research
§ Costs
of
supplies
used
in
the
conduct
of
qualified
research
§ PorJon
of
contract
research
expenses
Ø Qualified
Research
stonepigman.com7

35. Research
&
Development
Ø Amount
of
Louisiana
R&D
Credit
§ Greater
than
100
employees
• 8%
of
Louisiana
QRE
in
excess
of
the
base
amount
§ Between
50
and
99
employees
• 20%
of
Louisiana
QRE
in
excess
of
the
base
amount
§ Less
than
50
employees
• 40%
of
Louisiana
QRE
§ 40%
of
Small
Business
InnovaJon
Research
Grant
stonepigman.com8

36. Research
&
Development
Ø ApplicaJon
Process
§ Submit
ApplicaJon
to
LED
• Includes
descripJon
and
evidence
of
Louisiana
QRE
§ LED
approves
the
applicaJon
§ LED
noJfies
the
Louisiana
Department
of
Revenue
§ Claim
credit
on
tax
return
stonepigman.com9

37. Research
&
Development
Ø Contact
§ Eric
Burton
–
Program
Administrator
• eric.burton@la.gov
• 225.342.5340
§ Shamelda
Pete
–
Business
Development
Officer
• spete@la.gov
• 225.342.5341
stonepigman.com10

38. Digital
InteracJve
Media
Ø State-­‐CerJfied
Digital
InteracJve
Media
ProducJon
§ Includes
• Video
or
interacJve
games
• SimulaJon
sonware
• InteracJve
educaJonal
or
training
programs
§ Excludes
• Sonware
for
internal
use
• StaJc
internet
sites
stonepigman.com11

39. Digital
InteracJve
Media
Ø Amount
of
Tax
Credit
§ 25%
of
base
investment
in
Louisiana
• ProducJon
expenses
• Component
parts
§ 35%
of
payroll
Ø Credits
earned
in
the
calendar
year
in
which
the
funds
are
expended
Ø No
cap
stonepigman.com12

40. Digital
InteracJve
Media
Ø ApplicaJon
Process
§ Apply
to
LED
for
cerJficaJon
§ LED
issues
iniJal
cerJficaJon
le?er
• EffecJve
for
expenses
incurred
up
to
six
months
prior
to
the
date
of
the
le?er
§ Submit
cost
report
of
producJon
expenditures
prepared
by
CPA
§ LED
issues
final
tax
credit
cerJficaJon
le?er
§ Claim
credit
on
tax
return
OR
receive
85%
rebate
at
the
Jme
of
final
cerJficaJon
stonepigman.com13

41. Digital
InteracJve
Media
Ø Contact
§ Heath
Williams
–
Director
Digital
InteracJve
Media
• heath.williams@la.gov
• 225.342.3571
stonepigman.com14

42. Technology
CommercializaJon
Ø Refundable
Tax
Credit
of
40%
of
commercializaJon
costs
§ Machinery
and
equipment
§ Fees
relaJng
to
IP
§ Payments
to
Louisiana
universiJes
under
research
agreements
§ Payments
for
clinical
research
or
trials
Ø 6%
payroll
rebate
for
new
direct
jobs
Ø Requires
a
research
agreement
with
a
Louisiana
University
stonepigman.com15

43. Technology
CommercializaJon
Ø Contact
§ Shamelda
Pete
–
Business
Development
Officer
• spete@la.gov
• 225.342.5341
stonepigman.com16

44. Accounting Issues
Brandon
A.
Lagarde,
CPA,
JD,
LLM
|
Tax
Director
8550
United
Plaza
Blvd.
|
Suite
1001
|
Baton
Rouge,
LA
70809
Phone:
(225)
922-­‐4600
|
Direct:
(225)
408-­‐4714
|
Fax:
(225)
922-­‐4611
Postlethwaite
&
Netterville,
APAC
|
www.pncpa.com

48. Accounting Issues
Arman
Sadeghpour
PhD
President
&
CEO,
Theodent
www.theodent.com

55. Louisiana
Economic
Development

66. Louisiana
Economic
Development
Theodent Thanks you!

67. Questions?