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Federal Incentives The Downtown Development District's Economic Development staff is well versed in Federal Incentive Programs.
GO Zone Bonds
Tax-exempt private activity bonds, called Gulf Opportunity Zone bonds or GO Zone bonds can be authorized prior to 2011 for the purpose of financing the construction and repair of real estate and infrastructure in the Gulf Opportunities Zone created by Hurricane Katrina. Proceeds from the GO Zone bonds can be used for repairs and construction of both residential and nonresidential real property as well as for public utility projects. Qualified GO Zone bonds are treated as qualified mortgage bonds or exempt facility bonds.
http://www.crt.state.la.us/hp/gozone.aspx
GO Zone Bonus Depreciation
With the GO Zone Bonus Depreciation, a taxpayer may take an additional first-year 50% bonus depreciation allowance on GO Zone property. Nonresidential real property or residential rental property must be placed in service on or before December 31, 2010. Certain tangible personal property qualifies if substantially all of the use of property is in the building and placed in service within 90 days after the building is placed in service.
- Deduction is allowed for AMT purposes.
- Recapture applies. Not available in conjunction with GO Zone Tax Exempt Bonds.
- May be carried back up to 5 years if it results in a net operating loss.
http://led.louisiana.gov/come-to-louisiana/business-incentives/state-business-incentives/enterprise-zone.aspx New Markets Tax Credit
Investors in qualified projects can obtain a tax credit of five or six percent of the amount invested for each year the investment is held, for up to seven years of the credit period.
The New Markets Tax Credit program exists to create investment into urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs. Private-sector investors receive credit against federal income taxes.
http://led.louisiana.gov/come-to-louisiana/business-incentives/federal-business-incentives/new-markets-tax-credit.aspx
Rehabilitation Tax Credit
The 20 percent credit available for qualified expenditures of certified historic structures is increased to 26 percent. The 10 percent credit available for qualified rehabilitation expenditures with respect to buildings placed in service prior to 1936 is increased to 13 percent. The increased amounts apply to expenditures paid or incurred prior to January 1, 2009 and thereafter the 20 and 10 percent credit apply.
http://www.nps.gov/hps/tps/tax/index.htm
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