The program provides a 20% tax credit for rehabilitation expenditures to a certified historic structure.

• The building must be depreciable property–rental or commercial
• Restoration must be substantial–exceeding the adjusted basis of the property (purchase price less value of the land) or a minimum expenditure of $5,000 (if the property has been depreciated)
• Rehabilitation expenditures that qualify include items directly related to the repair of the structure (architectural fees, engineering fees, paint, wiring, plumbing, roof repair, etc)
• Tax credit can be carried back three years and forward 15 years
• If a building is not located within an historic district and was constructed prior to 1936, it may qualify for a 10% tax credit if restoration is substantial–exceeding the adjusted basis of the property (purchase price less the value of the land).

For additional information on rules and regulations contact Nicole Hobson at (225) 342-8160.

• When renovation has not yet begun, five-year property tax abatement on improvements to structures is available, with a five-year option for renewal
• Existing structures in downtown, historic, or economic development districts are eligible. Spanish Town and Beauregard Town are included
• Approval must be obtained from the State Board of Commerce and Industry and the East Baton Rouge Metropolitan Council

For additional information on rules and regulations contact John Jernigan, 342-5402.

For historic buildings and residences located in a DDD and classified as historically significant by Louisiana Division of Historical Preservation, the state offers a 25% tax credit based on eligible costs or rehabilitation. This includes labor, materials, and related expenses.
Eligible property includes:

• Residential rental property or nonresidential depreciable property in a DDD
• Listed on the National Register of Historic Places
• Classified as historically significant by the state Department of Culture, Recreation and Tourism
• A credit Cap of five million dollars per taxpayer (or related entity) within any one DDD
• Credits may be carried forward for up to five years and may be sold
• A nominal application fee of $250 is paid to the State Division of Historic Preservation.

For residences located in a DDD and classified as historically significant by Louisiana Division of Historical Preservation, the state offers a tax credit up to $25,000 per structure based on eligible costs or rehabilitation.
Eligible property includes:

• Owner occupied residential or owner occupied mixed use structure
• Listed on the National Register of Historic Places
• Classified as historically significant by the state Department of Culture, Recreation and Tourism
• Rehabilitation costs must exceed $20,000
• Credits are calculated using a formula based on a percentage of adjusted gross income of the owner-occupant

Exemptions of State and local sales tax on the sale of original, one-of-a-kind pieces of artwork

• The local sales tax exemption applies to businesses with an established location within the Cultural Product District. 
• This does not apply to businesses with no fixed locations within the district, such as businesses that would sell at festivals, fairs or other events held in the district
• "Works of art" shall mean visual arts and crafts including but not limited to paintings, photographs, sculpture, pottery, and traditional or fine crafts.
• (The Department of Culture, Recreation and Tourism may determine whether or not an item meets this definition as well as whether the item is "original, one-of-a-kind")
• The seller must complete a sales tax exemption form (R-1384)
  

Traffic and sewer impact fees can be waived for eligible downtown development projects.  Some restrictions apply.  Contact the Downtown Development District at 225.389.5520.

To be eligible for the program, prior notification to the Department of Economic Development is required. An applicant must file an advance notification, with the required $100 processing fee, on the prescribed form prior to starting construction purchasing or installing equipment. In December of 1995, the DDD received designation as an Economic Development Zone (EDZ). The benefits of an Economic Development Zone are as follows:

A $2,500 tax credit for each certified new job. A minimum of five new certified jobs (filled with Louisiana residents) must be created by the project within two years from the effective date of the contract. If a certified employee has been receiving payments under the Aid to Families with Dependant Children Program, an additional $2,500 tax credit may be generated if certain criteria are met.

The tax credits can be used to satisfy state income tax and state franchise tax obligations.
The tax credits may be used in the year that they are generated or rolled over for up to 10 years if a business does not have enough Louisiana state tax liability to use all the credits generated in any one year. A rebate of state sales tax on material used to construct or expand a business as well as machinery and equipment used exclusively on the site is also available.

For additional information on rules and regulations contact Marylyn Friedkin at (225) 342-9228.

In addition to the aforementioned incentives, the Downtown Development District is currently working with the City of Baton Rouge, East Baton Rouge Redevelopment Authority, and private sector partners to design new incentives for downtown development.  As new resources such as tax increment financing, New Markets Tax Credits, mezzanine financing equity, and more become available, the DDD will be even better equipped to meet the needs of serious investors in our marketplace.  Stay tuned for new updates and announcements regarding economic incentives for Downtown.

For additional information contact the Downtown Development District at 389-5520.