Economic Incentive

Additional INFO

Economic Incentives Downtown

For general information regarding economic incentives or available lease space contact the DDD at DDD2@brgov.com or (225)389-5520

 

Federal Historic Rehabilitation Tax Credit

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)
  • The credit can be carried back one year and forward twenty 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).

The Federal Historic Rehabilitation Tax Credit Program is administered by the Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism. Please contact Nicole Hobson at (225) 342-8160 for additional information and eligibility requirements.

Restoration Tax Abatement Program for Improvements To Structures
  • 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

The Restoration Tax Abatement Program is administered by Louisiana Department of Economic Development. Contact Becky Lambert at Becky.Lambert@la.gov or (225) 342-6070 for additional information and eligibility requirements.

State Commercial Historic Tax Credits (RENEWED)

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:

  • Buildings must be at least 50 years old to be eligible for the State Commercial Credit
  • Residential rental property or nonresidential depreciable property in a DDD
  • Properties located within the boundaries of a cultural district or downtown development district are eligible to apply.
  • 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.

The State Commercial Historic Tax Credit Program is administered by the Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism. Please contact Allison Saunders or (225) 342-8160 for additional information and eligibility requirements.

State Residential Historic Rehabilitation Tax Credits (RENEWED)

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
  • Located in a DDD
  • Vacant (atleast 6 months) and blighted buildings atleast 50 years old
  • Rehabilitation costs must exceed $20,000
  • Credits are calculated using a formula based on a percentage of adjusted gross income of the owner-occupant
  • A flat 25% credit is offered; additionally, If, however, a building is determined to be vacant and blighted, the credit award is increased to 50%. One of the areas of eligibility for this program, in addition to being located in a DDD, is being a vacant and blighted building at least 50 years old (vacant for at least 6 months).

The State residential Historic Rehabilitation Tax Credit Program is administered by the Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism. Please contact Allison Saunders at (225) 342-8160 for additional information and eligibility requirements.

Downtown Cultural District

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)

The Downtown Cultural District is administered by Louisiana Department of Culture, Recreation, and Tourism. Please contact Gaye Hamilton at ghamilton@crt.la.gov (225) 342-8161 for additional information and eligibility requirements.

Development Impact Fee Waivers

Traffic and sewer impact fees can be waived for eligible downtown development projects.  Some restrictions apply.  Contact the Downtown Development District at DDD2@brgov.com or (225) 389-5520.

New Market Tax Credits (NMTC)

As one of the most powerful tools in community revitalization, the New Markets Tax Credit (NMTC) program provides investors with federal tax credits for making investments in a wide range of redevelopment projects located in low-income communities. In December 2009, the East Baton Rouge Community Development Entity, LLC (EBRCDE), a partnership between the City of Baton Rouge-Parish of East Baton Rouge and the East Baton Rouge Redevelopment Authority, was awarded an allocation of $60 million in New Market Tax Credits. New Market Tax Credits are administered by the East Baton Rouge Redevelopment Authority. Contact Mark Goodson at mgoodson@ebrra.org or (225) 387-5606 for additional information and eligibility requirements.

Business Improvement Grant (BIG)

BIG is a program that provides a financial incentive to small business owners and owners of commercial buildings to improve their retail settings. This reimbursable matching grant is available to improve the commercial corridors and neighborhood retail environment. BIG is administered by the East Baton Rouge Redevelopment Authority. Contact Mark Goodson at mgoodson@ebrra.org or (225) 387-5606 for additional information and eligibility requirements.

Gap Financing (GAP-C)

GAP-C is designed to provide gap funding for business, entrepreneurial or commercial real estate development projects. Gap-C are reimbursement funds intended to fill a potential void between traditional loan funds from a senior lender, developer equity, tax credits and other non-traditional funding sources. Gap-C will provide permanent funds for acquisition of property and development of projects. GAP-C is administered by the East Baton Rouge Redevelopment Authority. Contact Susannah Bing at sbing@ebrra.org or (225) 387-5606 for additional information and eligibility requirements.

Gap Financing (GAP-A)

GAP-A is designed to provide gap funding for mixed income housing development projects. Gap-A are reimbursement funds intended to fill a potential void between traditional loan funds from a senior lender,developer equity, tax credits and other non-traditional funding sources. Gap-A will provide permanent mortgage funds for the repair and renovation of existing rental properties as well as acquisition and development of new residential rental properties. GAP-A is administered by the East Baton Rouge Redevelopment Authority. Contact Susannah Bing at sbing@ebrra.org or (225) 387-5606 for additional information and eligibility requirements.

Economic Development Zone Status

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.

The Economic Development Zone Status is administered by Louisiana Department of Economic Development. For additional information on rules and regulations contact Roshonda Hanible at Roshonda-Hanible@la.gov or (225) 342-5382.

Tax Increment Financing (TIF)

TIF is a method to use future gains in taxes to finance current improvements, ultimately increasing the value of surrounding real estate, and new investment. Tax Increment Financing has been used as a subsidy for redevelopment on several Downtown projects. The application of Tax Increment Financing for Downtown development is very project specific. Contact the DDD at DDD2@brgov.com or (225) 389-5520 for more information.

Digital Media and Software Incentive

The Digital Media and Software Incentive provides a tax credit of 25% of qualified production expenditures for state-certified digital interactive productions in Louisiana and 35% tax credit for payroll expenditures for Louisiana residents.

Benefits

  • 25% tax credit for digital interactive media expenditures made in Louisiana
  • a 35% tax credit on payroll expenditures for Louisiana residents
  • No annual cap on tax credits
  • The tax credit can be sold or applied against Louisiana tax liability

Eligibility
Louisiana's Digital Media and Software Incentive is available to businesses in the digital media and software industry that develop products including video games, simulation/training software and social media applications.

This tax credit does not apply to software developed for institutional, private or internal purposes, or largely static Internet sites designed to provide information about a person, business, company or firm. The tax credit does not apply to products regulated under the Louisiana Gaming Control Law.

The Digital Media Software Incentive is administered by Louisiana Department of Economic Development. (225) 342-3000.

Additional Information

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 Mezzanine Financing Equity 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 DDD2@brgov.com or (225) 389-5520.

Downtown Development District