Louisiana looks to tech for economic development
If you own a high-tech company, Louisiana wants you to help its economic development. To prove it, the state has enhanced its Digital Media Tax Credit program and extended its Technology Commercialization Tax Credit program to attract more media and research companies.
Senate Bill 123 enhances the Digital Media tax credit program, which offers tax credits of 25 percent on qualified interactive software production in entertainment, healthcare, engineering and other sectors, by offering a refundable, rather than a transferable credit. The change is intended to allow participating companies to receive a significantly larger benefit from the program without extra cost to the state for a given project.
Senate Bill 134 extends the Technology Commercialization bill another six years through 2017. The Technology Commercialization program offers tax credits of 40 percent on up to $250,000 a year in research tied to Louisiana higher education campuses. Those research companies also may apply for a 6 percent payroll rebate on qualified jobs. “The Digital Media Tax Credit and Technology Commercialization Tax Credit programs illustrate how powerful incentives can be in generating new investment and job opportunities our Louisiana businesses and people,” Gov. Bobby Jindal said in a statement. “These programs have the potential to expand reach in innovative fields that have already rapidly grown in just the past couple of years. These tax incentives will help create job opportunities for our children right here in Louisiana so they don’t have to leave home to pursue their dreams.”
The Digital Media tax credit program already has attracted major technology companies, such as Electronic Arts, to Louisiana, and they are creating more than 1,000 new jobs in the state, according to Jindal’s office. Additionally, the program has helped to cultivate younger, high-growth companies.
Read more about Louisiana’s Digital Interactive Media & Software tax credit.
