Louisiana now has the nation's most aggressive tax incentives for Digital Interactive Media. 

Digital Interactive Media - Increases the DIM incentives to 25% for in-state expenditures and 35% for Louisiana labor; expands the definition of “digital interactive media”; removes the sunset.  La. Acts 2009, No. 454, eff. July 1, 2009, amending and re-enacting La. R.S. 47:6022.  SB 277 (Duplessis).

Other important innovation incentives include:

New Markets Tax Credit Program - Increases the credit cap for a single business under the New Markets Tax Credit Program to $7.5 million (from $5 million) for qualified equity investments issued on or after December 1, 2009; Provides a time deadline of 60 days within which LED shall grant or deny a request for certification as an investment.  If a request for certification is not denied within sixty days of the certified delivery date of the request, the request is deemed to be granted certifying the investment as consistent with the target industries; Adds a provision that if the aggregate amount of the tax credit requests received on a single business day exceed the total amount of available tax credits, tax credits shall be approved on a pro rata basis.  La. Acts 2009, No. 463, eff. July 8, 2009, amending and reenacting R.S. 47:6016(B)(1)(c) and (E). HB 753 (Richmond)

Research and Development Tax Credit - Removes the provisions in connection with transferability and carryforward of the credits and makes the tax credit refundable; Lowers the employee qualification threshold from 500 to 100 employees for the 8% credit and changes the 20% credit employee requirement from “less than 500” to “fifty to ninety-nine”; Adds a 40% credit for an entity that employees fewer than 50 Louisiana residents; Increases the tax credit to 40% for taxpayer who receives a federal Small Business Innovation Research Grant; No credit shall be allowed pursuant to this Section for research expenditures incurred or Small Business Innovation Research Grant funds received after December 31, 2013 (extended from Dec. 31, 2009); La. Acts 2009, No. 477, eff. July 9, 2009, amending and reenacting R.S. 47:6015, and Section 2 of Act No. 9 of the 2002 First Extraordinary Session of the Legislature. HB 790 (Greene).  Companion bills that died in the process: HB 376 (Greene), SB 196 (Riser).

Technology Commercialization - The Technology Commercialization Credit and Jobs program provides credit for companies that invest in the commercialization of Louisiana technology and create new jobs.  Qualifying individuals or businesses that invest in the commercialization of Louisiana technology in Louisiana may be granted a refundable tax credit on any income or corporation franchise tax liability, and earn a refundable tax credit based on new jobs created.  Qualifying research centers that develop Louisiana technology to be commercialized may be granted a refundable tax credit based on new jobs created.  Such credits are granted for a period of no less than five years.

Additional incentives include: 

Sound Recording - Extends the sunset date from January 1, 2010 to January 1, 2015 for investments made in state-certified productions and state certified sound recording infrastructure projects  La. Acts 2009, No. 475, eff. August 15, 2009, amending and re-enacting R.S. 47:6023. HB 458 (Talbot).  Companion legislation: SB 123 (Michot) – vetoed by the Governor. 

Wind and Solar Energy Tax Credit - Expands eligibility for the wind and solar energy system tax credit to taxpayers who purchase and install such systems in residential properties. La. Acts 2009, No. 467, eff. July 8, 2009, amending and re-enacting R.S. 47:6030(A) and (B)(2). HB 858 (Ponti). 

Qualified Clean-burning Motor Vehicle Fuel Property - Provides an incentive to persons or corporations to invest in qualified clean-burning motor vehicle fuel property; the credit is equal to 50% of the cost of the qualified clean-burning motor vehicle fuel property; credit is allowed against individual or corporate income tax; credit is applicable to amounts paid on or after January 1, 2009.  La. Acts 2009, No. 469, eff. July 9, 2009, enacting R.S. 47:6035 and repealing R.S. 47:38 and 287.757 and R.S. 51:2458(2). HB 110 (Jane Smith). 

Green Job Industries - Provides for a tax credit for investment in a “state-certified green project”. Capped at $1 million per project and $5 million for all projects per year. La. Acts 2009, No. 520, eff. August 15, 2009, enacting R.S. 47:6035. HB 733 (Leger). 

Retention and Modernization - Establishes the Retention and Modernization Act of 2009.  Essentially, the purpose of the Act is to stop businesses from relocating to another state and to modernize their existing operations in Louisiana.  To accomplish this, the Act provides for a refundable tax credit at the rate of 5% of the amount of qualified expenditures, with the credit divided into equal portions for 5 years and with such credit to be used against any state income or corporation franchise tax liability owed to the state by the qualified employer seeking said credit.  To qualify, the project must be placed in service on or after July 1, 2011.  Total amount of credits granted each year are capped at $10 million per year. The Act requires the Department of Economic Development, the Louisiana Workforce Commission and the Louisiana Department of Revenue to promulgate rules and regulations that businesses can use to qualify for the Retention and Modernization Act of 2009.   La. Acts 2009, No. 447, eff. August 15, 2009, enact Chapter 39-C of Title 51 of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 51:2399.1 through 2399.6.  SB 252 (Walsworth)

Tax Credit Programs with Annual Caps/Limits - Provides that any tax credit against income or corporate franchise tax with an annual or total program cap or limit be administered on a first-come, first-serve basis; however, all tax credit requests received on the same business day shall be treated as received at the same time, and if the aggregate amount of tax credit requests received on a single business day exceed the amount of tax credits available, tax credits shall be approved on a pro rata basis.  La. Acts 2009, No. 445, eff. July 8, 2009, enacting R.S. 47:1675(A)(6).   SB 160 (Marionneaux)