Low-Interest Loans | Federal Historic Rehabilitation Tax Credit
5-Year Property Tax: Abatement on Improvements to Structures
Economic Development Zone Status | State Commercial Historic Tax Credits
State Residential Historic Tax Credits

For more information vist the Louisiana Gulf Opportunity Zone (GoZone) www.gozoneguide.com

Downtown Low-Interest Loans

The purpose of the Downtown Low-Interest Loan Program is to encourage new commercial enterprises in downtown Baton Rouge.

Loans, in amounts of $25,000 to $250,000 per borrower or project are available for property acquisition, working capital, inventory financing, equipment purchases, furniture and fixtures, leasehold improvements, facade renovations, and signage.

The interest rate charged is the N.Y. Prime fixed until the first day of each quarter.

No fees for application, administration, or discount points will be charged the borrower for a loan. Participating banks do reserve the right to decline this "low-rate" financing to businesses they feel do not fit the program. An agreement will be drawn up to "bump-up" the rate if a business moves out of the district. The applicant must occupy the proposed business location. Anyone may apply for the loan. The only requirement is a serious interest in locating a new commercial business in the Downtown Development District (DDD).

In addition to the low interest loans available, the DDD can provide up to $1,000 to defray expenses associated with the loan’s closing (i.e. appraisals, recording costs, legal fees, etc.)

The loan program is applicable to the entire DDD.

Participating Financial Institutions:

Chase Bank
Hancock Bank
Hibernia National Bank
Union Planters Bank
Whitney National Bank

For additioanl information, contact the DDD at 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),

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.

5 Year Property Tax
Abatement On 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,

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

Economic Development Zone Status

The eligibility of each development for local tax rebate still remains with the local governing authority,

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,

A rebate of certain local sales taxes as in the itemization above may also apply,

Local sales taxes dedicated to schools or to the repayment of bonds are not refundable.

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

State Commercial Historic Tax Credits

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 ad 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 additional information contact Jeff Fluhr with the Downtown Development District at 389-5520.

State Residential Historic Tax Credit

New law establishes an individual income tax credit for restoring owner-occupied residential or mixed-use structures up to $25,000 per structure based on the homeowner’s adjusted gross income,

Effective for taxable years from 2006 through 2009,

Credits may not be sold and will be lost if the house is sold within five years,

Rehabilitation costs must exceed $20,000 per structure,

A nominal application fee of $250 is paid to the State Division of Historic Preservation.

The Division of Historic Preservation should be contacted early in the planning process. Questions about the application process should be directed to Alison F. Bordelon at the Division of Historic Preservation at 342-8160 or visit www.louisianahp.org

For additional information contact Jeff Fluhr of the Downtown Development District at (225) 389-5520.