Quality Jobs, Enterprise Zones attracting more businesses

Members of the Terrebonne Economic Development Authority (TEDA) convened last week, voting on several projects eligible for certain state tax incentives designed to foster investment in the local economy

Two specific programs, Quality Jobs and Enterprise Zones allow companies to apply for job and sales tax credits tied to the number of new jobs created or the amount of money the business invests in a project or both.

The Quality Jobs Program encourages businesses to expand in certain “cluster industries” by relocating to Louisiana or expanding existing operations. Unlike the Enterprise Zone program, the Quality Jobs program does not require validation by a local authority before a business venture can apply for state tax incentives.

Businesses applying for Enterprise Zone tax credits must create a minimum number of permanent new jobs hiring at least 35 percent of their employees from low-income groups including those receiving public assistance.

While businesses are not required to make a direct monetary investment, they must create new jobs in order to reap the benefits of sales and use tax rebates later applied to corporate and franchise taxes.

TEDA board members validated 10 new advance notifications, including a rent-to-own vehicle dealership and three proposals for new hotel construction

According to Katherine Gilbert, Business Retention and Expansion Director for TEDA, Terrebonne Parish initiated 20 advanced notifications and partners added 11 more in 2006.

Year-end figures for 2006 provided by TEDA show that businesses invested $188 million creating 1,059 new jobs with potential tax rebates upward of $7.5 million.

In addition, businesses generated more than $11 million in new payroll while retaining 1,834 jobs. The resulting state payroll tax was just under $450 million.

Based on these figures, Terrebonne sales tax coffers could receive over $900,000 from increased consumer spending.

Although businesses must go through an application process in order to receive the tax credits, Gilbert maintains potential savings are available to companies willing to take the necessary steps.

“Anybody can take advantage if you follow the rules,” Gilbert said.