New Market Tax Credit

Overview

The New Market Tax Credit program encourages investment in urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs.

Private-sector investors receive credit against federal income taxes. The program allows individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in Community Development Entities, or CDEs. Credits can be obtained every year the investment is held, for up to seven years of the credit period.

Benefits

Equity investments in low- to moderate-income areas may qualify for a 39% federal tax credit available through a special federal allocation for the Louisiana Gulf Opportunity Zone.

Qualifying projects may leverage the federal program through an additional 25% state tax credit (64% total credit).

May be used as equity for debt financing.

Eligibility

For eligibility information, visit Louisiana Department of Revenue's website at www.revenue.louisiana.gov.

How to Apply

To apply for Louisiana New Market Tax Credits for 2009, taxpayers must submit a New Market Tax Credit Application to Louisiana Department of Revenue. The application is available on the Department of Revenue's website as form R-10609.

All New Market Tax Credit applications are to be submitted via email to NewMarketTax.CreditApplication@la.gov.

Administration

For New Markets Tax Credit application information, contact:

Louisiana Department of Revenue, Policy Services Division
225.219.2780

For information regarding the New Market Tax Credit Program, contact the program administrator:

Mike Williams
225.342.5360
mwilliams@la.gov