Louisiana Main Street Redevelopment Incentive Grant
The Louisiana Main Street Redevelopment Incentive Grant is a matching fund grant program designed to encourage the revitalization of historic commercial district properties in designated Louisiana Main Street districts. Community reinvestment utilizing historic preservation practices improves community economic health by fostering renewed interest in shopping, working, and living in historic commercial districts, and enhances the cultural tourism experience.
RIG program requirements include:
- Matching funds: The RIG requires a dollar-for-dollar cash match, paid on a reimbursable basis.
- Restoration grant: Funds must be utilized for a restoration of the interior or exterior of a commercial storefront, with two project sizes of at least $5000 or $20,000.
- Main Street: Applicants must be located in a designated Louisiana Main Street district, and all RIG applications must go through a designated Main Street organization.
See the application for full instructions, and contact BCC if you are interested in applying.
Louisiana Historic Rehabilitation Tax Credits
The Louisiana Division of Historic Preservation administers the Federal Rehabilitation Tax Credit in conjunction with the National Park Service (NPS) and Internal Revenue Service (IRS) and two State tax credits in conjunction with the Louisiana Department of Revenue (LDR). The purpose of tax credits is to encourage the preservation of historic buildings through incentives to support rehabilitation of historic and older buildings. Since the inception of the Federal Rehabilitation Tax Credit, Louisiana has been a leader in certified tax credit projects, generating over $2 billion in private reinvestment in Louisiana communities. The State Commercial Tax Credit has leveraged more than $350 million in private reinvestment in Louisiana Downtown Development Districts and Cultural Districts.
What is a tax credit?
A tax credit is a direct, dollar for dollar, reduction in the amount of money a taxpayer must pay in taxes for a given year. For example, if a taxpayer owes $5,000 in taxes to the Internal Revenue Service, but has a $3,000 credit, he only pays $2,000. Thus he pockets the $3,000 he would otherwise have to pay in taxes. A credit is much better than a deduction which merely reduces a taxpayer’s income and puts him in a lower tax bracket.
Explore Louisiana Historic Rehabilitation Tax Credits at
the Louisiana Office of Cultural Development, Division of Historic Preservation.
Federal Historic Rehabilitation Tax Credits
- The Federal Rehabilitation Tax Credit is for 20% of the costs of rehabilitation expenses for an income producing building.
- The credit is available for income-producing properties that are contributing elements to a National Register Historic District, or individually listed on the National Historic Register. All properties must be certified by the National Park Service.
- To qualify, the rehabilitation work must exceed the adjusted basis for the building (either the purchase price minus the value of the land, or the current depreciated value).
Explore Federal Historic Rehabilitation Tax Credits at
the Department of the Interior.
State of Louisiana Restoration Tax Abatements
The Restoration Tax Abatement, or RTA, program provides five-year abatement of the ad valorem property taxes on the renovations and improvements of existing commercial structures and owner-occupied residences.
- Equipment that becomes an integral part of that structure can qualify for this exemption
- Acquisition cost of the structure or the land cannot quality for this exemption
- Option for a five-year renewal with local governing authority approval
Explore State of Louisiana Restoration Tax Abatements at
the Louisiana Economic Development website.
State of Louisiana Cultural Product Districts
Louisiana's Cultural Products Districts provide for tax free sales of original works of visual art, as well as tax credits for commercial and residential renovation within the specified district. There are 21 separate districts in New Orleans alone, including the Bayou Road African American Heritage Cultural District, City Park Museum District and the Lafitte Greenway Cultural District on the Broad Street Corridor.
The Cultural Districts Program:
- Allows a local government to designate a Cultural District for the purpose of revitalizing a community by creating a hub of cultural activity.
- Allows income and corporate franchise tax credits for eligible expenses for rehabilitation of owner-occupied or revenue generating historic structures in a Cultural District.
- Provides an exemption from sales and use taxes for proceeds received from the sale of original, one-of-a-kind works of art from locations established within the Cultural District.
- Requires local governments who designate such districts to report on impact to their community annually.
- Requires CRT to collate reports received and submit a single report to the legislature biannually beginning in 2011.
Explore State of Louisiana Cultural Product Districts at
the Department of Culture, Recreation and Tourism.