We already know the New Orleans‘ startup community is growing. Ever since Hurricane Katrina, the people of New Orleans have turned to starting their own businesses, launching tech companies, medical device companies, and other types of startups. They’ve adopted a “fend for yourself” mentality while sewing the fabric of the city back together.
For decades, New Orleans has been known for its music and culture. Mix in the growing startup community, and it’s a great place to relocate to launch that new startup. Sure many people want to flock to Silicon Valley or New York, but New Orleans has a flavor all its own.
If that’s not enough for you, New Orleans is now offering huge tax incentives to startups. Tourism and hospitality are huge industries in New Orleans, but technology, on the other hand, is not. According to The Atlantic, New Orleans still lags behind most of the country in tech workers. According to The Examiner, 1.4% of workers in the Big Easy are in the “computer and mathematical” fields; that number is 2.7% across the nation.
To correct that New Orleans is offering an incentive called the “Digital Interactive Media and Software Incentive.” This incentive offers startups with at least one employee a 35% tax credit on payroll for instate employees. The program also offers a 25% tax credit for development expenses.
“This means that 35% of your payroll for your in-state project managers, developers, testers, designers, and engineering management and 25% of your servers, developer and tester workstations, and development-related software, supplies, and rent are credited back to you at tax time. All of this, with no minimums required and no cap on the amount that you can credit,” The Examiner reported.
Could we see a rise in the Silicon Bayou?