(Washington, D.C.) – U.S. Sen. David Vitter today announced the bicameral agreement on critical tax extension legislation for Louisiana.  Included in the legislation is the extension of the Gulf Opportunity (GO) Zone tax incentives that are vital to business investment and development in areas devastated by the hurricanes.

          “The extension of the GO Zone tax incentives empowers the free market to entice and support business development in Louisiana,” said Vitter.  “These incentives provide a real and immediate boost to our still-recovering economy.”   

          The extension of the GO Zone benefits allows more time to take advantage of the bonus depreciation tax deduction.  This benefit allows a tax deduction up front based on the reduction in value in an investment over time.  The bonus will provide major incentives for businesses to develop large projects now because of this generous tax benefit.

          “These tax incentives will spur robust job growth as more businesses make use of them,” said Vitter.  “And the job opportunities created by these incentives will also help those Louisianans displaced by the storms return home.”

          Currently, the GO Zone bonus depreciation is available for real estate projects that are placed in service by December 31, 2008, and for other personal property investments placed in service by December 31, 2007. 

          This agreement extends the eligibility for real estate property in many parishes until December 31, 2010,  which provides much needed time to get major projects completed in time to take full benefit of this incentive. Also, it extends the deadline for personal property investments that will be used within the building and are in place within three months of the building's completion.

          This GO Zone extension applies to parishes that suffered damage from hurricanes Katrina or Rita to 60 percent or more of their occupied housing units.

          “The bureaucracy of FEMA and other federal and sate governmental programs have not provided real and immediate rebuilding and development,”  Vitter said.  “With these incentives for the business community, our recovery can move past the red tape and bring genuine opportunity and change back to Louisiana.”