JEDCO

Business & Tax Incentives

Business & Tax Incentive Options

Quality Jobs Program

Requires submittal of Advance Notification and a $250 non-refundable fee to Louisiana Economic Development and must be filed and received by the Office of Business Development, /business Incentives Division (BI) prior to starting construction, purchasing, installing equipment or hiring. The Advance Notification must be submitted electronically on the Louisiana Economic Development’s NextGEN portal of Fastlane website.

As a result of the 2020 Louisiana Legislature First Extraordinary Session, House Bill 19/Act 29 amended the rules for the Louisiana Quality Jobs Program due to the impact of COVID-19 on businesses. The following changes are effective July 1, 2020:

Eligibility has been expanded to “COVID-19-impacted retail businesses” with NAICS codes 44, 45, 721 or 722 for retailers, hotels and restaurants. A COVID-19-impacted retail business means a for-profit corporation, a limited liability company, a partnership or a sole proprietorship that had a physical and active operation in Louisiana on March 13, 2020 and ceased operations due to either one of the governor’s public health emergency proclamations or a mayor’s proclamation or executive order related to the public health emergency, or a decrease in customer activity or the inability to retain sufficient staff due to the COVID-19 public health emergency. The employer can have no more than fifty employees nationwide including affiliates on the date of the filing of the advance notification, which must be filed on or after July 1, 2020 and on or before December 31, 2021. No COVID-19-impacted retail businesses shall be eligible to earn benefits after June 30, 2023.

The Facts

The Quality Jobs program provides a cash rebate to companies that create well-paid jobs and promote economic development.

  • The program provides up to a 6% cash rebate of annual gross payroll for new direct jobs for up to 10 years.
  • Provides a state sales/use tax rebate on capital expenditures or a 1.5% project facility expense rebate on the total capital investment, excluding tax exempted items.

Eligibility

  • Bioscience, Manufacturing, Software, Clean Energy Technology, Food Technology, Advanced Materials, Headquarters of Multi-State Businesses, Aircraft MROs or Oil & Gas Field Service

OR

  • Must have at least 50% of annual sales out-of-state and/or to in-state customers or buyers if the product or service is resold by the purchaser to an out-of-state customer or buyer or to the federal government

OR

  • The employer is a business that spends fifty percent or more of its time performing services for its out-of-state parent company. These services include but are not limited to legal, marketing, finance, information technology, order management, distribution center operation, or overall operations support.

OR

Business engaged in the following sectors are not be eligible to participate in the program:

  • Retail employers identified by NAICS Code Sections 44 and 45
  • Business associations and professional organizations identified by NAICS Code 8139
  • State and local government enterprises
  • Real estate agents, operators and lessors
  • Automotive rental and leasing
  • Local solid waste disposal, local sewage systems and local water systems businesses
  • Employers engaged in the gaming industry identified by NAICS Code sections 713210 and 721120
  • Attorneys
  • All businesses identified by NAICS Code 5613
  • Nonprofit organizations, unless the department determines that the new direct jobs created by the organization would have a significant impact on Louisiana
  • Professional service firms are ineligible except for the case in which at least 50% of its services are provided for out-of-state customers or for a multi-state (parent) company
  • Construction companies are ineligible except for the case in which it is the corporate headquarters of a multi-state business or can demonstrate that at least 50% of its sales are to out-of-state customers
  • Medical professionals are ineligible except for those engaged in biomedical or biotechnology, servicing rural hospitals, or those in which at least 50% of its patient base is from out-of-state

Job and Payroll Requirements for Eligibility

  • 50 or fewer employees state-wide prior to the start date of the contract, an employer must create at least 5 new direct jobs with new direct job annual payroll of at least $225,000
  • 51 or more employees state-wide prior to the start date of the contract, an employer must create at least 15 new direct jobs with new direct job annual payroll of at least $675,000
  • These jobs must be full time, (full-time employees — working 30 hours or greater per week)
  • Provide a basic healthcare plan that is in compliance with federally mandated healthcare requirements or, if no federally mandated healthcare requirements exist, shall be determined to have a value of at least one dollar and twenty-five cents per hour.
  • Coverage must become effective no later than the first day of the month 90 days after the date of hire

Minimum Wage Requirement

  • The minimum wage requirement for new direct jobs are $18 per hour in wages
      • 4% rebate: $18/hour
      • 6% rebate: $21.66/hour

JEDCO
Margo Ruiz
Economic Information & Incentives Coordinator
Phone: (504) 875-3920
Fax: (504) 833-3923
Email: mruiz@jedco.org

LOUISIANA ECONOMIC DEVELOPMENT
Michaela Adegbe
Program Administrator
225.342.3571
michaela.adegbe@la.gov
Website: www.opportunitylouisiana.com