JEDCO

Business & Tax Incentives

Quality Jobs Program

NOT ALL CHANGES ARE EFFECTIVE APRIL 1, 2016 ARE REFLECTED BELOW. PLEASE CHECK AGAIN AS CHANGES ARE ONGOING.

The Quality Jobs Program provides both payroll and sales/use tax rebates to encourage businesses to locate or expand in Louisiana.

To qualify, a company must be in a targeted industry, including but not limited to manufacturing, technology, or oil and gas service companies. Employers must pay at least $14.50 in hourly wages and offer a basic health benefit plan with a value of at least $1.25 per hour for each new direct job. Within three years, new jobs must increase an employer’s annual payroll by $250,000 for companies with 50 or fewer full-time employees or $500,000 of new annual payroll for those employing more than 50.


NOTE:
Requires submittal of Advance Notification and a $250 non-refundable fee to Louisiana Economic Development. The Advance Notification can be submitted electronically on the Louisiana Economic Development’s Fastlane website.

The Facts

The Quality Jobs Program provides rebates as an incentive to encourage businesses to locate or expand existing operations in Louisiana, to create quality jobs, and to promote economic development by focusing on Louisiana Vision 2020’s traditional and seed clusters.

An Advance Notification Form and a $250 fee must be filed and received by the Office of Business Development, Business Incentives Division (BI) prior to starting construction, purchasing, installing equipment, or hiring.

Eligibility

A. To qualify a business must be in one of the following six Vision 2020 cluster industries:

  1. Biotechnology or biomedical or medical industries serving rural hospitals
  2. Micro-manufacturing
  3. Software, Internet & Telecommunications
  4. Environmental Technology
  5. Food Technology
  6. Advanced Materials;

OR, be a Manufacturer, NAICS Codes 113310, 211, 213111, 541360, 311-339, 511-512, or 54171;

OR, be an Oil and Gas Field Service Business, NAICS Code 213112, and must pay at least $30,000 annually for each new direct job created and business located in Louisiana is the national or regional headquarters of a multi-state business including Louisiana and the Gulf of Mexico;

OR, be a business that must or will have sales of at least 50% of its total annual sales to out-of-state customers or buyers, 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 for ultimate use, or to the federal government and meet one of these provisions:

Or, be located in a distressed region or at least fifty percent (50%) of the new direct jobs must be filled by persons who reside in a distressed region. A distressed region is defined as either:

  1. A parish which is within the lowest twenty five (25%) of parishes on per capita income;
  2. A census tract block group that is below the state median per capita income based upon the latest federal decennial census;
  3. An area designated as a distressed region must maintain its distressed status for the period of the initial quality jobs contract and during the contract renewal period.

B. Within 90 days of the effective date of qualifying for the incentive rebates, the employer must offer a basic health benefits plan to the individuals who fill the new direct jobs with a value of at least $1.25 per hour.

C. Employers must create a minimum of 5 new direct jobs and must meet one of these provisions:

  1. Employers with greater than 50 jobs must have a minimum of $500,000 gross annual payroll for new direct jobs within 3 years of the effective date of the contract;
  2. Employers with 50 jobs or less must have a minimum of $250,000 gross annual payroll for new direct jobs within 3 years of the effective date of the contract.
Benefits
Payroll Benefit Rate
  1. For new direct jobs that pay at least $14.50 in hourly wages and health care benefits, the benefit rate shall be 5%.
  2. For new direct jobs that pay at least $19.10 in wages and health care benefits, the benefit rate shall be 6%.
  3. For projects for which an Advance Notification was filed on or after July 1, 2015 the rebate shall not exceed the benefit rate multiplied by 80% of the gross payroll of new direct jobs. Starting July 1, 2018, the rebate shall be calculated by multiplying the benefit rate be 100% of the gross payroll of new direct jobs.
  4. The payroll rebate is an annual benefit for ten (10) years.
Sales Tax Rebate or Refundable Investment Income Tax Credit

1. Sales/Use Tax Rebate

  • A rebate of State Sales/Use Tax on materials purchased for new infrastructure, machinery, and equipment purchased during the construction period and used exclusively on site.
  • A portion of the Local Sales/Use Tax is available for rebate with an Endorsement Resolution from the local governing authority. The Resolution must be received prior to the application being approved. Sales tax dedicated to schools or bond indebtedness is not eligible for rebate.

-Or-

2. Refundable Investment Income Tax Credit. In lieu of the state/use tax rebate, a refundable investment income tax credit equal to one and one-half percent (1-1/2%) of certain capital expenditures is available.

Job Certification

To qualify for the state sales/use tax rebates or refundable investment income tax credit, 50% of all new jobs must meet one of the following:

  • Residency. A qualifying employee must be a resident of an Enterprise Zone in any parish within the state of Louisiana.
  • Receiving some form of public income assistance during the six months prior to being hired which may include WIC, FITAP, using the Louisiana Workforce Commission’s job service or enrollment in a technical college.
  • Lacking basic skills. A person below the 9th grade proficiency in reading, writing, math or unemployable by traditional standards.
Application Procedure
  • An Advance Notification must be received by Business Incentives Division prior to locating a business, expanding an existing business, or the creation of new direct jobs. A $250 processing fee must be submitted with the Advance Notification.
  • An Application must be filed on the prescribed form within 18 months after the first new direct job is hired. An application fee must also be submitted (minimum of $500, maximum of $15,000).
  • The application will be presented to the Board of Commerce and Industry for approval, if approved a Contract is entered into between the state of Louisiana and the company for up to 5 years. An option to renew the Contract for an additional 5 years is available.
  • A Project Completion Report is due on the prescribed form no later than 3 months after project completion.
  • Submit an affidavit at final cost within six months of project completion.
  • An Affidavit of Annual Certification is due within six months after the close of the fiscal year or after the governor’s signature, whichever comes later.
  • Participation in the Louisiana Quality Jobs Program excludes the use of the Enterprise Zone Program, Technology Commercialization Credit and Jobs program and/or the Corporate Tax Credit program.
  • Other filing fees apply

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

LOUISIANA ECONOMIC DEVELOPMENT
Eric Burton
Program Administration
Eric.burton@la.gov
Phone: (225) 342-5340
Website: www.louisianaeconomicdevelopment.com