The Quality Jobs Program provides benefits 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.
ELIGIBILITY
A. To qualify, a business must be in one of the following six Vision 2020 cluster industries:
1. Biotechnology and Biomedical
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.
B. Have a number of net new Louisiana employees working an average of 30 hours per week.
C. A basic health plan (basic hospital care and basic physician care) must be offered to all new Quality Job employees within 90 days. The employer must provide a basic health care plan to the individuals it employs in new direct jobs in this state which shall be determined by the Department of Economic Development to have a value of at least one dollar and twenty-five cents per hour.
BENEFITS
A. Benefit Rate – the rate will be determined
1. For new direct jobs which pay at least Fourteen dollars and fifty cents per hour in wages and health care benefits upon hiring, the benefit rate shall be 5%.
2. For new direct jobs which pay at least Nineteen dollars and ten cents per hour in wages and health care benefits upon hiring, the benefit rate shall be 6%.
B. Payroll Benefit
1. The annual benefit is calculated by multiplying the benefit rate times the gross payroll of the new direct jobs as certified by the Louisiana Economic Development.
C. Sales/Use Tax Rebate or Investment Tax Credit
1. In lieu of the 4% sales tax rebate and the local rebate, the contract holders can opt for a 1.5% Refundable Investment Tax Credit. The Refundable Investment Tax Credit (ITC) is a credit equal to 1.5% of capitalized investment (for Federal Income Tax purposes) minus cost of land, interest, existing building acquisition costs, and the portion of manufacturing equipment that is exempt under Sales/Use tax laws. The credit is earned the year the project is placed in service. The ITC may not be claimed until the Project Completion Report is executed. The rebate period cannot exceed 30 months.
2. A portion of the local sales/use tax is available for rebate with an Endorsement Resolution from each local political subdivision. The Resolution(s) must be received prior to the application approval.
D. Must create a minimum number of permanent net new jobs at the EZ site and 35% of net new jobs must meet at least one of the four Certification Requirements (Requirements). These jobs must be created from Project/Construction Start Date. Either:
Increase your current workforce by 10% (minimum of 1) within the first 12 months
OR
Create a minimum of 5 net new jobs within the first 24 months.
The jobs must be filled with:
Louisiana resident, someone living in LA at least 30 consecutive days prior to being hired.
OR
US citizen that becomes domiciled in Louisiana within 60 days after employment.
JOB CERTIFICATION - 35% of all jobs generating JTC must meet noe of the following:
A. Residency
1. If the contract holder is located in an Urban parish (2000 population over 75,000), the employee must live in an EZ in the state.
OR
2. If the contract holder is located in a Rural parish (2000 population 75,000 or less), and located in an EZ, the employee may live anywhere in the parish the company is located.
OR
3. If the contract holder is located in a Rural parish and not located in an EZ, the emplyee must live in an EZ in the state.
OR
4. If the contract holder is located in an Economic Development Zone (EDZ), the employee may live anywhere in the parish the company is located.
B. Receiving some form of public income assistance may include WIC, FTAP, using LDOL by listing your jobs and hire a LDOL referral, (employment assistance), attended a technical college within the six months prior to being hired.
C. Lacking basic skills. A person below the 9th grade proficiency in reading, writing, or math.
D. Physically challenged.
APPLICATION PROCEDURE
A. An Advance Notification must be received by Business Incentives Services prior to locating a business, expanding an existing business, or the creation of new direct jobs. A $100 processing fee must be submitted with the Advance Notification.
