Q: What is the Quality Jobs Program?
A: The Quality Jobs (QJ) Program provides payroll benefits as an inducement for businesses to locate or expand operations in the State of Louisiana.
Q: What are the benefits of the program?
A: It provides a rebate of up to 6% on annual wages for up to 10 years and the election of either a state sales/use tax rebate on capital expenditures or up to a 1.5% project facility expense rebate on the total capital investment, excluding tax exempted items.
Q: What is a Quality Jobs contract?
A: The Quality Jobs Contract is an agreement between the State of Louisiana and a qualified company that allows the company to receive the benefits of the QJ Program upon meeting all of the program requirements.
Q: How do I enter into a Quality Jobs contract?
A: Advance Notification — Filing an Advance Notification is the first step in the process. The Advance Notification is filed through FastLane. The Advance Notification must be filed before hiring, purchasing or construction begins.
Application — An application and fee for the Quality Jobs Program must be filed on the prescribed forms within 24 months after the department has received the advance notification and fee. Upon receipt of the application, fee, and addendum material, the application is reviewed by LED. Once accepted, the application is processed and presented at the next Board of Commerce and Industry meeting.
Contract — After the Board of Commerce and Industry approves the application, a contract is submitted electronically to the applicant for signature. Once returned to LED the contract is then sent to the Board of Commerce and Industry and finally to the Governor for signature.
Q: What is an Advance Notification?
A: The Advance Notification is the document notifying LED of a project before any action has occurred, such as hiring new employees or spending money.
Q: My advance was filed prior to 7/1/17, am I able to elect either Act 387 or Act 386?
A: No. Advances filed prior to 7/1/2017, must follow the provisions of Act 387. Only advances filed on or after 7/1/17 participate under the provision of Act 386.
Q: After a contract is executed, what documents are necessary to receive the benefits of the program?
A: The company must file the following documents with LED after the close of each fiscal year during the contract period:
- The Annual Certification Report (ACR) and fee, and the required addendum material, including a copy of the wage reports filed with the Louisiana Workforce Commission (ES4's) and information about the employee health care plan (coverage summary and cost detail) Certification of Primary Qualification illustrating the company's eligibility for the program
- The Rebate Spreadsheet illustrating the new direct jobs created
- The Baseline Report illustrating that the company has maintained the baseline jobs that existed prior to the start date of the contract.
* Additional information may be required. These forms can be found in Fastlane.
* LED will notify the Louisiana Department of Revenue (LDR) of the company's eligibility; the company must then file with LDR to receive the rebate.
Q: What is the earliest date I can start my contract?
A: The earliest contract start date is the date LED receives the Advance Notification and fee.
Q: How long is the contract effective?
A: The contract is effective for five years and may be renewed for an additional five years.
Q: Can I participate in the Quality Jobs Program and the Enterprise Zone Program at the same time?
A: No, you cannot participate in both programs at the same time.
Q: What is the difference in benefits between Quality Jobs and Enterprise Zone?
A: The Enterprise Zone Program provides a one-time job tax credit on each new direct job, and the Quality Jobs Program provides up to a 6% payroll rebate on annual payroll for new direct jobs for up to 10 years.
Q: If I originally applied for Enterprise Zone and later decide to apply for Quality Jobs (or vice versa), can you do so using the same Advance Notification?
A: Yes, an email or letter addressed to the program managers reflecting the change would suffice, provided that the election is made before the application due date.
Q: What is a new direct job?
A: A new direct job is a job or position that did not exist in the State of Louisiana prior to the start date of the contract and meets the requirements of the QJ program. For instance:
- If a company is expanding its workforce by creating 10 new jobs at the contract site, as long as those jobs are created after the start date of the contract and meet the minimum requirements (wages, health care, etc), then those jobs are considered new direct jobs.
- If Company A has a contract to perform services or supply goods in the State and then loses that contract to Company B to supply similar services or goods in the State, then any job gains at Company B associated with the contract change would not be considered new direct jobs.
- If Company A has 20 Louisiana employees and buys Company B, which has an existing QJ contract, then those 20 employees would not be considered new direct jobs. Similarly, if Company A buys Company B, who has 10 Louisiana employees, then those 10 employees would not be considered new direct jobs. If a company or its affiliate within the State of Louisiana has multiple locations in the State, the transferring of employees from one location to another is not considered a new direct job.
Q: How do I calculate the value of the health care plan under Act 387?
A1: If the company purchases health care insurance, the value of the plan is the company's actual cost for individual coverage (employee single). (If the applicant feels that the value of their plan is greater than the cost, a valuation may be performed. However, based on historical reviews, it is rare that the value would differ materially from the actual cost.)
A2: For a self-insured company, LED will determine the value through comparison with the cost of plans providing similar benefits (consulting with an insurance industry expert as needed).
Q: What is an in-state contract?
A: An in-state contract is a contract to perform services or supply goods that involves Louisiana jobs, including contracts associated with serving or supplying goods to certain offshore or out-of-state locations. For instance:
- A contract to deliver services or goods to a Louisiana location is considered an in-state contract. This includes contracts with public or private entities that are located outside of the State (e.g., contracts with global companies for their Louisiana locations, contracts with the Federal Government for a Louisiana location).
- A contract to deliver services or goods to an out-of-state location for which services and goods have historically been provided from Louisiana (e.g., provided by Louisiana facilities near state borders) is considered an in-state contract.
- A contract to perform services for or supply goods to an offshore Gulf of Mexico facility in an area that has historically been served from Louisiana (e.g., served from Port Fourchon) is considered an in-state contract.
Q: What is a baseline employee?
A: In order to receive benefits for the creation of new direct jobs as set forth in the contract, companies must also maintain its existing workforce which is determined by calculating the median statewide number of employees:
Contracts with Advances Filed Prior to January 20, 2023:
- Employees, including affiliates, work an average of 30 hours per week, as required by §1105
- Employees work in payroll periods including the 12th day of the month during the preceding four months completed prior to the contract effective date
- Four months of operation to use the median average are needed – the median is calculated by discarding the months with the highest and lowest number of employees, and averaging the number in the remaining two months. If three or less months of operation with employment prior to the contract effective date, average only the months with employment.
Contracts with Advances Filed on/or After January 20, 2023:
- Employees, including affiliates, work an average of 30 hours per week, as required by §1105
- Employees work in payroll periods including the 12th day of the month during the preceding six months completed prior to the contract effective date
- Six months of operation to use the median average are needed – the median is calculated by discarding the months with the highest and lowest number of employees, and averaging the number in the remaining four months. If five or less months of operation with employment prior to the contract effective date, average only the months with employment.
Q: Are there any local benefits?
A: Rebate of some local sales/use taxes paid is available at the discretion of the local governing authority in the parish in which the project is located. The local governing authority must submit an Endorsement Resolution to the Board of Commerce & Industry prior to Board action on the Company's application. For more information on local rebates, please contact the local governing authority where your business is located.
Q: Louisiana Domicile, what is it and how can I prove it?
A: Although a person can have multiple residences, they can only have one domicile. The determination of domicile can be quite complex, requiring living in Louisiana for at least six months out of the year, plus evidence of intent to remain here permanently. Domicile can be inferred from a totality of a person's actions and can be supported by documents such as a voter registration card or filing of Resident Tax Return IT 540.
Q: What is an Endorsement Resolution?
A: An Endorsement Resolution is a written motion issued by the local governing authority supporting a company's participation in the Quality Jobs Program that states the percentage of local sales tax to be rebated to the company.
Q: Who is the Board of Commerce & Industry?
A: The Board, composed of individuals appointed by the Governor of Louisiana, reviews and approves applications for certain tax incentive programs, including Enterprise Zone, Industrial Tax Exemption, Quality Jobs and Restoration Tax Abatement.
Q: What verification is required for the at least 50% out-of-state sales qualifier?
A: It is the applicants responsibility to have an independent Louisiana CPA annually verify that the contract site meets the out-of-state sales requirements using the QJ - AUP 50 % sales out of state.