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Louisiana Quality Jobs Rebate

The Quality Jobs (QJ) program provides a cash rebate to companies that create well-paid jobs and promote economic development in Louisiana: Up to a 6% rebate on annual payroll expenses for up to 10 years and either a state sales/use tax rebate on capital expense or a 1.5% project facility expense rebate for qualifying expenses.

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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

Employer is located in a parish that is within the lowest 25% of parishes based on per capita income:

  • 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.
  • 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:

  • 4% rebate: $18/hour
  • 6% rebate: $21.66/hour

All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register.

Eligibility Scenarios

Possibly. A business has to create new direct jobs for the state of Louisiana. A new direct job is a position created on or after the contract effective date, which is in addition to the number of jobs in the employment baseline established statewide including affiliates that meet the minimum requirements of the program. For example:

If a business reduces its workforce by 50 employees at one site and adds 50 jobs at another site, then there is no new net gain of jobs to the state.

On the other hand, if a business reduces its workforce by 25 jobs at one site and increases the workforce by 50 jobs at the QJ site, then there is a net increase to the state.

NO. When a business acquires another business the jobs that were at the acquired business are not considered new jobs to the state for the new business owner. There must be a net increase of new jobs to the state. For example:

Company A Manufacturers, Inc. has acquired Company B, Inc., a local company with 15 existing employees. Company A Manufacturers, Inc. plans to make some modifications to the structure of Company B, Inc., and retains their employees. The 15 employees retained by Company A Manufacturers, Inc., are not considered net new jobs to the state.

Possibly. It is not required to demonstrate the minimum gross payroll and the minimum number of new direct jobs within the first two fiscal filings. However, if these minimum thresholds are not met in the third fiscal filing the contract is cancelled and all benefits are owed back to the State. Thereafter, if at any other time during the remaining contract period the employer applies for a rebate and the minimum verified gross payroll and new direct jobs are not demonstrated, all rebates shall be suspended. No QJ benefits shall accrue or be paid to the employer during a period of suspension.

The Process

Getting started is just a click away. Submit advance notification and pay online prior to construction, hiring, and/or making purchases toward the project’s capital investment.

All forms and documents related to this program must be submitted online via FastLane NextGen.

View fees associated with this incentive. Fees are nonrefundable. 

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1

Submit Advance Notification with fee online then begin the project.

Disclosure Authorization is required and should be submitted in FastLane if the contact designee is a representative other than a company official.

Advances are valid for 24 months.

2

File for an Unemployment Insurance ID number with the Louisiana Workforce Commission.

3

Complete the application on LED’s website and submit any required addendum materials to LED for review.

4

LED reviews the application and submits it to LDR/LWC for review, once approved, it is presented to the Board of Commerce and Industry.

5

If approved, the Board issues contract through LED.

6

File for annual payroll rebate with LED.

7

Submit Project Completion Report and Affidavit of Final Cost to LED.

1

Submit Advance Notification with fee online then begin the project.

Disclosure Authorization is required and should be submitted in FastLane if the contact designee is a representative other than a company official.

Advances are valid for 24 months.

2

File for an Unemployment Insurance ID number with the Louisiana Workforce Commission.

3

Complete the application on LED’s website and submit any required addendum materials to LED for review.

4

LED reviews the application and submits it to LDR/LWC for review, once approved, it is presented to the Board of Commerce and Industry.

5

If approved, the Board issues contract through LED.

6

File for annual payroll rebate with LED.

7

Submit Project Completion Report and Affidavit of Final Cost to LED.

Next Steps

Upon Louisiana Economic Development’s (LED’s) receipt of the advance notification and fee the project may begin following these steps:

Includes construction, purchase of equipment, building and materials, hiring, and other eligible capital investment transactions.

Contact the Louisiana Department of Revenue (LDR) to apply for a sales and use tax registration certificate and taxpayer account number.

Contact the Louisiana Workforce Commission to apply for an unemployment identification number.

Application and fee must be submitted within 24 months of Louisiana Economic Development’s (LED’s) receipt of advance notification and fee. Failure to file an application within the prescribed timeframe will result in the expiration of the advance notification.

Upon receipt of application and fee, LED will review application for compliance, verify submitted information, and provide a copy of the application for review to Louisiana Workforce Commission (LWC) and Louisiana Department of Revenue (LDR). Upon receipt of letter of no objection by LWC and LDR, application is presented for consideration to the Board of Commerce & Industry.
Note: In order to be considered at the next Board of Commerce and Industry meeting, completed applications are due for review no later than 45 days prior to Board meeting date.

Application is presented for consideration to the Board of Commerce & Industry. Applicants will be notified within seven days of the board meeting with instructions, time and location of meeting. Applicants should have someone present to answer questions the Board may have regarding information contained in the application. (The board convenes every other month, meeting six times a calendar year.)

Upon application approval by the Board of Commerce & Industry, a contract will be sent electronically from LED to the designated contract signatory via Adobe Sign. Contract should be reviewed and signed, within 30 days of receipt. Please note, on the signature page, the company contact refers to an employee of the company. A fully executed contract with the Governor’s signature will be emailed to you.
Note: Contracts will be executed when all information is provided and complete. If necessary, LED may request additional information.

Initial ACR(s), supporting documentation and fees are due within six months after the close of your fiscal filing year or after Governor’s signature, whichever comes later. Each subsequent ACR is due six months after the close of your fiscal filing year.
Note: Appropriate form(s) specific to your contract must be used (forms may be downloaded from the document checklist, completed and uploaded in the ACR).

The same approval process used for the original application and contract will be followed for renewal. A Renewal Application and fee must be submitted within 60 days of the initial five-year contract expiration. LED will review renewal application, and upon approval, renewal application will be presented for consideration by the Board of Commerce and Industry

If at any time during the term of a contract, a name change, transfer of ownership, or change in schedule occurs; the appropriate contract amendment and fee must be submitted to LED for approval online within 90 days of change. Upon approval, request will be presented for approval to the Board of Commerce and Industry.

Upon meeting the requirements of the Quality Jobs Program, an employer must meet the hiring requirements as set forth in Section 4 of the Quality Jobs Contract. When all documentation has been filed and LED has certified compliance, submit rebate claim or PFER request to LDR within six months of project completion. Contact Office Audit Division at 225-219-2270 for additional information.

File online with LED within six months of project completion. Either the sales and use tax rebate, or the investment tax credit/project facility expense rebate must be elected for all project periods. Once an election is made on the initial PCR, the election will remain for all possible subsequent project periods throughout the life of the contract.

  1. File online with LED within six months of project completion.

If seeking sales and use tax rebates or the investment tax credit/project facility expense rebate, in addition to meeting the requirements of the Quality Jobs Program an employer must meet the hiring requirements as set forth in Section 4 of the Quality Jobs Contract.

Only if seeking an additional sales and use tax rebate or investment tax credit period: A project exceeding 30 months must separate the project into phases, maximum of four 30 month project periods, with no phase having a project period greater than 30 months (additional project periods cannot start sooner than 30 months from the prior period start date):

  1. Submit the Advance Notification Quality Jobs Additional Period – Sales and Use Tax / ITC and fee before beginning the additional project period.
  2. Submit the Application Sales and Use Tax/Investment Tax Credit (Additional Period) and fee within three months after the project is complete.
  3. Submit the Project Completion Report and fee within six months after the project is completed.
  4. Submit the Affidavit of Final Cost (AFC) and fee within six months of the completion of the project.
  5. File for sales and use tax rebate or refundable investment tax credit. Submit rebate claim or refundable ITC request to the Louisiana Department of Revenue within six months after the project has been completed. You must complete additional forms issued by the LDR. Contact Office of Audit Division at 225.219.2270 for additional information.

FAQs

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The Quality Jobs (QJ) Program provides payroll benefits as an inducement for businesses to locate or expand operations in the State of Louisiana.

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.

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.

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.

The Advance Notification is the document notifying LED of a project before any action has occurred, such as hiring new employees or spending money.