News Summary
Louisiana’s economic development officials have introduced the High Impact Job Program, which prioritizes job quality by incentivizing companies to offer salaries above the parish average. The program aims to create higher-paying jobs with grants correlated to salary levels, targeting improvement in wage standards across the state. Although it has the potential to create quality jobs, some critics remain skeptical about its effectiveness in enhancing salaries amidst existing low averages.
Baton Rouge, Louisiana — Louisiana’s economic development officials have approved a new program aimed at shifting the state’s focus from simply creating new jobs to emphasizing the quality of these positions based on their wages. The House Committee on Commerce has endorsed House Bill 507, which introduces the Louisiana High Impact Job Program, prioritizing job quality over quantity.
The High Impact Job Program will offer incentives to companies that create jobs with salaries above the parish average where they operate. Under this new initiative, businesses can qualify for grants that directly correlate with the salary levels offered to new hires. Companies that provide salaries at 125% of the parish average will receive grants covering 18% of each salary, while those increasing pay to 150% of the average will earn grants of 22%. For companies investing in “distressed areas,” a designation still being refined, the grants will be 8% for salaries at 110% of the parish average.
Significantly, there are no caps on the number of jobs a company may add to qualify for these incentives. However, there are limits on the total grant amount, with a ceiling set at $200,000 per job annually, and an overall allocation of $125 million for grants each year. To be eligible for the High Impact Jobs grants, employers must also provide health insurance to their employees. New hires must be classified as full-time direct employees or work for a subsidiary listed in the grant contract, while remote jobs can qualify if the employees are recognized as Louisiana residents per state tax laws.
The funding for these grants will be sourced from corporate income and franchise taxes, although it is important to note that the franchise tax is scheduled to be eliminated on January 1, 2026. The state projects the average cost of the High Impact Job Program will be around $69.4 million each year for the next five years.
This program will operate alongside the existing Quality Jobs program, which provides a 6% payroll rebate for 10 years and state sales tax breaks related to job creation and facility expenses. The new High Impact Job Program, however, will only offer benefits for three years but is eligible for renewal for an additional two years, making its overall duration shorter than that of the Quality Jobs incentive.
The initiative is also welcoming to small businesses aiming to create jobs that pay above the average salary in their respective parishes. Moving forward, the House Appropriations Committee will review the program to assess its financial implications.
In conjunction with the introduction of the High Impact Job Program, the state has eliminated eight business incentive programs as of June 30, aiming to slash state obligations by an estimated $180 million to $225 million. Even as the Quality Jobs program winds down, it will continue to accept applications until its scheduled sunset on June 30. Businesses already enrolled in the Quality Jobs program can transition to the High Impact Jobs Program but cannot simultaneously take advantage of both incentives.
Currently, 16 projects have applied for Quality Jobs rebates for 2025, which are expected to create over 1,500 direct jobs, contributing nearly $167 million in payroll to the local economy. This new program is modeled after successful initiatives from states like Georgia, North Carolina, and Texas, which have seen similar efforts yield promising results.
Despite the potential benefits, some critics argue that the High Impact Jobs Program may not result in significant wage improvements. They note that the incentives are tied to existing below-average salaries in many parishes across Louisiana. Reports indicate that the state’s average weekly wage stands at $1,195, ranking Louisiana 39th nationally, with lower averages evident in 47 of its parishes.
The definition of “distressed areas” is still under discussion, with criteria potentially incorporating unemployment rates and eligibility for federal tax breaks. Furthermore, the Legislative Auditor previously highlighted that the Quality Jobs program was a net loss for the state, with only a third of the investment spending contributing to the benefit of Louisiana companies.
Deeper Dive: News & Info About This Topic
- LA Illuminator: Louisiana Incentives
- NOLA: Louisiana Economic Development
- Unfiltered with Kiran: Louisiana Jobs
- BASF: Tech Academy Louisiana
- 710 KEEL: SkyWest Jobs in Shreveport
- Wikipedia: Louisiana
- Google Search: Louisiana Economic Development
- Google Scholar: Louisiana Jobs
- Encyclopedia Britannica: Louisiana
- Google News: Louisiana Economic News
