Establishes the High Impact Job Program within Louisiana Economic Development and provides for administration of the program (EN SEE FISC NOTE SD EX See Note)
Impact
The introduction of this bill is anticipated to have a positive impact on state employment rates by encouraging job creation in areas that need economic revitalization. By offering financial incentives to companies willing to pay above-average wages, the program seeks to foster higher employment standards and overall economic development within the state. Notably, the program prioritizes grants for projects in distressed areas, aiming to bolster the local economy significantly.
Summary
House Bill 507 establishes the High Impact Jobs Program within Louisiana Economic Development (LED) to incentivize the creation of jobs that offer wages above the parish average and provide a basic health benefits plan. The program aims to attract companies to invest in Louisiana, particularly in economically distressed areas, by offering reimbursable grants based on the wages paid for qualifying jobs. The bill outlines specific eligibility requirements for companies and includes provisions for application and funding.
Sentiment
The sentiment surrounding HB 507 appears supportive, particularly among proponents of economic development and job creation. Legislators and stakeholders view it as a necessary measure to attract businesses and stimulate hiring in Louisiana, especially in regions facing economic challenges. However, there may be concerns around the program's ability to deliver on its promises, particularly in terms of ensuring that created jobs are sustainable and equitable.
Contention
One notable point of contention is the sectors excluded from the program, such as gaming, retail sales, and local government enterprises. These exclusions may raise concerns about whether the bill adequately addresses the needs of industries that could play a significant role in job creation. Additionally, there could be discussions on how effective the eligibility criteria are in ensuring that funds are allocated efficiently and lead to genuine job creation without merely benefiting large corporations.
Provides for the Louisiana Department of Economic Development to establish and administer the Louisiana Industrial Product Certification Program (RE +$202,029 SG EX See Note)
Create the office of port development within the Department of Economic Development and create a port development advisory committee. (gov sig) (EN INCREASE GF EX See Note)
Provides for a flat rate for purposes of calculating corporate income tax and terminates certain corporate income tax exemptions, deductions, and credits (Item #4) (EN SEE FISC NOTE RV See Note)
Authorizes the creation of cooperative economic development districts affiliated with Southern University and Louisiana State University in East Baton Rouge Parish. (gov sig) (EN SEE FISC NOTE GF RV See Note)
Authorizes the secretary of DED to enter into state sales and use tax rebate contracts with procurement processing companies which recruit purchasing companies to La. (EN SEE FISC NOTE GF RV See Note)
Establishes a program to authorize the granting of ad valorem tax exemption contracts by the Board of Commerce and Industry for certain businesses (EN DECREASE LF RV See Note)