HLS 25RS-804 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 507
BY REPRESENTATIVE EMERSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
ECONOMIC DEVELOPMENT: Establishes the High Impact Job Program within
Louisiana Economic Development and provides for administration of the program
1 AN ACT
2To enact Chapter 47 of Title 51 of the Louisiana Revised Statutes of 1950, to be comprised
3 of R.S. 51:2771, relative to the High Impact Jobs Program; to establish the program;
4 to provide relative to qualification for and administration of the program; to provide
5 relative to the powers and duties of Louisiana Economic Development and its
6 secretary; to provide relative to special treasury funds; to provide relative to the
7 transfer, deposit, and use, as specified, of monies in certain special treasury funds;
8 to provide for an effective date; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. Chapter 47 of Title 51 of the Louisiana Revised Statutes of 1950,
11comprised of R.S. 51:2771, is hereby enacted to read as follows:
12 CHAPTER 47. LOUISIANA CAPITAL INVESTMENT TAX CREDI T HIGH
13 IMPACT JOBS PROGRAM
14 ยง2771. High Impact Jobs Program; fund
15 A. For the purposes of this Section, the following terms shall have the
16 following meanings, unless context clearly indicates otherwise:
17 (1) "Basic health benefits plan" means individual coverage for basic hospital
18 care, physician care, and health care, effective no later than the first day of the month
19 90 days after hiring, that provides the same coverage as that provided to executive,
20 administrative, and professional employees who are exempt from the minimum wage
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1 and maximum hour requirements of the federal Fair Labor Standards Act, 29 U.S.C.
2 201 et seq., and which LED determines to be in compliance with federally mandated
3 healthcare requirements, or if no federally mandated healthcare requirements exist,
4 shall be determined to have a value of at least one dollar and twenty-five cents per
5 hour regularly worked. For the purposes of this Paragraph, the term "value" shall
6 mean the cost to the company or the cost of equivalent coverage.
7 (2) "Company" means an entity authorized to do business in Louisiana
8 pursuant to state law.
9 (3) "Distressed Area" means an area that is economically distressed or
10 underdeveloped as determined by rule and approved by the secretary.
11 (4) "Expenditure verification report" means a report of expenses prepared
12 by an independent certified public accountant, paid for by the company, in
13 accordance with R.S. 36:104.1.
14 (5) "Jobs" means positions of employment that meet all of the following
15 criteria:
16 (a) Did not exist in the state for that employer prior to the effective date of
17 the incentive contract entered into pursuant to the provisions of this Chapter.
18 (b) Are for full-time, at-will employees. Does not include seasonal or
19 temporary positions.
20 (c) Are directly employed by the company or a named subsidiary in the
21 contract.
22 (d) Are filled onsite or remotely by Louisiana employees of the company or
23 a named subsidiary in the contract.
24 (e) Include a basic health benefits plan.
25 (f) Is approved by the secretary.
26 (6) "LED" means Louisiana Economic Development.
27 (7) "Louisiana employee" means a person who qualifies as a resident
28 individual pursuant to R.S. 47:31(1).
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1 (8) "Parish average wage" means the average wage in a parish as determined
2 annually by the United States Department of Labor, Bureau of Labor Statistics, or
3 its successor agency.
4 (9) "Project site" means a site in Louisiana identified for a project on the
5 program application.
6 (10) "Qualifying company" means a company that is certified by LED as
7 meeting the eligibility requirements of this Section and that has executed a contract
8 with LED providing the terms and conditions for its participation in the program
9 provided for in this Section.
10 (11) "Secretary" means secretary of Louisiana Economic Development.
11 (12) "Wages" means compensation of an employee based on time worked
12 or output of production but does not include overtime compensation.
13 B. There is hereby established within LED the High Impact Jobs Program,
14 hereafter referred to in this Section as the "program", to encourage companies to
15 create jobs that pay above the parish average wage and offer a basic health benefits
16 plan. LED shall offer the following types of incentives pursuant to the program:
17 (1) A reimbursable grant of a percentage of annualized wages paid for
18 qualifying jobs, not to exceed two hundred thousand dollars per year, per job, based
19 upon the parish average wage paid where the project site is located at the time the
20 incentive contract is executed, subject to the following conditions:
21 (a) Eight percent for a project located in a distressed area with wages equal
22 to or greater than one hundred and ten percent of the parish average wage.
23 (b) Eighteen percent for a project located in a parish with wages equal to or
24 greater than one hundred and twenty-five percent but less than one hundred and fifty
25 percent of the parish average wage.
26 (c) Twenty-two percent for a project located in a parish with wages equal to
27 or greater than one hundred and fifty percent of the parish average wage.
28 (2) A reimbursable grant to retain highly skilled workers with advanced
29 degrees, as approved by the secretary in accordance with program rules.
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1 C.(1) A company may be eligible for participation in the program if it meets
2 either of the following criteria and is approved by the secretary:
3 (a) Pays wages greater than one hundred ten percent of the parish average
4 wage where the project is located.
5 (b) Employs highly skilled workers with advanced degrees.
6 (2)(a) Companies primarily engaged in the following sectors are ineligible
7 for participation in the program:
8 (i) Gaming.
9 (ii) Retail sales.
10 (iii) Professional sports teams.
11 (iv) State and political subdivision enterprises.
12 (v) Automotive rental and leasing.
13 (vi) Local solid waste disposal.
14 (vii) Local sewage systems.
15 (viii) Local water systems.
16 (xi) Construction companies.
17 (b) LED may promulgate rules listing other professions or industries which
18 are eligible or ineligible for program participation.
19 D.(1) LED shall establish an application process for the program and
20 establish an application fee for the program in accordance with R.S. 36:104.
21 (2) Upon receipt of a company's application and the fee imposed pursuant
22 to Paragraph (1) of this Subsection, LED staff shall review the application and any
23 other information the secretary deems appropriate for a determination of the project's
24 eligibility.
25 (3) If LED staff determine that an applicant is eligible, funding is available,
26 and that a grant would be in the best interest of the state, the secretary may execute
27 a contract with an applicant that contains the terms and conditions of the applicant's
28 participation in the program. The initial term of the contract shall be for three years;
29 however, the contract may be renewed for a single two-year period if the grant
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1 recipient has complied with the provisions of this Section and all the terms of the
2 contract and has not performed or failed to perform any act which would have made
3 the applicant default on any of the terms of the contract.
4 (4)(a) A qualifying company may make a request for reimbursement by
5 submitting to LED an expenditure verification report detailing qualifying
6 expenditures. The qualifying company may submit the request for reimbursement
7 either annually or at the end of the initial and renewed contract periods, as
8 applicable.
9 (b) LED staff shall review the expenditure verification report and issue
10 reimbursement payments for qualifying expenses.
11 (5) If an application is denied or if a reimbursement request is denied in
12 whole or in part, LED shall issue a written basis for denial.
13 E. A qualifying company shall not receive any other incentive administered
14 by LED for any expenditure or job for which it has received a grant pursuant to the
15 provisions of this Section.
16 F. The secretary may promulgate rules in accordance with the Administrative
17 Procedure Act to carry out the provisions of this Section. Notwithstanding any
18 provision of the Administrative Procedure Act to the contrary, rules promulgated
19 pursuant to the provisions of this Section are subject to the oversight of the House
20 Committee on Ways and Means and the Senate Committee on Revenue and Fiscal
21 Affairs.
22 G. No incentive shall be awarded pursuant to the provisions of this Section
23 for applications received on or after July 1, 2035.
24 H.(1) There is hereby established in the state treasury as a special fund the
25 High Impact Job Fund, hereafter referred to in this Section as the "fund." Beginning
26 July 1, 2025, and continuing each fiscal year thereafter, after compliance with the
27 provisions of Art. VII, Sec. 9(B) of the Constitution of Louisiana relative to the Bond
28 Security and Redemption Fund, the treasurer shall deposit monies into the fund as
29 follows:
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1 (a) Until the collected value of current corporate income tax collections for
2 the fiscal year reaches one billion dollars, the treasurer shall deposit ten percent of
3 all such collections into the fund.
4 (b) If the collected value of current corporate income tax collections for the
5 fiscal year exceeds one billion dollars, the treasure shall deposit all such collections,
6 up to a maximum of twenty-five million dollars, into the fund.
7 (2) Monies in the fund shall be invested in the same manner as monies in the
8 state general fund. Interest earned on investment of monies in the fund shall be
9 deposited into the fund. Unexpended and unencumbered monies in the fund at the
10 end of the fiscal year shall remain in the fund.
11 (3) Monies in the fund shall be appropriated to LED for awarding incentives
12 pursuant to the provisions of this Section.
13 Section 2. The provisions of this Act shall become effective July 1, 2025.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 507 Original 2025 Regular Session Emerson
Abstract: Establishes the High Impact Jobs Program (program) within La. Economic
Development (LED) and provides for administration, qualifications, and funding of
the program.
The program established pursuant to proposed law authorizes the secretary of LED to grant
any of the following incentives to companies authorized to do business in La. pursuant to
state law.
(1)A reimbursable grant of a percentage of annualized wages paid for qualifying jobs,
not to exceed two hundred thousand dollars per year, per job, based upon the parish
average wage paid where the project site identified on the company's application is
located at the time the incentive contract is executed, subject to the following
conditions:
(a)Eight percent for a project located in a distressed area with wages equal to or
greater than one hundred and ten percent of the parish average wage.
(b)Eighteen percent for a project located in a parish with wages equal to or
greater than one hundred and twenty-five percent but less than one hundred
and fifty percent of the parish average wage.
(c)Twenty-two percent for a project located in a parish with wages equal to or
greater than one hundred and fifty percent of the parish average wage.
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(2)A reimbursable grant to retain highly skilled workers with advanced degrees, as
approved by the secretary in accordance with program rules.
Proposed law defines "wage" as compensation of an employee based on time worked or
output of production but does not include overtime compensation. Further defines "job" to
mean a position of employment that meet all of the following criteria:
(1)Did not exist in the state for that employer prior to the effective date of the incentive
contract entered into pursuant to the provisions of proposed law.
(2)Are for full-time, at-will employees. Does not include seasonal or temporary
positions.
(3)Are directly employed by the company or a named subsidiary in the contract.
(4)Are filled onsite or remotely by Louisiana employees of the company or a named
subsidiary in the contract.
(5)Include a basic health benefits plan.
(6)Is approved by the secretary.
Further defines "parish average wage" to mean the average wage in a parish as determined
annually by the U.S. Dept. of Labor, Bureau of Labor Statistics, or its successor agency.
Proposed law authorizes a company that meets either of the following criteria to participate
in the program if it is approved for participation by the secretary of LED:
(1)Pays wages greater than 110% of the parish average wage where the project is
located.
(2)Employs highly skilled workers with advanced degrees.
Further excludes companies primarily engaged in the following sectors from participation
in the program:
(1)Gaming.
(2)Retail sales.
(3)Professional sports teams.
(4)State or political subdivision enterprises.
(5)Automotive rental and leasing.
(6)Local solid waste disposal.
(7)Local Seweage systems.
(8)Local water systems.
(9)Construction companies.
Proposed law authorizes LED to promulgate rules listing other professions or industries
which are eligible or ineligible for program participation.
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Proposed law requires LED to establish an application process and an application fee
pursuant to present law (R.S. 35:104). Requires LED staff to review an application and any
other information the secretary deems appropriate for a determination of the project's
eligibility for participation. Authorizes the secretary to execute a contract with an appliant
pursuant to proposed law if LED staff determines that the applicant is eligible, funding is
available, and that a grant to the applicant would be in the best interest of the state. Requires
the initial contract pursuant to proposed law to be for a three-year term and authorizes a
single two-year extension if the applicant has not breached the terms of the contract.
Proposed law authorizes a grant recipient to make a request for reimbursement by submitting
an expenditure verification report to LED detailing qualifying expenditures. Authorizes
submission either annually or at the end of the initial and renewed contract periods, as
applicable. Requires LED to issue a written basis for denial of any reimbursement request.
Proposed law prohibits a participating company from receiving any other incentive
administered by LED for any expenditure or job for which the participating company
received a grant pursuant to proposed law.
Authorizes the secretary to promulgate rules in accordance with the Administrative
Procedure Act to carry out the provisions of proposed law. Grants oversight of such rules
to the House Committee on Ways and Means and the Senate Committee on Revenue and
Fiscal Affairs.
Proposed law prohibits the awarding of incentives pursuant to proposed law on or after July
1, 2035.
Proposed law establishes the High Impact Jobs Fund in the treasury as a special fund and
provides for the use, investment, and administration of monies in the fund. Requires monies
in the fund to be appropriated to LED for awarding incentives pursuant to proposed law.
Requires deposits into the fund from corporate tax collections, up to a maximum of $125M
each fiscal year.
Effective July 1, 2025.
(Adds R.S. 51:2771)
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