Quality Jobs
Gardner Denver, Monroe
LED Incentives_Quality Jobs_Gardener-1920x540
Starting in July 2018, all forms and documents related to this program (with the exception of Additional Period Sales and Use Tax Advance Notification and Application) must be submitted online via the next generation of FastLane. Therefore, we will no longer be accepting paper forms after June 25th. Any documents received after that date will be mailed back to the sender. 


Louisiana Quality Jobs Rebate

The Quality Jobs, or QJ, program provides a cash rebate to companies that create well-paid jobs and promote economic development.
  • The program provides up to a 6% cash rebate of annual gross payroll for new direct jobs for up to 10 years.
  • Provides a state sales/use tax rebate on capital expenditures or a 1.5% project facility expense rebate on the total capital investment, excluding tax exempted items.

Eligibility

  • 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

The following employers or persons shall not be eligible to participate in the program:

  • 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.

Job and Payroll Requirements for Eligibility

If an employer employs:

  • 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

Program Statutes & Rules:

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


Getting Started

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.

Submit advance, application, required program documents, and fees online using FastLane. If the contact designee is a representative other than a company official, a Disclosure Authorization is required and must be submitted in FastLane.
*Advances are valid for 24 months.

View fees associated with this incentive.

*Fees are nonrefundable. 


Next Steps

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

  1. Begin Project. Includes construction, purchase of equipment, building and materials, hiring, and other eligible capital investment transactions.
  2. Sales & Use Tax Certificate Registration (if applicable). Contact the Louisiana Department of Revenue (LDR) to apply for a sales and use tax registration certificate and taxpayer account number.
  3. Unemployment Insurance Identification Number. Contact the Louisiana Workforce Commission to apply for an unemployment identification number.
  4. Program Application and Fee. 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.
  5. Application Review. 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.
  6. Board Review. 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.)
  7. Contract. 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.
  8. Annual Certification Report (ACR). 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).
  9. Renewal. 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
  10. Name Change/Contract Transfer. 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.
  11. Sales and Use Tax Rebate or Project Facility Expense Rebate (PFER). 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.
  12. Project Completion Report (PCR) and Fee. 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.
  13. Affidavit of Final (AFC) Cost and Fee. File online with LED within six months of project completion.
  14. Employee Certification Reports (ECRs) and Fee. Project periods of 24 months or less may be filed concurrently. ECRs are due no later than six months after project completion, or after Governor has signed the contract, whichever comes later. An additional ECR must be filed for project periods greater than 24 months (if seeking an additional project period).
    Note: Appropriate form(s) specific to a contract must be used (forms may be downloaded from the document checklist in Fastlane, completed and uploaded in the ECR).

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.

If you must meet the hiring requirements of the Enterprise Zone Program please reference the below:

  1. After submitting the advance notification and fee, apply for local benefits by contacting the local governing authority to request an endorsement resolution.
  2. File for a Sales/Use Tax Certificate Registration if applicable. Contact the Louisiana Department of Revenue to apply for sales and use tax registration certificate and taxpayer account number.
  3. Submit Project Completion Report (PCR) and fee within six months after the project is completed. The business must elect either the sales and use tax rebate or the investment tax credit / project facility expense rebate 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.
  4. Submit the Affidavit of Final Cost and fee within six months of the completion of the project.
  5. File for sales and use tax rebate or refundable investment tax credit with Louisiana Department of Revenue.
  6. File Employee Certification Reports (ECR) and fee. ECRs for project periods of 24 months or less may be filed concurrently. ECRs are due no later than six months after the project has been completed or after the Governor has signed the contract, whichever comes later. For project periods greater than 24 months, an additional ECR for the remaining months must be filed if seeking an additional project period.

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. File Employee Certification Reports. These reports are due in conjunction with the Application for this additional project period.
  4. Submit the Project Completion Report and fee within six months after the project is completed.
  5. Submit the Affidavit of Final Cost (AFC) and fee within six months of the completion of the project.
  6. 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.

Eligibility Scenarios

Q: If I am an existing business in Louisiana with multiple facilities located throughout the state and I reduce the workforce at one site and increase the workforce at another site with a Quality Jobs (QJ) contract, would those jobs created at the QJ site be eligible as net new jobs?
A: 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.

Q: If Company ABC purchased Company XYZ and retained XYZ's employees, are the retained jobs considered net new jobs?
A: 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.

Q: Under a QJ contract, businesses are eligible to receive payroll rebates and either the sales and use tax rebate or the investment tax credit/project facility expense rebate. If I do not meet the minimum requirements in any fiscal filing do I lose all the benefits offered under the QJ program?
A: 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.


FAQS

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 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 on LED's website.

* 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: The median statewide number of employees of an employer, including affiliates working at the average hours per week, during the payroll periods including the twelfth day of the month in the last four months completed prior to the contract effective date. (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.) Four months of operation to use the median average are needed, otherwise if three 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.