One Chapter Closes, Another Begins: Spotlight on Louisiana’s New High Impact Jobs Program

First launched in the mid-1990s, Louisiana's Quality Jobs (QJ) Program, widely regarded as a cornerstone of the state’s business incentive offerings, officially came to a close on June 30, 2025. Following the sunset of the QJ Program, Louisiana introduced the High Impact Jobs Program (HIP) through House Bill No. 507. The bill, now designated as Act No. 372, took effect on July 1, 2025. 

The HIP is administered directly by Louisiana Economic Development (LED). Businesses may have the opportunity to earn reimbursement grants by creating new, full-time, high-paying jobs that exceed the average wage in their parish. Notably, even if the average wage threshold for a particular parish is not met, projects located in designated distressed areas of the state or paying employee wages more than the regional average may still qualify, opening the door to meaningful incentives that support high-wage job growth where it’s needed most.

HIP eligibility 

1. Employers 

To be considered, a company must only generate at least one incremental job in the state. However, not all industries are eligible to participate, as several sectors are specifically excluded (e.g., gaming, telemarketing, other call centers, and solar farms). Sole proprietorships do not qualify, and professional service firms may face additional restrictions depending on how their business operates. Despite those exceptions, one of HIP’s most compelling features is its accessibility, making it easier for companies of all sizes, including small and emerging firms, to participate and thrive in Louisiana.

2. Net new jobs

To qualify for HIP grant funding, a newly created position must align with the following program requirements:

• Must be a newly created position after the HIP contract takes effect 
• A full-time position, not short-term or seasonal
• The employee must be on the payroll of the contracted company or a named subsidiary operating in Louisiana
• The job must be performed by a Louisiana resident, either remotely or onsite
• The employee must be benefits-eligible, with the plan taking effect no later than the first day of the month after 90 days of employment

These criteria are designed to promote high-quality jobs that make a meaningful contribution to the state’s workforce and economy.

3. Wage requirements

Grants are calculated based on a position’s annual base salary, excluding bonuses and overtime, and are capped at $200,000 per job, per year.

The grants are structured as follows:

• 18% for jobs paying at least 125% of the parish’s average wage
• 22% for jobs paying 150% or more of the parish's average wage

Projects located in economically challenged areas of the state may qualify under more flexible wage standards: 

• 8% for jobs that pay at least 110% of the lower value between the parish and regional average wage

If you’re exploring eligibility, understanding the wage thresholds in a project’s location is key. Companies can reference the HIP Distressed Census Tracts and Wage Data Map to identify parish and regional wage benchmarks and determine if their project is located in a distressed area. 

HIP application and compliance 

To apply, eligible businesses must submit an application along with two payments: a nonrefundable application fee and a refundable deposit for the required Expenditure Verification Report (EVR). Once submitted, LED will review the application and either approve or deny it. If approved, the business will enter a three-year contract with an option to extend for two additional years, provided all program conditions are met. 

After the HIP contract is executed, the company may notify LED to initiate the reimbursement process. This includes, but is not limited to, the preparation of the EVR and any supporting documentation requested by the LED-assigned CPA. Companies have the option to have the assigned CPA submit the EVR annually or at the end of the initial or renewed contract term, if applicable. Companies may begin filing for grant disbursement starting July 1, 2026, or once 12 months of wages have been paid, whichever is later. If approved, disbursements are issued by LED.

Additionally, from a compliance standpoint, the primary contract holder is required to maintain a statewide baseline number of employees, including those of any applicable subsidiaries, as outlined in the contract. HIP benefits apply to new positions only after the company meets its yearly baseline employment figure. Please note that projects cannot hold contracts under both the HIP and QJ programs that cover the same period. Successful participation in the HIP program depends on taking timely action, providing accurate reporting, and maintaining continued compliance.

Other key updates from Louisiana’s 2025 legislative session

In addition to launching the HIP, Louisiana announced other notable initiatives from the 2025 Legislative Session, including allocating site readiness funding, rolling out “LED 2.0,” creating an Innovation Fund, and launching a Major Events Fund.

Conclusion

The introduction of the HIP, along with several key legislative initiatives, emphasizes Louisiana’s evolving approach to economic development. These strategic moves aim to enhance the state’s business climate and broaden opportunities for investment and employment. If your business would like to pursue this program or would like to learn more about other incentives that exist in Louisiana, please reach out to one of Site Selection Group’s economic experts. For more detailed information on the HIP, you can refer to the official LED HIP website, which provides access to the relevant legislation and program rules – all of which directly inform the content of this blog.