Louisiana's High-Impact Jobs Program (HIP) is a state incentive that pays employers reimbursable cash grants worth 8% to 22% of the annual wages of new jobs paying above the parish average wage. Administered directly by Louisiana Economic Development (LED), it replaced the Quality Jobs Program, which closed to new applicants on June 30, 2025. For the fiscal year that began July 1, 2026 (FY2027), the Legislature funded HIP at $125 million, its first appropriation, and LED is accepting applications.
Key Takeaways
| 01 | Louisiana now pays cash grants of up to 22% of new-job payroll, on up to $200,000 of wages per job. The program was created by House Bill 507 of the 2025 Regular Session, authored by Rep. Julie Emerson (R-Carencro), signed by Gov. Jeff Landry (R) on June 20, 2025 as Act 372, and effective July 1, 2025. |
| 02 | The Legislature funded the program at $125 million for FY2027. Gov. Landry requested $75 million, and lawmakers added another $50 million during the 2026 Regular Session. The program received no appropriation in its first year, so this is its first funded cycle. |
| 03 | Quality Jobs is closed to new projects. LED accepted no new Quality Jobs advance notifications after June 30, 2025. Existing contracts remain payable for their full terms, and holders may switch to HIP, but no company can hold active contracts under both programs for the same period. |
| 04 | HIP is richer but shorter than Quality Jobs. It pays 18% to 22% of wages versus Quality Jobs' 4% to 6%, but for a maximum of five years instead of 10, and with no companion sales-tax or facility-expense rebate on capital investment. |
| 05 | The first grant claims can be filed starting July 1, 2026. A company can file its first claim on July 1, 2026 or after paying 12 months of qualifying payroll, whichever is later, so a company whose contract began in July 2025 could file its first claim in July 2026. |
HIP pays a percentage of each qualifying new job's annual wages back to the employer as a reimbursable grant, and the higher the wage, the higher the percentage. Unlike a tax credit, the benefit is a direct cash payment from LED. Unlike the old Quality Jobs rebate, wage thresholds float with each parish's average wage rather than a fixed statewide hourly rate. The statute, codified at La. R.S. 51:2771, sets three tiers, shown in Exhibit 1.
Exhibit 1
High-Impact Jobs Program grant tiers, percent of annual wages per qualifying job
| Wage level | Where it applies | Grant (% of annual wages) |
|---|---|---|
| At least 110% of the parish or regional average wage, whichever is lower | Distressed areas only | 8% |
| At least 125% of the parish average wage | Statewide | 18% |
| At least 150% of the parish average wage | Statewide | 22% |
Sources: Act 372 of 2025; LED High-Impact Jobs Program page.
Three other features shape what a grant is worth.
"Quality Jobs was really more about the number of jobs, where this [High Impact] program is far more about the wages for the jobs."
Susan Bourgeois, Secretary, Louisiana Economic Development
Source: Louisiana Illuminator, May 11, 2025.
Eligibility depends on wages, and a company creating a single qualifying job can apply. Qualifying jobs must be new to Louisiana (jobs absorbed when one Louisiana company buys another do not count, though positions relocated from out of state can), full-time and at-will (no seasonal or temporary positions), directly employed by the company or a named subsidiary, filled onsite or remotely by Louisiana residents, and covered by a basic health benefits plan.
Distressed areas qualify for the 8% grant at a lower threshold of 110% of the average wage. Under LED's rules, distressed areas are the 25% of parishes with the lowest average wages per the Bureau of Labor Statistics, areas designated "deeply distressed" under the federal New Markets Tax Credit criteria, and other areas the LED secretary approves. LED Secretary Susan Bourgeois has said a distressed designation is planned for the Hyundai steel mill site in Donaldsonville, where typical weekly pay of $836 trails the $1,449 Ascension Parish rate, according to federal data cited by the Louisiana Illuminator. LED publishes a parish-by-parish wage map to check any project location.
Several sectors are excluded. Act 372 names gaming, retail sales, professional sports teams, state and political-subdivision enterprises, automotive rental and leasing, local solid waste disposal, and local sewage and water systems as ineligible. LED's program rules add legal and accounting services, telemarketing and other call centers, and solar farms. Professional services face additional limits under those rules, and sole proprietorships cannot apply.
The tier a job lands in changes the grant materially. Consider a hypothetical: Pelican Precision Components plans a plant in a parish with a $56,000 average annual wage, creating 80 new full-time jobs at an average salary of $90,000. Because $90,000 exceeds 150% of the parish average ($84,000), every job lands in the 22% tier. The grant comes to $1,584,000 a year (80 jobs x $90,000 x 22%), or $4,752,000 over the initial three-year term.
A lower wage structure drops a full tier. Had the same company paid $75,000 average salaries, above the 125% threshold ($70,000) but below 150%, the grant would be 18%, or $1,080,000 per year. Under the closed Quality Jobs Program, the same $7.2 million payroll would have earned at most 6%, or $432,000 per year, $4.32 million over its full 10-year term. HIP delivers nearly twice the total value in half the time, though Quality Jobs' companion sales-tax rebate on capital expenditures could narrow that gap for capital-intensive projects. Exhibit 2 sets out the three scenarios.
Exhibit 2
Worked example, 80 jobs in a parish with a $56,000 average wage
| Scenario | Rate | Annual benefit | Full-term benefit |
|---|---|---|---|
| HIP at $90,000 average salary (150%+ tier) | 22% | $1,584,000 | $7,920,000 over 5 years |
| HIP at $75,000 average salary (125% tier) | 18% | $1,080,000 | $5,400,000 over 5 years |
| Quality Jobs at $90,000 average salary (closed) | 6% | $432,000 | $4,320,000 over 10 years |
Sources: Crawford Partners analysis of Act 372 of 2025 and LED program terms. Hypothetical figures.
LED administers HIP directly, and the LED secretary approves applications and contracts without a Board of Commerce and Industry review. A company emails its application to HIPapplications@la.gov, and LED then sends payment instructions for the application fee and a deposit for the expenditure verification report (EVR). LED reviews the application once both payments arrive and, if it approves, issues a contract. The contract can start no earlier than the date LED receives the application and fees, and no later than 180 days after the application date, and only jobs that did not exist before the contract's effective date count as new. When the company is ready to claim, an independent Louisiana certified public accountant (CPA) assigned by LED performs the EVR on its payroll, and LED reviews the completed EVR before issuing the grant.
Quality Jobs is closed, but its existing contracts could keep paying out for a decade or more. As part of the November 2024 tax-reform special session that cut the corporate income tax to a flat 5.5% and repealed the corporate franchise tax effective January 1, 2026, lawmakers ended eight business incentive programs, removing $180 million to $225 million in annual state obligations. Quality Jobs stopped accepting new advances on June 30, 2025. A 2020 Legislative Auditor review had found the program was a net fiscal loss for the state. Because rebates only begin once hiring starts, Bourgeois confirmed in May 2025 that the state could still be paying Quality Jobs rebates in 2040 on projects like Meta's northeast Louisiana data center. Exhibit 3 compares the two programs.
Exhibit 3
Quality Jobs and High-Impact Jobs compared, program terms
| Feature | Quality Jobs (closed) | High-Impact Jobs (active) |
|---|---|---|
| Status | No new applicants after June 30, 2025 | Accepting applications; $125M funded for FY2027 |
| Benefit rate | 4% ($18.00/hr jobs) or 6% ($21.66/hr jobs) payroll rebate | 8% / 18% / 22% payroll grant |
| Wage benchmark | Fixed hourly rates | 110% to 150% of parish average wage |
| Capital investment benefit | Sales/use tax rebate or 1.5% facility expense rebate | None |
| Term | Up to 10 years (5 + 5) | Up to 5 years (3 + 2) |
| Minimum job creation | 5 jobs / $225,000 payroll (or 15 / $675,000 for larger employers) | 1 qualifying job |
Sources: LED Quality Jobs and High-Impact Jobs program pages; Act 372 of 2025.
Existing Quality Jobs contracts remain in force. Under LED's guidance, a company cannot hold active contracts under both programs covering the same time periods. Bourgeois told the Louisiana Illuminator that a company with an existing Quality Jobs contract can "live out that contract" or "choose to look at it and see if they would rather do it differently."
Senate Bill 383 (Act 18 of 2026) modernizes the Incumbent Worker Training Program (IWTP). Authored by Sen. Adam Bass (R-Bossier City), the bill passed unanimously in both chambers (34-0 in the Senate, 96-0 in the House) and was signed April 30, 2026, effective August 1, 2026. Once it takes effect, new businesses can access training grants after two years of Louisiana operations instead of three, and funds can cover non-credit college courses, internships and apprenticeships, pre-employment training, and sector-based and regional workforce initiatives. The act also ties funding to the Unemployment Trust Fund balance. When the applied balance reaches $1.25 billion, the annual amount available for IWTP can rise to $35 million, up from the current $20 million. Leaders for a Better Louisiana expects the higher level in 2027.
The 2026 session also added $50 million to the Site Investment and Infrastructure Fund behind Louisiana FastSites. Combined with $150 million invested the prior year, that brings the two-year total for site development to $200 million, per Leaders for a Better Louisiana. A manufacturer can combine a HIP grant on payroll, IWTP dollars on training, and a certified site with infrastructure already funded. Exhibit 4 lays out the dates.
Exhibit 4
Program milestones, November 2024 to spring 2027
| Date | Milestone |
|---|---|
| Nov. 2024 | Tax-reform special session ends eight incentive programs, including Quality Jobs |
| June 20, 2025 | Gov. Landry signs HB 507 as Act 372, creating HIP |
| June 30, 2025 | Quality Jobs closes to new advance notifications |
| July 1, 2025 | HIP effective; LED begins accepting applications |
| Apr. 30, 2026 | SB 383 (Act 18) signed, modernizing the Incumbent Worker Training Program |
| July 1, 2026 | FY2027 begins with $125M HIP appropriation; earliest date for first grant claims |
| Aug. 1, 2026 | Act 18 IWTP changes take effect |
| 2027 (projected) | IWTP funding cap rises to $35M if the Unemployment Trust Fund applied balance reaches $1.25B |
| Spring 2027 | 2027 Regular Session takes up the FY2028 budget, including HIP funding |
Sources: Louisiana Legislature, HB 507 and SB 383 bill histories; LED High-Impact Jobs Program page; Leaders for a Better Louisiana.
If your company is weighing a Louisiana location or expansion with jobs that pay well above the parish average wage, the High-Impact Jobs Program is worth a look. A contract cannot start before LED receives the application and fees. If you want a read on fit before you set hiring dates, reach out to our team.
© Copyright 2026 TC Policy Group, LLC (d/b/a Crawford Partners). The views expressed herein are those of the author(s) and not necessarily the views of Crawford Partners, its management, its subsidiaries, its affiliates, or its other professionals. Crawford Partners is not a law firm and cannot provide legal advice.