Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development Incentives topic
No spam. Unsubscribe anytime.
Appropriations committee backs new High Impact Jobs program to reward wage growth across parishes
Summary
Lawmakers reported favorably on HB507, a new jobs incentive that ties grants to wages relative to parish averages. LED officials said the program would target higher‑paying jobs and provide graduated grant rates based on how much a company pays above the local wage.
The House Appropriations Committee reported House Bill 507 favorably as amended, creating the High Impact Jobs program within Louisiana Economic Development to incentivize job creation that increases wages relative to local parish averages.
LED officials said the program departs from prior, dollar‑based credits and instead ties benefits to wage gains. Under the program description presented in committee, a company that pays 25% above the parish average for jobs created would be eligible for an 18% grant; a company that pays 50% above the parish average would be eligible for a 22% grant. Distressed areas would have a lower entry threshold (example: 10% of parish wage) and additional flexibility using either parish or a regional average in eligibility calculations.
LED described the statewide average wage at approximately $59,000 and noted that only about 30% of parishes meet that figure; the program is intended to lift wages across the state and make Louisiana more competitive for projects that pay higher wages. The program term presented in committee was three years with a possible two‑year renewal (a five‑year maximum participation window for recipients), shorter than some prior programs.
Committee amendments clarified definitions (basic health benefits plan, regional average wage) and added eligibility criteria and technical language on deposit calculations. The committee adopted those member‑driven amendments and advanced the bill.
Supporters argued the program is simpler administratively and better targeted toward long‑term wage growth than some prior incentives; critics and members asked for care in setting thresholds and ensuring rural parishes can compete for awards.
