We are excited to let you know the Louisiana Legislature passed a new business incentive program in the 2025 fiscal session, called the “Louisiana High Impact Jobs Program” or “HIP” for short. Immediately following the bill’s passage, the Louisiana Department of Economic Development (LED) issued emergency rules for businesses to be able to determine their potential eligibility and apply.
Additionally, in the August edition of the Louisiana Register, a proposed set of rules was introduced. The new proposed rule set includes some clarifying language, but there are minimal changes made from the emergency rule set. LED is accepting written comments on the new proposed rules through September 30, 2025. A public hearing will also be held on October 1, 2025, at 10:00am in the LaBelle Room, of the LaSalle Building.
You can view the full Louisiana Register and corresponding Economic Impact Statements here: Louisiana Register – Office of the State Register for your reference.
The following information is available on LED’s website regarding this new program:
Louisiana’s High Impact Jobs Program (HIP) offers qualifying companies up to five years of reimbursable grants for the creation of new jobs that pay above the parish (county) average wage, based on the parish where the project is located. Companies can benefit from grants administered directly from Louisiana Economic Development, with higher wages yielding higher grants. HIP is designed to benefit businesses of all sizes—qualifying companies creating at least one new job can apply. Sole proprietorships are ineligible.
Grants are awarded as a percentage of wages paid, with an initial contract term of three years and the option to renew for an additional two years:
18% grant for new jobs paying at least 125% of the parish average wage
22% grant for new jobs paying at least 150% of the parish average wage
Jobs created in distressed areas are eligible at a lower wage threshold:
8% grant for new jobs paying at least 110% of the parish average wage or the regional average wage, whichever is lower
Distressed areas are defined as:
▶ 25% of parishes with lowest average annual wage (per Bureau of Labor Statistics) OR
▶ Areas identified as “deeply distressed” by the federal New Markets Tax Credit Program
Eligibility is largely defined by wages paid above the parish average, except in industries that are ineligible.
Companies primarily engaged in the following sectors are statutorily ineligible from participating in this program:
Gaming
Automotive rental and leasing
Retail sales
Local solid waste disposal
Professional sports teams
Local sewage systems
State/political subdivision enterprises
Local water systems
Qualifying jobs must not have existed in the state for an employer prior to the effective date of the contract.
Jobs must also meet the following requirements:
▶ Full-time, at-will employees (does not include seasonal or temporary positions)
▶ Employed by the company or a named subsidiary
▶ Filled onsite or remotely by Louisiana residents
▶ Include a basic health benefits plan
LED expects to be able to issue grants by July 1, 2026, after funding is approved. If you have an interest in applying or are wondering if your business qualifies, please don’t hesitate to reach out to one of our Credits & Incentives staff members.