Louisiana Senate Bill SB24

Louisiana 2015 Regular Session

• Introduced: 3/6/15
• Refer: 3/6/15
• Refer: 4/13/15

Caption

Extends a non-refundable employer apprenticeship tax credit for three additional years. (gov sig) (OR -$500,000 GF RV See Note)

Impact

By prolonging the apprenticeship tax credit, SB 24 is positioned to bolster the state's economic framework by encouraging more employers to invest in apprenticeship programs. This bill could potentially stimulate job creation and skills development among apprentices—often younger individuals entering the labor market or transitioning careers—thus contributing to a more skilled workforce in Louisiana. However, it is also predicted to have a fiscal impact on the state's budget, with an estimated reduction in general fund revenue due to the continuation of tax credits.

Summary

Senate Bill 24, introduced by Senator Nevers, aims to extend the non-refundable employer apprenticeship tax credit for an additional three years. The bill seeks to maintain existing incentives for employers who hire apprentices, allowing them to receive a tax credit equivalent to one dollar for each hour of each eligible apprentice's employment, capped at 1,000 hours per apprentice per year. This extension is aimed at promoting workforce development while supporting employers in the hiring process during crucial economic periods.

Sentiment

The sentiment towards SB 24 appears to be generally supportive among lawmakers concerned about workforce enhancement; however, there are also voices cautious about the financial implications, particularly regarding the sustainability of such tax incentives without adequate funding measures in place. Advocates argue that these credits are essential in making apprenticeship opportunities attractive to employers, enhancing skill development and economic output. Critics, however, may question the long-term sustainability of such tax expenditures and their effectiveness in genuinely enhancing workforce outcomes.

Contention

Debates surrounding the bill may center on the balance between providing economic incentives for employers and ensuring fiscal responsibility within the state budget. While proponents emphasize the necessity of supporting apprenticeship opportunities, detractors could point to the ongoing need for careful scrutiny of tax credit programs, potentially arguing that unrestricted extensions could lead to budgetary constraints in other essential areas.