DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 676 Original 2021 Regular Session Carpenter
Abstract: Establishes the Apprenticeship Tax Credit Program and provides for administration of
and eligibility for the program
Proposed law establishes a tax credit for employers who employ "eligible apprentices". Defines
"eligible apprentice" as a person who meets at least one of the following criteria:
(1)Has entered into a written apprenticeship agreement with an employer pursuant to a
registered apprenticeship program as provided in present law (R.S. 23:381 et seq.).
(2)Is enrolled in a training program that is accredited by the National Center for Construction
Education and Research and that has no less than four levels of training and no less than 500
hours of instruction.
(3)Is enrolled in a State Board of Elementary and Secondary Education (BESE) approved Fast
Forward High-Demand Apprenticeship Pathway Program.
(4)Is enrolled in a postsecondary apprenticeship program administered through the La.
Community and Technical College System (LCTCS) as provided in proposed law.
Tax Credit
Proposed law provides that the credit applies for taxable years beginning after Dec. 31, 2021, and
that any credit provided pursuant to proposed law shall be non-refundable. Requires the credit to
be taken against La. income tax or corporate franchise tax.
Proposed law provides that credit is earned for each eligible apprentice who works a minimum of
250 hours during the taxable period and is calculated at $1.25 per hour that the eligible apprentice
works. Caps the maximum allowable credit per eligible apprentice at $1,250 per year. Further
provides that no credit may be awarded for an eligible apprentice enrolled in a training program
accredited by the National Center for Construction Education and Research, unless the student has
successfully completed at least two levels of training and 250 hours of instruction.
Proposed law caps the maximum amount of tax credits that may be granted in a given year at $12.5
million. Requires the Dept. of Revenue to promulgate rules providing for allocation of available tax
credits. Further provides that if all credits are not granted in any calendar year, the unused portion
will carry forward to subsequent calendar years and may be awarded without regard to the $12.5 million cap otherwise provided in proposed law.
Requires the Dept. of Revenue by rule—in consultation with the La. Workforce Commission, BESE,
LCTCS, and the Board of Regents—to establish procedures for determining an employer's eligibility
for a credit pursuant to proposed law. Further requires the La. Workforce Commission, BESE, and
LCTCS to annually provide to the Dept. of Revenue a list of businesses that participate in the
apprenticeship programs administered by each respective agency.
Proposed law provides that if the tax credit earned for the taxable period exceeds the amount of taxes
due, then the taxpayer may carry forward as a credit the unused portion for up to five years.
Requires all entities taxed as corporations to claim the credit authorized pursuant to proposed law
on their corporation income and franchise tax return. Individuals, estates, and trusts are required to
claim the credit on their income tax returns. Further outlines requirements for claiming the credit
by business entities that are not taxed as corporations.
Provides that if a credit is later disallowed, the Dept. of Revenue may initiate a collection action
against the taxpayer. Requires any such action to be initiated within three years from the end of the
calendar year in which the credit was earned. Limits the interest rate that may be assessed on such
collections to a rate equal to the rate of judicial interest provided in present law plus three percent.
Authorizes the Dept. of Revenue to promulgate rules in accordance with the Administrative
Procedure Act to execute proposed law.
Proposed law sunsets after June 30, 2028.
LCTCS Apprenticeship Program
Proposed law requires the Board of Regents to establish an advisory council (council) to identify
apprenticeship programs for high-demand industries and fields. Requires LCTCS to administer the
council.
Provides that the council shall be composed of the following members or their designees:
(1)The president of LCTCS.
(2)The commissioner of higher education.
(3)The state superintendent of education.
(4)The secretary of the La. Dept. of Economic Development.
(5)The secretary of the La. Workforce Commission.
(6)The chairman of the La. Workforce Investment Council. (7)The secretary of the La. Dept. of Revenue.
Requires the council to review the workforce priorities of the state and each of its workforce regions
and designate postsecondary apprenticeship programs to be administered by LCTCS. Requires the
first review by Sept. 30, 2021, and at least once every three years thereafter.
Proposed law establishes requirements for the council to meet in selecting a postsecondary
apprenticeship program. The process includes:
(1)Identification of a maximum of five industry sectors that are predominantly composed of
high-demand, high-wage jobs that are aligned to workforce priorities of the state and each
of its workforce regions and to identify high-demand, high-wage jobs in each of those
sectors.
(2)Review the postsecondary education requirements of each job identified.
(3)Review the public postsecondary education programs at the associate degree level or below
that offer credentials and degrees that are aligned to the identified jobs in each industry
sector.
Further provides requirements for the identification of industry sectors; high-demand, high-wage
jobs; and the designation of postsecondary apprenticeship programs:
(1)Review of the most current statewide and regional industry and occupational forecasts as
approved by the Occupational Forecasting Conference and the La. Workforce Investment
Council.
(2)Review of nationally recognized databases for industry and occupational projections.
(3)Input from the regional economic development organization in each region.
Provides that proposed law shall apply to the employment of eligible apprentices, as defined in
proposed law, on and after Jan. 1, 2022.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:6033)