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 678 Engrossed 2021 Regular Session Duplessis
Abstract: Establishes the Louisiana work opportunity income tax credit for certain business that
hire re-entrants participating in work release programs.
Proposed law authorizes an income tax credit for eligible businesses that hire participants in work
release programs provided for in present law (R.S. 15:711, 1111, 1199.9, and 1199.10).
Proposed law defines "eligible business" as any business that is subject to La. income tax and
participates in any of the work release programs provided for in present law.
Proposed law defines "eligible re-entrant" as an inmate eligible for participation in a work release
program provided for in present law.
Proposed law defines "eligible job" as:
(1) A new job.
(2) An existing job that has been vacant for at least one year.
(3) An existing job that is vacant because the person who previously filled the job left
voluntarily or was terminated for cause.
Proposed law defines "secretary" as the secretary of the Dept. of Revenue.
Proposed law provides the credit is earned upon certification that the re-entrant has been employed
by the eligible business in an eligible job for 12 consecutive months. Further provides that the credit
may be earned only once for each eligible re-entrant.
Proposed law provides that the amount of the credit shall equal 5% of the total wages paid to the
eligible re-entrant for employment in an eligible job during the specified time period. Further
provides the total amount of tax credits granted to an eligible business shall not exceed $2,500 per
eligible re-entrant.
Proposed law provides the credit shall be earned upon certification by the Dept. of Public Safety or
the applicable sheriff to the Dept. of Revenue that the eligible business employed an eligible re-
entrant in an eligible job for 12 consecutive months following the re-entrant's release from
imprisonment. Proposed law provides that the credit shall be allowed against any La. income or franchise tax due
by the business for the taxable period in which the credit is earned.
Proposed law authorizes businesses to carry forward any unused credit for a period not to exceed five
years.
Proposed law authorizes the secretary to recover the credit under certain circumstances.
Proposed law permits the Dept. of Revenue to promulgate rules to establish procedures related to
program eligibility.
Proposed law provides no credit shall be granted after June 30, 2027.
Proposed law is applicable to tax years beginning on or after Jan. 1, 2021.
Effective upon signature by the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:287.750)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Add a definition for the term "secretary".
2. Change the amount of the credit from 50% of the eligible re-entrant wages to 5% of the
eligible re-entrant wages.
3. Change the maximum amount of the credit from a total of $20,000 per eligible business
in a calendar year, to a total of $2,500 per business per eligible re-entrant.
4. Add provisions requiring the Dept. of Public Safety or the sheriff, whichever is
applicable, to certify to the Dept. of Revenue that the eligible business employed an
eligible re-entrant in an eligible job for at least 12 consecutive months following their
release from imprisonment.
5. Add provisions that permit the secretary of the Dept. of Revenue to recover a credit if the
credit later becomes disallowed.
6. Add provisions prohibiting a taxpayer from receiving any other tax incentive for the job
creation or hiring of an eligible re-entrant for which the taxpayer has received a tax credit
pursuant to proposed law.
7. Authorize the Dept. of Revenue to promulgate rules in accordance with the Administrative Procedure Act to establish procedures related to program eligibility.
8. Add provisions prohibiting the granting of credits after June 30, 2027.
9. Change the effectiveness of proposed law from Jan. 1, 2022, to effectiveness upon
signature by the governor or lapse of time for gubernatorial action.
10.Make technical changes.