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)]
CONFERENCE COMMITTEE REP ORT DIGEST
HB 678 2021 Regular Session Duplessis
Keyword and oneliner of the instrument as it left the House
TAX CREDITS: Provides for the Louisiana work opportunity tax credit
Report adopts Senate amendments to:
1. Make technical changes.
Report rejects Senate amendments which would have:
1. Repealed present law reduction of the federal earned income tax credit that would take effect
on Jan. 1, 2026.
2. Made changes to the title.
Report amends the bill to:
1. Extend the current 5% federal earned income tax credit from December 31, 2025, to
December 31, 2030.
Digest of the bill as proposed by the Conference Committee
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 provides the La. work opportunity tax credit shall be applicable to eligible re-entrants
with a release date on or after Jan. 1, 2021.
Present law (R.S. 47:297.8) provides for an earned income tax credit against individual income tax
in an amount equal to 5% of the federal earned income tax credit for tax years beginning on and after
Jan. 1, 2019.
Proposed law retains present law . Present law provides that beginning Jan. 1, 2026, the amount of the earned income tax credit is 3.5%
of the federal earned income tax credit.
Proposed law changes the present law date from Jan. 1, 2026 to Jan. 1, 2031.
Effective upon signature by the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:297.8(A); Adds R.S. 47:287.750)