Louisiana House Bill HB680

Louisiana 2021 Regular Session

• Introduced: 4/21/21
• Refer: 4/22/21
• Report Pass: 5/11/21
• Engrossed: 5/25/21
• Refer: 5/26/21
• Report Pass: 6/2/21
• Enrolled: 6/10/21
• Chaptered: 6/23/21
• Passed: 6/23/21

Caption

Establishes the Louisiana Youth Jobs Tax Credit Program and tax credits for the employment of eligible apprentices (EN -$1,200,000 GF RV See Note)

Impact

HB 680's implementation aims to address the employment gap for disadvantaged youth in Louisiana, reflecting a recognition of underlying socioeconomic challenges. By providing tax incentives to employers, the bill encourages job creation in sectors that typically struggle with youth employment. It is designed to bolster the local economy by increasing the availability of skilled labor, thereby enhancing workforce readiness and providing a pathway for young individuals towards stable employment. One important stipulation is that the total amount of tax credits available each year is limited to $2.5 million, creating a regulatory framework that necessitates employers to act swiftly in order to benefit from the credits.

Summary

House Bill 680 establishes the Louisiana Youth Jobs Tax Credit Program aimed at promoting the employment of disadvantaged youth and apprentices in the state. Under this program, eligible employers can receive non-refundable tax credits for hiring qualifying apprentices and youth. Specifically, employers hiring eligible apprentices for a minimum of 250 hours can earn a tax credit of $1.25 per hour, capped at $1,250 per apprentice. Similarly, businesses that employ eligible youth can receive a tax credit of $1,250 for full-time positions and $750 for part-time positions, contingent on the youth remaining employed for at least three consecutive months. The goal of the bill is to facilitate the acquisition of critical workforce skills among young people.

Sentiment

The reception to HB 680 has largely been positive, particularly among lawmakers and business advocates who support the idea of incentivizing companies to hire young workers and apprentices. Supporters argue that this initiative will not only reduce youth unemployment rates but also promote the development of skilled labor essential for the state's economic growth. However, concerns have been expressed regarding the sustainability of the proposed tax benefits and the potential for employers to exploit the system. These tensions highlight an ongoing debate about the balance between supporting businesses and ensuring fair employment practices for vulnerable demographics.

Contention

A central point of contention surrounding HB 680 is its long-term viability and the potential for unintended consequences such as businesses laying off existing employees to hire eligible youth for tax benefits. Additionally, the bill places a critical focus on regulatory measures to ensure that credits are granted responsibly and equitably. This includes requiring participation in accredited training programs as a condition of eligibility for apprentices, thereby ensuring that the incentive promotes not just any job creation, but meaningful employment that contributes to skill development in the workforce.