The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Curry Lann.
DIGEST
SB 243 Original 2021 Regular Session Carter
Proposed law defines the following terms:
(1) "BESE" means the Louisiana Board of Elementary and Secondary Education.
(2) "Department" means the Department of Revenue.
(3) "Eligible apprentice" means a person who either:
(a) Has entered into a written apprentice agreement with an employer or an association
of employers pursuant to a registered apprenticeship program as provided for in
Chapter 4 of Title 23 of the Louisiana Revised Statutes of 1950 (R.S. 23:381 et seq.).
(b) Is enrolled in a training program accredited by the National Center for Construction
Education and Research which has no less than four levels of training and no less
than five hundred hours of instruction.
(c) Is enrolled in a BESE approved Fast Forward High-Demand Apprenticeship Pathway
Program.
(d) Is enrolled in a postsecondary apprenticeship program administered through LCTCS
for high-demand industries and fields as provided for in Subsection D of this Section.
(4) "LCTCS" means the Louisiana Community and Technical College System.
(5) "Regents" means the Board of Regents.
Proposed law grants employers a nonrefundable "apprenticeship tax credit" against any income tax
or franchise tax each tax year equal to $1.25 for each hour of employment of each "eligible
apprentice", not to exceed 1,250 hours for each eligible apprentice.
Proposed law provides for an annual calendar year program cap of $12.5 million and any unused cap
may roll over to subsequent years.
Proposed law limits the utilization of the credits to the tax liability of the taxpayer and any unused
credits may be carried forward for a period not to exceed five years.
Proposed law requires the department, in consultation with the Louisiana Workforce Commission,
BESE, LCTCS, and Regents to promulgate rules to establish procedures to determine employers' eligibility for the credit.
Proposed law requires the Louisiana Workforce Commission, BESE, and LCTCS to provide an
annual list of businesses that participate in the apprenticeship programs.
Proposed law requires the Board of Regents to establish an advisory council to identify
apprenticeship programs for high-demand industries and fields to be administered through the
LCTCS known as "postsecondary apprenticeship programs".
Proposed law requires the advisory council to be comprised of the following members or their
designees:
(1) The president of the Louisiana Community and Technical College System.
(2) The commissioner of higher education.
(3) The state superintendent of education.
(4) The secretary of the Louisiana Dept. of Economic Development.
(5) The executive director of the La. Workforce Commission.
(6) The chairman of the La. Workforce Investment Council.
(7) The secretary of the Dept. of Revenue.
Proposed law requires the advisory council to review the workforce priorities of the state and each
of its workforce regions and designate postsecondary apprenticeship programs to be administered
by the LCTCS by Sept. 30, 2021, and at least once every three years thereafter.
Proposed law requires the selection process for postsecondary apprenticeship programs by the
advisory council to include:
(1) The identification of not more than five industry sectors that are predominated by
high-demand, high-wage jobs that are aligned to workforce priorities of the state and each
of its workforce regions and identify high-demand, high-wage jobs in each of the sectors.
(2) A review of the postsecondary education requirements of each job identified.
(3) A review of 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.
(4) Identification of industry sectors, high-demand, high-wage jobs, and the designation of
postsecondary apprenticeship programs shall, at a minimum, be based upon all of the following:
(a) A 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.
(b) A review of nationally recognized databases for industry and occupational
projections.
(c) Input from the regional economic development organization in each region.
Proposed law provides that the credit shall be allowed against the income or franchise tax due from
a taxpayer for the taxable period in which the credit is earned.
Proposed law authorizes the secretary to recapture any credits that were granted but were later
disallowed.
Proposed law applies to the employment of eligible apprentices on and after January 1, 2022.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:6033)