HLS 23RS-323 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 426
BY REPRESENTATIVE BRYANT
TAX CREDITS: Provides relative to the work opportunity tax credit for businesses that hire
certain formerly incarcerated persons
1 AN ACT
2To amend and reenact R.S. 47:287.750(A), (B)(introductory paragraph), (1), (2),
3 (3)(introductory paragraph), (4), and (5), (D)(1), and (F), relative to corporate
4 income and franchise tax; to provide relative to the Louisiana work opportunity tax
5 credit; to provide additional eligibility criteria for the credit; to expand the
6 definitions of "eligible re-entrant" and "eligible business" for purposes of the credit;
7 to provide a certification process for verifying the status of certain persons as eligible
8 re-entrants; to provide for the means by which the credit may be earned; and to
9 provide for related matters.
10Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 47:287.750(A), (B)(introductory paragraph), (1), (2),
12(3)(introductory paragraph), (4), and (5), (D)(1), and (F) are hereby amended and reenacted
13to read as follows:
14 ยง287.750. Louisiana work opportunity tax credit
15 A. There is hereby authorized The legislature hereby authorizes a
16 nonrefundable credit for businesses that hire certain formerly incarcerated persons
17 and certain current and former inmates who participate participants in the in
18 designated work release programs provided for in R.S. 15:711, 1111, 1199.9, and
19 1199.10.
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HB NO. 426
1 B. For the purposes of this Section, the following terms shall have the
2 following meanings meanings ascribed to them in this Subsection:
3 (1) "Department" shall mean means the Department of Revenue.
4 (2) "Eligible business" shall mean a means all of the following:
5 (a) Any business that is subject to Louisiana income tax and participates in
6 any of the work release programs provided for in R.S. 15:711, 1111, 1199.9, or
7 1199.10.
8 (b) Any business that is subject to Louisiana income tax and hires an eligible
9 re-entrant.
10 (3) "Eligible job" shall mean means any of the following:
11 * * *
12 (4) "Eligible re-entrant" shall mean an means all of the following:
13 (a) Any inmate or former inmate who is eligible to participate and is actively
14 participating in a work release program provided for in R.S. 15:711, 1111, 1199.9,
15 or 1199.10. An To qualify as an eligible re-entrant pursuant to this Subparagraph,
16 a person shall meet all of the criteria provided for in R.S. 15:1199.7.
17 (b) Any formerly incarcerated person who is hired not more than twenty-four
18 months after his release from imprisonment.
19 (5) "Secretary" shall mean means the secretary of the Department of
20 Revenue.
21 * * *
22 D.(1) The credit shall be earned upon the occurrence of either of the
23 following:
24 (a) Certification certification by the Department of Public Safety and
25 Corrections or the applicable sheriff to the department that the eligible business
26 employed an eligible re-entrant in an eligible job for twelve consecutive months
27 following the release of the eligible re-entrant from imprisonment.
28 (b) Acceptance by the department of certification from an eligible business
29 attesting that the business employed an eligible re-entrant in an eligible job for
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HB NO. 426
1 twelve consecutive months following the release of the eligible re-entrant from
2 imprisonment. Such certification shall include documentation from the Department
3 of Public Safety and Corrections or the applicable sheriff verifying the date of
4 release of the eligible re-entrant from imprisonment. Such certification may be on
5 a form prescribed by the department and promulgated by the secretary in rule.
6 * * *
7 F. Credits previously granted to an eligible business but later disallowed may
8 be recovered by the secretary pursuant to the provisions provided for in accordance
9 with the provisions of R.S. 47:1561.3.
10 * * *
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 426 Original 2023 Regular Session Bryant
Abstract: Expands eligibility for the work opportunity tax credit to businesses that hire any
formerly incarcerated person within a certain period after the person's release from
imprisonment.
Present law authorizes a nonrefundable corporate income tax credit for eligible businesses
that hire eligible re-entrants for eligible jobs. Provides that the amount of the credit shall
equal 5% of the total wages paid to an eligible re-entrant in an eligible job for 12 consecutive
months following the re-entrant's release from imprisonment, with a maximum credit
amount of $2,500 per eligible re-entrant. Proposed law retains present law.
Present law establishes the following definitions for purposes of present law:
(1)"Eligible business" means a business that is subject to La. income tax and
participates in any of the work release programs provided for in present law (R.S.
15:711, 1111, 1199.9, or 1199.10).
(2)"Eligible re-entrant" means an inmate or former inmate who is eligible to participate
and is actively participating in a work release program provided for in present law.
(3)"Eligible job" means the following:
(a)A new job.
(b)An existing job that has been vacant for at least one year.
(c)An existing job that is vacant because the person who previously filled the
job left voluntarily or was terminated for cause.
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HB NO. 426
Proposed law expands the definition of "eligible re-entrant" to include any formerly
incarcerated person who is hired not more than 24 months after his release from
imprisonment. Provides a certification process for verifying the status of such persons as
eligible re-entrants.
Proposed law expands the definition of "eligible business" to include any business that hires
an eligible re-entrant.
Proposed law otherwise retains present law.
(Amends R.S. 47:287.750(A), (B)(intro. para.), (1), (2), (3)(intro. para.), (4), and (5), (D)(1),
and (F))
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