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.
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))