HLS 23RS-107 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 637
BY REPRESENTATIVE MINCEY
TAX CREDITS: Establishes a tax credit for businesses that invest in certain school
programs
1 AN ACT
2To enact R.S. 47:6043, relative to income and corporation franchise tax credits; to authorize
3 an income or corporation franchise tax credit for the employment of certain eligible
4 students in internships; to provide for the amount of the credit; to provide for the
5 application of the credit; to authorize the recovery of credits under certain
6 circumstances; to provide for requirements and limitations; to authorize the
7 promulgation of rules; to provide for applicability; to provide for an effective date;
8 and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:6043 is hereby enacted to read as follows:
11 ยง6043. Credits; internships; businesses that invest in certain school programs
12 A.(1) There shall be allowed a non-refundable income or corporation
13 franchise tax credit for a company that employs an eligible student as an intern in a
14 work-based program designed to educate the student in a classroom setting as well
15 as incorporate on-the-job training in high-wage, high-demand industry sectors. The
16 amount of the credit shall equal the amount paid per internship per calendar year up
17 to a maximum amount of two thousand five hundred dollars per intern.
18 (2) For purposes of this Section, an "eligible student" shall be a full-time
19 student attending a public secondary school in Louisiana who is no less than sixteen
20 years of age at the time of the commencement of an internship.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-107 ORIGINAL
HB NO. 637
1 B.(1) The credit shall be allowed against the income or franchise tax due
2 from a taxpayer for the taxable period in which the credit is earned. If the tax credit
3 allowed pursuant to this Section exceeds the amount of taxes due from a taxpayer,
4 then the taxpayer may carry any unused credit forward to be applied against
5 subsequent tax liability for a period not to exceed five years. However, in no event
6 shall the amount of the tax credit applied by a taxpayer in a taxable period exceed the
7 amount of taxes due from the taxpayer for that taxable period.
8 (2) All entities taxed as corporations for Louisiana income tax purposes shall
9 claim any credit on their corporation income and franchise tax return.
10 (3) Individuals, estates, and trusts shall claim any credit on their income tax
11 return.
12 (4) Entities not taxed as corporations shall claim their share of any credit on
13 the returns of the partners or members as follows:
14 (a) Corporate partners or members shall claim their share of any credit on
15 their corporation income tax returns.
16 (b) Individual partners or members shall claim their share of any credit on
17 their individual income tax returns.
18 (c) Partners or members that are estates or trusts shall claim their share of
19 any credit on their fiduciary income tax returns.
20 C. Credits previously granted to a taxpayer, but later disallowed, may be
21 recovered by the secretary of the Department of Revenue through any collection
22 remedy authorized by R.S. 47:1561.3.
23 D. The department may promulgate rules in accordance with the
24 Administrative Procedure Act including rules to establish the policies and criteria
25 regarding program eligibility and any other matter necessary to carry out the intent
26 and purposes of this Section.
27 E. No credit shall be granted pursuant to the provisions of this Section for
28 the employment of eligible students on or after December 31, 2029.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-107 ORIGINAL
HB NO. 637
1 Section 2. The provisions of this Act shall be applicable to taxable years beginning
2on or after January 1, 2024.
3 Section 3. The provisions of this Act shall become effective on January 1, 2024.
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 637 Original 2023 Regular Session Mincey
Abstract: Establishes a non-refundable income or corporation franchise tax credit for the
employment of eligible students as interns in work-based programs designed to
incorporate on-the-job training in high-wage, high-demand industry sectors.
Proposed law provides for the establishment of a non-refundable income or corporation
franchise tax credit for a company that employs eligible students as interns in a work-based
program designed to educate the student in a classroom setting as well as incorporate on-the-
job training in high-wage, high-demand industry sectors. The amount of the credit shall
equal the amount paid per internship per calendar year up to a maximum amount of $2,500
per intern.
Proposed law defines an "eligible student" as a full-time student attending a public
secondary school in La. who is no less than 16 years of age at the time of the commencement
of an internship.
Proposed law provides that if the tax credit earned for the taxable period exceeds the amount
of taxes due, the taxpayer may carry forward the unused portion as a credit for future tax
liabilities for up to five years. Proposed law prohibits the amount of the tax credit applied
by a taxpayer in a taxable period to exceed the amount of taxes due from the taxpayer for
that taxable period.
Proposed law provides for application of the tax credit on tax returns as well as the recovery
of credits disallowed by the Dept. of Revenue.
Proposed law prohibits credits from being granted for the employment of eligible students
on or after Dec. 31, 2029.
Proposed law is applicable to taxable years beginning on or after Jan. 1, 2024.
Effective Jan. 1, 2024.
(Adds R.S. 47:6034)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.