HLS 25RS-740 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 533
BY REPRESENTATIVE CARVER
TAX CREDITS: Establishes the Work-Based Learning Tax Credit for employment of
apprentices, interns, and youth workers
1 AN ACT
2To amend and reenact R.S. 23:386 and R.S. 47:6033(G) and to enact R.S. 47:6003, relative
3 to tax credits; to establish a tax credit for employment of certain apprentices, interns,
4 and youth workers; to provide for the amount of the credit; to provide for
5 qualifications for the credit; to provide for requirements and limitations with respect
6 to the credit; to provide for claiming of the credit; to authorize recovery of credit
7 amounts in certain circumstances; to provide relative to apprenticeship programs of
8 the Louisiana Workforce Commission; to limit the period in which a tax credit
9 relative to apprenticeships may be earned; to provide for definitions; to authorize
10 promulgation of administrative rules; to provide for applicability; to provide for an
11 effective date; and to provide for related matters.
12Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 23:386 is hereby amended and reenacted to read as follows:
14 §386. Apprentice defined
15 The term "apprentice" as used in this Chapter is defined as a worker at least
16 sixteen years of age, except where a higher minimum age standard is otherwise fixed
17 by law, who is employed to learn an apprenticeable occupation pursuant to the
18 standards of apprenticeship as provided for in the Louisiana Administrative Code,
19 Title 40, Part 9, §317 in order to fulfill the requirements of the Louisiana
20 Administrative Code, Title 40, Part 9, §301, and who has entered into a written
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HB NO. 533
1 apprentice agreement with an employer, an association of employers, or an
2 organization of employees, providing for a time-based program model with not less
3 than two thousand hours of reasonably continuous employment, a competency-based
4 program model, or a hybrid program, and for participation in an approved program
5 of training through employment and through education in related and supplemental
6 subjects.
7 Section 2. R.S. 47:6033(G) is hereby amended and reenacted and R.S. 47:6003 is
8hereby enacted to read as follows:
9 §6003. Work-Based Learning Tax Credit
10 A. This Section shall be known and may be cited as the "Work-Based
11 Learning Tax Credit Act".
12 B. The legislature hereby finds that an insufficient number of people with
13 adequate levels of on-the-job training is an impediment to workforce development
14 and economic growth; that well-compensated jobs would be more abundant in this
15 state if workers overall possessed greater levels of skills and work experience; that
16 apprenticeships and internships are integral components of work-based learning
17 initiatives in Louisiana's school accountability system; and that, as a critical strategy
18 for curbing out-migration, public colleges and universities of this state strive to
19 facilitate greater student participation in work-based learning. The legislature hereby
20 declares that establishing a tax credit which provides incentives for businesses to
21 employ apprentices is in the best economic interest of this state.
22 C. For purposes of this Section, the following terms shall have the meanings
23 ascribed to them in this Subsection:
24 (1) "Department" means the Department of Revenue.
25 (2) "Eligible apprentice" means a person who meets either of the following
26 criteria:
27 (a) Has entered into a written apprentice agreement with an employer or an
28 association of employers as part of a registered apprenticeship program provided for
29 in R.S. 23:381 et seq.
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HB NO. 533
1 (b) Is enrolled in a training program accredited by the National Center for
2 Construction Education and Research which has no less than four levels of training
3 and no less than five hundred hours of instruction.
4 (3) "Intern" means a student learner who participates in a work-based
5 learning program authorized and regulated by the provisions of LAC 28:CXV.3113
6 or any successor regulations the Board of Elementary and Secondary Education may
7 publish relative to on-the-job training and related classroom instruction.
8 (4) "Youth worker" means an individual who has attained the age of fifteen
9 but not yet attained the age of twenty-four; is unemployed prior to being hired by a
10 business that will apply for a credit authorized by this Section; will be working in a
11 full-time or part-time position that pays wages that are equivalent to the wages paid
12 for similar jobs, with adjustments for experience and training; and meets at least one
13 of the following criteria:
14 (a) Is at least eighteen years old, is no longer in school, and does not have
15 a high school diploma, HiSET or GED credential or high school equivalency
16 diploma.
17 (b) Is a member of a household that is receiving assistance from the Family
18 Independence Temporary Assistance Program.
19 (c) Is a member of a household that is receiving benefits through the
20 Supplemental Nutrition Assistance Program.
21 (d) Is a member of a household that is receiving assistance from the Kinship
22 Care Subsidy Program.
23 (e) Is a member of a family that is receiving assistance or benefits under the
24 Temporary Assistance for Needy Families Program.
25 (f) Has served time in jail or prison or is on probation or parole.
26 (g) Is pregnant or is a parent.
27 (h) Is homeless.
28 (i) Is currently or was in foster care, extended foster care, or the custody of
29 the Department of Children and Family Services.
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HB NO. 533
1 (j) Is a veteran.
2 (k) Is the child of a parent who is currently incarcerated or was released from
3 incarceration within the past two years.
4 (l) Lives in public housing or receives housing assistance such as a Section
5 8 voucher.
6 D.(1) There shall be allowed a credit against Louisiana income tax for the
7 employment of eligible apprentices, interns, and youth workers. The amount of the
8 credit for each eligible apprentice, intern, and youth worker employed for a
9 minimum of one hundred hours during the taxable period shall equal two dollars and
10 fifty cents per hour of employment or two thousand five hundred dollars, whichever
11 is less. The total amount of tax credits granted pursuant to this Section shall not
12 exceed seven million five hundred thousand dollars annually.
13 (2) The department shall establish by rule the method of allocating available
14 tax credits to employers including but not limited to a first-come, first-served system,
15 reservation of tax credits for a specific time, or other method that the department, in
16 its discretion, may find beneficial to the program. If in any calendar year the
17 department grants a total amount of tax credits that is less than the authorized limit,
18 the amount of residual unused credits shall carry forward to subsequent calendar
19 years and may be granted in any year without regard to the annual limit provided for
20 in this Subsection.
21 E.(1) The department, in consultation with the Louisiana Workforce
22 Commission, shall establish by rule the procedures for determining an employer's
23 eligibility for the credit.
24 (2) The Louisiana Workforce Commission shall annually provide to the
25 department a list of businesses that participate in the apprenticeship programs
26 administered by the commission.
27 (3) In order for an employer to be eligible for a credit based upon employing
28 a student enrolled in a training program accredited by the National Center for
29 Construction Education and Research, that student shall have successfully completed
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1 no less than two levels of training and no less than two hundred fifty hours of
2 instruction. The department shall establish which student enrollment and transcript
3 data from the National Center for Construction Education and Research are
4 necessary in order to determine an employer's eligibility for the credit authorized by
5 this Section.
6 F.(1) The credit shall be allowed against the income tax due from a taxpayer
7 for the taxable period in which the credit is earned. If the credit allowed pursuant to
8 this Section exceeds the amount of taxes due from a taxpayer, then the taxpayer may
9 carry any unused credit forward to be applied against subsequent tax liability for a
10 period not to exceed five years. However, in no event shall the amount of the tax
11 credit applied by a taxpayer in a taxable period exceed the amount of taxes due from
12 the taxpayer for that period.
13 (2) All entities taxed as corporations for Louisiana income tax purposes shall
14 claim any credit on their corporation income tax return.
15 (3) Individuals, estates, and trusts shall claim any credit on their income tax
16 return.
17 (4) Entities not taxed as corporations shall claim their share of any credit on
18 the returns of the partners or members as follows:
19 (a) Corporate partners or members shall claim their share of any credit on
20 their corporation income tax returns.
21 (b) Individual partners or members shall claim their share of any credit on
22 their individual income tax returns.
23 (c) Partners or members that are estates or trusts shall claim their share of
24 any credit on their fiduciary income tax returns.
25 G. Credits previously granted to a taxpayer but later disallowed may be
26 recovered by the secretary of the department through any collection remedy
27 authorized by R.S. 47:1561.3.
28 H. The department may promulgate rules in accordance with the
29 Administrative Procedure Act to establish the policies and criteria regarding program
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1 eligibility and any other matter necessary to carry out the intent and purposes of this
2 Section.
3 I. No credit shall be granted for the employment of eligible apprentices,
4 interns, or youth workers before January 1, 2026, or after December 31, 2031.
5 * * *
6 §6033. Apprenticeship tax credits
7 * * *
8 G. No credit shall be granted for the employment of eligible apprentices
9 before January 1, 2022, or after December 31, 2028. No credit shall be earned
10 pursuant to the provisions of this Section after December 31, 2025.
11 Section 3. The provisions of this Act shall apply to taxable periods beginning on or
12after January 1, 2026.
13 Section 4. This Act shall become effective on January 1, 2026.
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 533 Original 2025 Regular Session Carver
Abstract: Establishes a tax credit for the employment of eligible apprentices, interns, and
youth workers.
Proposed law authorizes an income tax credit for the employment of eligible apprentices,
interns, and youth workers, defined as follows:
(1)"Eligible apprentice" means a person who either has entered into a written apprentice
agreement with an employer or association of employers as part of a registered
apprenticeship program provided for in present law; or 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 500 hours of
instruction.
(2)"Intern" means a student learner who participates in a work-based learning program
authorized and regulated by the provisions of present administrative rule or any
successor regulations relative to on-the-job training and related classroom
instruction.
(3)"Youth worker" means an individual who has attained the age of 15 but not yet
attained the age of 24; is unemployed prior to being hired by a business that will
apply for a credit authorized by proposed law; will be working in a full-time or
part-time position that pays wages that are equivalent to the wages paid for similar
jobs, with adjustments for experience and training; and meets at least one of several
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HB NO. 533
criteria related to educational attainment, household income, justice system
involvement, receiving public assistance, being a parent or pregnant, veteran status,
and housing status.
Proposed law establishes that for each eligible apprentice, intern, and youth worker
employed for a minimum of 100 hours during the taxable period, an employer shall qualify
for a credit equal to $2.50 per hour of employment or $2,500, whichever is less.
Proposed law limits the total amount of credits that may be granted annually pursuant to
proposed law to $7.5M. Provides, however, that in any calendar year, if the Dept. of
Revenue (DOR) grants a total amount of tax credits which is less than the $7.5M limit, then
the amount of unused credits shall carry forward to subsequent calendar years and may be
granted in any year without regard to the $7.5M limit.
Proposed law prohibits granting of credits for the employment of eligible apprentices,
interns, or youth workers before Jan. 1, 2026, or after Dec. 31, 2031.
Proposed law requires DOR, in consultation with the La. Workforce Commission, to
establish by rule the procedures for determining an employer's eligibility for the credit.
Requires the La. Workforce Commission to annually provide to DOR a list of businesses
that participate in apprenticeship programs administered by the commission.
Proposed law provides that if the credit exceeds the amount of taxes due from a taxpayer for
a taxable period, then any unused credit amount may be carried forward as a credit against
subsequent tax liability for a period not to exceed five years. Stipulates, however, that the
amount of the credit applied in a taxable period shall not exceed the amount of taxes due
from the taxpayer for that period.
Proposed law authorizes DOR to recover disallowed credits in accordance with collection
remedies established in present law.
Proposed law authorizes DOR to promulgate administrative rules for implementation of
proposed law.
Present law establishes an apprenticeship tax credit program with characteristics similar to
the program provided for in proposed law. Present law prohibits granting of apprenticeship
tax credits for the employment of eligible apprentices before Jan. 1, 2022, or after Dec. 31,
2028. Proposed law changes the termination date to which apprenticeship tax credits may
be earned to Dec. 31, 2025.
Present law relative to labor and employment defines the term "apprentice". Proposed law
adds to this definition references to time-based program models, competency-based program
models, and hybrid programs.
Proposed law applies to taxable periods beginning on or after Jan. 1, 2026.
Effective Jan. 1, 2026.
(Amends R.S. 23:386 and R.S. 47:6033(G); Adds R.S. 47:6003)
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