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 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)