Extends employer's non-refundable apprenticeship tax credit against income tax and corporation franchise tax to taxable periods ending prior to January 1, 2015. (gov sig) (EN -$500,000 GF RV See Note)
Impact
If passed, SB28 will provide financial incentives for employers to engage in apprenticeship programs, thereby potentially leading to an increase in the skilled labor force within the state. This could have a beneficial impact on the overall economy by enabling workers to secure better paying jobs and helping businesses to fill crucial positions that require specific training. The specific amendment to R.S. 47:6033 will allow employers to claim tax credits in a more extended timeframe, which may stimulate the hiring of more apprentices.
Summary
Senate Bill 28 aims to extend the employer's non-refundable apprenticeship tax credit against income tax and corporation franchise tax to taxable periods ending prior to January 1, 2015. This bill is seen as a measure to address the issue of workforce inadequacy by incentivizing businesses to hire apprentices. The Louisiana legislature identifies the lack of a sufficiently trained workforce as a significant barrier to economic growth, and this credit is intended to encourage job training and skill development among employees.
Sentiment
The sentiment around SB28 appears to be supportive, particularly among those who advocate for workforce development and economic growth. The unanimous voting record in the house indicates broad bipartisan support for the bill, suggesting that legislators recognize the importance of strengthening the workforce and the role that apprenticeships can play in achieving that goal. However, debates regarding the efficiency and popularity of tax credits for apprenticeships could emerge during discussions.
Contention
Despite its support, there may be concerns regarding the long-term efficacy of apprenticeship tax credits. Critics might argue that merely extending a tax credit does not necessarily lead to improved training outcomes or job placement rates for apprentices. Additionally, there could be debate around the allocation of tax dollars to support such credits when resources could be directed towards other immediate needs in the workforce sector, creating a discussion about the best use of state funds in promoting education and job training.
Reduces the amount of certain tax credits beginning January 1, 2014, for income tax credits and January 1, 2015, for corporate franchise credits (RE INCREASE GF RV See Note)
Repeals the corporation franchise tax and removes eligibility of certain tax credits to be claimed against corporation franchise tax (OR -$324,000,000 GF RV See Note)
Repeals the corporation franchise tax and limits eligibility of certain credits to be claimed against corporation franchise tax (Item #3) (EN -$574,000,000 RV See Note)