Louisiana House Bill HB678

Louisiana 2021 Regular Session

• Introduced: 4/21/21
• Refer: 4/22/21
• Report Pass: 5/17/21
• Engrossed: 5/25/21
• Refer: 5/26/21
• Report Pass: 6/2/21
• Enrolled: 6/10/21
• Chaptered: 6/23/21
• Passed: 6/23/21

Caption

Provides for the Louisiana work opportunity tax credit (EN DECREASE GF RV See Note)

Impact

The implementation of HB 678 is projected to have a significant impact on state tax revenues and the labor market dynamics within Louisiana. By incentivizing the hiring of individuals with a criminal history, the bill aims to encourage businesses to take a chance on these candidates, ultimately fostering a more inclusive job market. However, the bill includes stipulations that limit the credit to one instance of usage per re-entrant, and businesses cannot apply for other incentives for the same hires, which may create some restrictions on how these tax benefits can be utilized.

Summary

House Bill 678, proposed by Representative Duplessis, seeks to provide a non-refundable income tax credit for businesses that hire individuals participating in work release programs. This initiative is aimed at facilitating the reintegration of former inmates into the workforce, effectively reducing recidivism rates by promoting employment opportunities that support sustainable behavior changes. The bill specifically offers a tax credit equal to five percent of the wages paid to eligible re-entrants for twelve consecutive months following their release from prison, with a maximum cap of $2,500 per individual hired.

Sentiment

The sentiment surrounding HB 678 appears to be generally positive among supporters who view it as a progressive step towards rehabilitation and workforce reintegration. Advocates emphasize the necessity of creating pathways for formerly incarcerated individuals to gain meaningful employment. Conversely, there are concerns, particularly from critics who argue that such incentives may not address deeper systemic issues and could be seen as a patchwork solution to a more complex problem in criminal justice reform.

Contention

Notable points of contention regarding HB 678 include debates about the effectiveness of tax credits as a primary tool for reducing recidivism and facilitating re-entry into society. Some opponents suggest that merely providing financial incentives does not adequately address barriers to employment such as stigma, lack of skills, and limited access to transportation. Additionally, there are discussions about the potential fiscal implications for state revenue as a result of these tax credits expiring after June 30, 2027, which could impact the longevity and perceived viability of the program.