Establishes a tax credit for businesses that invest in certain school programs (OR DECREASE GF RV See Note)
Impact
The legislation aims to enhance the workforce development efforts within Louisiana by encouraging companies to engage students in meaningful intern experiences. By providing a tax credit of up to $2,500 per eligible intern, the bill seeks to alleviate the financial burden on businesses for integrating students into their workforce. This initiative is expected to strengthen partnerships between educational institutions and the business community, aligning educational outcomes with labor market needs.
Summary
House Bill 637 proposes to establish a non-refundable income or corporation franchise tax credit for businesses that employ eligible students as interns in work-based learning programs. The intention of this bill is to create job opportunities for students while simultaneously providing businesses with a financial incentive to offer internships that combine classroom learning with practical experience in high-wage, high-demand industries.
Sentiment
The sentiment surrounding HB 637 is generally positive among supporters, who argue that it will stimulate both student employment and business growth. Advocates emphasize the benefits of hands-on experience for students, helping them acquire skills that are critical in today’s economy. However, there may also be concerns about the adequacy of internships and ensuring they meet educational standards, with some legislators possibly wary of broad tax incentives without accountability measures.
Contention
Potential points of contention could arise surrounding the definition of eligible students and what qualifies as a proper internship. Further discussions may focus on the limitations of the tax credits, particularly the expiration date for the credits granted after December 31, 2029. Opponents may question whether the bill sufficiently addresses essential oversight regarding internship quality and student engagement, raising debates on the balance between incentivizing businesses and protecting students’ educational experiences.
Establishes the Life Sciences Investment Tax Credit Program which consists of a Life Sciences Investment Tax Credit and a Life Sciences FDA Medical Device User Fee tax credit (OR DECREASE GF RV See Note)
Repeals the corporate income tax and franchise taxes and prohibits certain corporate taxpayers from claiming certain refundable tax credits (Items #43 & 44) (OR DECREASE GF RV See Note)