2023 Louisiana Laws › Revised Statutes › Title 47 - Revenue and Taxation › §47:6028. Louisiana Youth Jobs Tax Credit Program

RS 47:6028 - Louisiana Youth Jobs Tax Credit Program
A. Purpose. It is hereby found that disadvantaged youth in Louisiana are often unemployed or underemployed through no fault of their own. The purpose of this program is to help young people entering the workforce have a successful start by providing them critical workforce skills that will serve them well for their entire careers.
B. Definitions. For purposes of this Section:
(1) "Department" means the Louisiana Department of Revenue.
(2) "Eligible youth" means an individual who:
(a) Has attained the age of sixteen but not yet attained the age of twenty-four.
(b) Is unemployed prior to being hired by a business that will apply for a credit pursuant to the provisions of this Section.
(c) 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.
(d) Meets at least one of the following criteria:
(i) Is at least eighteen years old, is no longer in school, and does not have a high school diploma, HiSET or GED credential, or high school equivalency diploma.
(ii) Is a member of a family that is receiving assistance from the Family Independence Temporary Assistance Program.
(iii) Is a member of a family that is receiving benefits through the Supplemental Nutrition Assistance Program.
(iv) Is a member of a family that is receiving assistance from the Kinship Care Subsidy Program.
(v) Is a member of a family that is receiving assistance or benefits under the Temporary Assistance for Needy Families Program.
(vi) Has served time in jail or prison or is on probation or parole.
(vii) Is pregnant or is a parent.
(viii) Is homeless.
(ix) Is currently or was in foster care, extended foster care, or the custody of the Department of Children and Family Services.
(x) Is a veteran.
(xi) Is the child of a parent who is currently incarcerated or was released from incarceration within the past two years.
(xii) Lives in public housing or receives housing assistance such as a Section 8 voucher.
(3) "Full-time position" means a position in which a person works at least thirty-two hours per week.
(4) "Part-time position" means a position in which a person works at least twenty hours per week but less than thirty-two hours per week.
(5) "Secretary" means the secretary of the Louisiana Department of Revenue.
C. Administration of the credit. There shall be allowed a nonrefundable tax credit against income and corporation franchise taxes for a business that hires one or more eligible youth on or after July 1, 2021. Notwithstanding any provision of this Section to the contrary, no credit shall be granted unless the eligible youth works at least three consecutive months in a full-time or part-time position at the business.
(1) The credit shall be equal to the following for each eligible youth hired:
(a) One thousand two hundred fifty dollars for hiring an eligible youth in a full-time position.
(b) Seven hundred fifty dollars for hiring an eligible youth in a part-time position.
(2) The hiring business shall earn a credit equal to the applicable amount provided in Paragraph (1) of this Subsection in the year in which the eligible youth completes the third consecutive month of work in either a full-time or part-time position.
(3) The hiring business shall not terminate an employee or otherwise reduce its workforce with the intention of creating a new hire eligible for this credit.
(4) The total amount of tax credits granted by the department in any calendar year shall not exceed five million dollars. The department shall by rule establish the method of allocating available tax credits to investors including but not limited to a first-come, first-served system; reservation of tax credits for a specific time; or other method that the department, in its discretion, may find beneficial to the program.
(5) Within sixty days of being hired, each eligible youth shall provide to the hiring business proof of age and of meeting one of the eligibility criteria established in Subparagraph (B)(2)(d) of this Section.
(6) The hiring business shall submit or maintain proof that each eligible youth meets eligibility criteria, as required by the secretary.
D. Application of the credit. (1) The credit shall be allowed against the income or corporation franchise tax due from a taxpayer for the taxable period in which the credit is earned. If the tax credit allowed pursuant to this Section exceeds the amount of such taxes due from a taxpayer, then the taxpayer may carry forward any unused portion as a credit against subsequent tax liability for a period not to exceed five years. However, in no event shall the amount of the tax credit applied by a taxpayer in a taxable period exceed the amount of such taxes due from the taxpayer for that taxable period.
(2) All entities taxed as corporations for Louisiana income tax purposes shall claim any credit on their corporation income and franchise tax return.
(3) Individuals, estates, and trusts shall claim their share of any credit on their income tax return.
(4) Entities not taxed as corporations shall claim their share of any credit on the returns of the partners or members as follows:
(a) Corporate partners or members shall claim their share of any credit on their corporation income tax returns.
(b) Individual partners or members shall claim their share of any credit on their individual income tax returns.
(c) Partners or members that are estates or trusts shall claim their share of any credit on their fiduciary income tax returns.
E. Recovery of credits by the department. Credits previously granted to a taxpayer, but later disallowed, may be recovered by the secretary through any collection remedy authorized by R.S. 47:1561.3.
F. The secretary may promulgate rules in accordance with the Administrative Procedure Act to establish the policies and criteria regarding program eligibility and any other matter necessary to carry out the intent and purposes of this Section.
G. A taxpayer shall not receive any other incentive for the job creation or hiring of an eligible youth for which the taxpayer has received a tax credit under this Section.
H. No credit shall be earned pursuant to the provisions of this Section after December 31, 2025.
Acts 2021, No. 454, §1, eff. June 23, 2021.