La. R.S. 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 tax 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 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 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 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 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; Acts 2024, 3rd Ex. Sess., No. 6, §1, eff.
Jan. 1, 2026.