Louisiana has long recognized the need to invest in its workforce. With a shortage of skilled workers and persistent out-migration of young talent, Better Louisiana is advocating a bill this legislative session (House Bill 533) that offers a timely, strategic update to two underutilized tax credit programs—consolidating and enhancing them to better serve students, employers, and the state economy.
HB 533 combines the Apprenticeship Tax Credit and the Youth Jobs Tax Credit into a unified Work-Based Learning Tax Credit program. With a consolidated $7.5 million annual cap beginning in 2026, the restructured program reflects Louisiana’s growing emphasis on apprenticeships, internships, and youth employment as essential pathways to career readiness.
Importantly, the bill reduces the required hours of employment from 250 to 100, aligning with the Louisiana Department of Education’s internship requirements. The credit amount would double—from $1.25 to $2.50 per hour—bringing the maximum per-participant credit from $1,250 to $2,500. For employers, this increase makes the financial incentive more meaningful. For students earning minimum wage, the credit could cover nearly a third of their pay, encouraging businesses to take part.
Despite the promise of these current tax credit programs, usage to date has been low. In FY 2023–24, apprenticeship-related tax credit claims totaled just $363,877. For the Youth Jobs Credit, total claims were only $29,250 in the most recent year—a stark contrast to the $5 million cap.
The state has 4,099 active registered apprentices across 124 programs. Yet, school-based work-based learning remains limited: in 2022–2023, only 2,143 students were enrolled in internship courses, and just 4.9% of graduates had an internship noted on their transcript. That number has hovered below 5% for the past five years, despite growing momentum around work-based learning.
These numbers illustrate the urgent need to scale up access and participation. HB 533 addresses this gap by expanding eligibility to include not just registered apprentices but also interns and youth workers—particularly those from historically marginalized or economically disadvantaged backgrounds.
The bill also aligns with the state’s accountability framework, which now rewards schools for increasing student participation in work-based learning. Beginning in the 2025–2026 school year, one of the main elements of a school’s accountability score will be the percentage of career-focused students participating in internships or apprenticeships.
By aligning tax incentives for employers with performance incentives for schools, HB 533 creates a coordinated effort to grow the pipeline of skilled workers.
By investing in work-based learning at scale, Louisiana is planting seeds for a stronger, more sustainable workforce. HB 533 deserves broad support—not just as a tax incentive, but as a strategy to keep our young talent right here at home.