BATON ROUGE, La. — Louisiana employers will soon be eligible for a new state income tax credit aimed at expanding work-based learning opportunities for students and young workers. Beginning in 2026, the Work-Based Learning Tax Credit will reward businesses that employ registered apprentices, interns, or youth workers, according to Act 376 passed during the 2025 legislative session.
The new credit replaces two underused tax incentives and aligns with the state’s school accountability system, which now emphasizes real-world learning experiences in high schools. Employers can begin claiming the credit on 2027 tax returns for eligible hires made in 2026.
Under the program, businesses can earn a credit of $2.50 per hour worked, up to $2,500 per eligible worker each year. To qualify, the individual must work at least 100 hours within the tax year. Any unused credit can be carried forward for up to five years.
For the first year, total available credits are capped at $1 million, with the potential to grow to $7.5 million in future years based on utilization. Credits will be approved on a first-come, first-served basis, and state officials urge businesses to apply early in 2027.
“Unfortunately, Louisiana lags well behind other Southern states in the number of young people participating in internship and apprenticeship programs, even though they can be an important component in the workforce pipeline,” said Adam Knapp, CEO of Leaders for a Better Louisiana. “That’s why we want Louisiana businesses to be aware of this new credit and learn more about how it can help them meet their workforce needs.”
The initiative follows the Louisiana Board of Elementary and Secondary Education’s 2024 decision to revise the state’s school accountability system to include work-based learning as a performance measure. Students who earn work-based learning points under the system will qualify their employers for the new tax credit.
State policymakers say the measure is designed to strengthen Louisiana’s workforce pipeline by connecting education and employment earlier in students’ careers. A 2025 Better Louisiana report found that roughly half of the 44,000 students enrolled in Louisiana high schools in 2022 entered the workforce without postsecondary credentials or job-based training.
By reducing the cost of hiring apprentices and interns, state officials hope to encourage more employers to participate in building a skilled in-state workforce and improve long-term retention of young talent.
More information about the program is available through the Louisiana Department of Revenue’s Work-Based Learning Tax Credit Bulletin #25-028 and the Louisiana Works apprenticeship portal.