NEW ORLEANS - Louisiana has rolled out an expanded Work-Based Learning Tax Credit that increases income tax incentives for businesses that hire students and other eligible young workers through internships, apprenticeships and related positions.
The new Act, which took effect Jan. 1, repealed and replaced two underutilized credits and increases the incentive for employers by providing a $2.50 tax credit for each hour worked by an eligible student or intern, up to $2,500 per worker per year, provided the student works at least 100 hours during the tax year. This represents a significant increase over the prior credit, which offered $1.25 per hour and required 250 hours of employment.
Louisiana Lags Behind
State leaders hope the changes will help address Louisiana’s relatively low participation in internships and apprenticeships compared with neighboring Southern states. Only about 5% of Louisiana’s more than 40,000 annual high school graduates earn internship credit, a rate significantly lower than in states such as Georgia and Tennessee. according to Leaders for a Better Louisiana (Better Louisiana).
"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 Better Louisiana in a statement.
"In looking around the country it is clear that expansion of work-based learning opportunities for high school students is the wave of the future. For students it allows them to learn in a real-world setting, enhance their skills, and improve their employment opportunities," the Better Louisiana statement said.
Work-Based Learning Tax Credit
At the program level, total credits issued statewide are capped at $1 million in the first year. That cap may increase in future years, up to a maximum of $7.5 million, if participation grows.
Applications will be approved on a first-come, first-served basis and must be submitted annually between Jan. 1 and Feb. 28 through the Louisiana Taxpayer Access Point. Employers will be able to claim the credit on their tax returns beginning in 2027. Because the credit is non-refundable, any portion that exceeds a business’s Louisiana income tax liability may be carried forward and applied to future tax years for up to five years.
Policy Goals & Outcomes
A Better Louisiana report issued in 2025 demonstrated that of the 44,000 students enrolled in Louisiana high schools in 2022, 50% were believed to have gone straight into the workforce without a postsecondary credential or work-based learning experience.
"This means that in many cases the young workers that businesses are hiring do not have the skills the company needs and more training is required," said Better Louisiana. "For students entering the workforce it means their career and earning opportunities are more limited."
The new Work-Based Learning Tax Credit Act is intended to help address these issues by reducing the cost of hiring apprentices, interns and youth workers. "Giving students real-world work opportunities early exposes them to job opportunities inside Louisiana and increases the likelihood that they will stay in the state as their careers progress," Better Louisiana said.
School Changes
The expanded tax credit dovetails with the implementation of Louisiana’s revised school accountability system which now incorporates work-based learning as a measurable component of high school performance. It began during the 2025–26 academic year and gives schools and districts the ability to earn "accountability points" based on student participation in approved internships, apprenticeships and other qualifying work-based learning experiences.
Under the updated framework, greater weight is placed on career readiness indicators alongside traditional academic measures. Education officials have said the changes are intended to encourage stronger connections between high schools and employers by incentivizing districts to expand access to work-based learning opportunities. Students who participate in qualifying programs under the accountability system also help make their employers eligible for the Work-Based Learning Tax Credit.
