Beginning in 2026, Louisiana employers who offer apprenticeships, internships or other youth work experiences will be eligible for a new state income tax credit aimed at strengthening the state’s workforce pipeline, according to Leaders for a Better Louisiana.
The work-based learning tax credit was created by Act 376 of the 2025 regular legislative session. The law repeals two underused credits and replaces them with a single, expanded incentive that aligns with Louisiana’s updated high school accountability system, which places greater emphasis on work-based learning opportunities.
Louisiana trails other Southern states in participation in internships and apprenticeships, despite growing evidence that early, real-world work experience improves students’ skills and long-term employment prospects.
In 2024, the state Board of Elementary and Secondary Education approved a new accountability framework that rewards high schools for offering such opportunities. Students who earn work-based learning points under the system also qualify their employers for the tax credit.
The credit applies to eligible hires made in 2026, and businesses can claim it on tax returns beginning in 2027. Employers can receive $2.50 per hour worked, up to $2,500 per worker each year, provided the individual works at least 100 hours. Credits exceeding a company’s tax liability may be carried forward for up to five years.
The total tax credit is capped at $1 million in its first year and can grow to $7.5 million in future years based on utilization. Applications will be approved on a first-come, first-served basis.
The tax credit is particularly significant in Louisiana, where the state faces a major gap in the pipeline connecting high school students to postsecondary education and the workforce.
A 2025 report from Leaders for a Better Louisiana found that the state is losing students in the transition from high school to postsecondary education and the workforce.
The report showed that of roughly 44,000 students enrolled in Louisiana high schools in 2022, about half were believed to have entered the workforce directly after graduation without earning a postsecondary credential or participating in a work-based learning experience.
