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Overview
The Louisiana Youth Jobs Tax Credit (the “LYJTC”) is a non-refundable tax credit for Louisiana employers who hire disadvantaged youth. Disadvantaged youth in Louisiana are often unemployed or underemployed through no fault of their own.
Opportunity
Employers hiring Eligible Youth can receive a tax credit in the amount of:
- $1,250 for each full-time Eligible Youth.
- $750 for each part-time Eligible Youth.
Eligibility
Qualification for the LYJTC is that an “Eligible Youth”, defined as an employee between the ages of 16 and 23: (1) was unemployed prior to being hired; (2) 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; and (3) meets at least one of the following criteria:
- Is at least 18 years old, is no longer in school, and does not have a high school diploma, HiSET or GED credential, or high school equivalency diploma.
- Has served time in jail or prison or is on probation or parole.
- Is pregnant or is a parent.
- Is homeless.
- Is currently or was in foster care, extended foster care, or the custody of the Department of Children and Family Services.
- Is a veteran.
- Is the child of a parent who is currently incarcerated or was released from incarceration within the past two years.
- Lives in public housing or receives housing assistance such as a Section 8 voucher.
- Is a member of a family that is receiving assistance from the Family Independence Temporary Assistance Program, Supplemental Nutrition Assistance Program, Kinship Care Subsidy Program, or Temporary Assistance for Needy Families Program.
An employee who satisfies the requirements above must also work at least three (3) consecutive months in a full-time or part-time position at the business for the business to take the credit.
The LYJTC is taken against income and corporation franchise taxes for a business that hires one or more Eligible Youth on or after July 1, 2021. Any unused credit can be carried forward 5 years. LYJTC can be used alongside WOTC.
Contact Synergi Partners today to see how we can help your company determine if you are employing Eligible Youths and if you are eligible for the LYJTC.