The first month of the 2025 Regular Session closed with a long week of debates on key economic development priorities, including a tax credit focused on incentivizing greater work-based learning opportunities for high-schoolers in Louisiana and efforts to reform and optimize the Department of Transportation and Development (DOTD). House Natural Resources also held another hours-long hearing on legislation that would be damaging to carbon capture and storage (CSS) opportunities across the state. Legislators have nearly reached the halfway point of session and must adjourn by June 12.
Read on for a recap of week four and a look ahead at week five.
Work-Based Learning / Workforce Investment Council
House Ways and Means approved 1A-supported legislation, HB 533 by Rep. Carver, to establish a Work-Based Learning Tax Credit, which would provide employers a credit for each eligible apprentice, intern, and youth worker they employ for a minimum of 100 hours during a taxable period. Employers would qualify for a tax credit of $2.50 per hour, up to $2,500.
Work-based learning is critical to preparing Louisiana’s students for careers through real-world experience. The state’s new school accountability formula places increased emphasis on work-based learning and requires a student’s on-the-job experience to be paid. By aligning tax incentives for employers with the accountability formula for schools, HB 533 creates a coordinated effort to promote career education and workforce training, helping to meet industry’s need for more skilled workers while also keeping our young talent in Louisiana.
House Ways and Means unanimously approved HB 533 as amended last week and the bill now heads for a hearing in House Appropriations.
Senate Education advanced another 1A-supported measure aimed at improving Louisiana’s workforce landscape, HB 373 by Rep. Hughes. HB 373 would require the Workforce Investment Council to perform an annual return on investment analysis on industry-based credentials earned in high school. Requiring collection and analysis of credential data will enable stronger alignment of Louisiana’s workforce needs with the credentials offered in high schools, setting our students up for success at landing high-wage jobs when they graduate.
Senate Education reported HB 373 favorably as amended last week and the bill now heads for debate in the full Senate.
M.J. Foster Promise Program
Legislators continued to advance two 1A-supported measures pertaining to the M.J. Foster Promise Program, both continuing to receive unanimous support:
- HB 558 by Rep. Davis would expand eligibility for the M.J. Foster Promise Program to include formerly incarcerated individuals, unless they were convicted of certain violent crimes. HB 558 helps to address Louisiana’s workforce needs by providing a pathway for the formerly incarcerated to access meaningful employment, a path proven to help reduce recidivism within the criminal justice system. HB 558 was approved by the full House and now heads to Senate Education
- HB 395 by Rep. Brass would better align program funding to high-demand career paths by expanding eligible programs for M.J. Foster Promise Program funding to include those associated with Louisiana Economic Development (LED) projects. HB 395 was reported favorably by Senate Education and now heads to the full Senate
Carbon Capture and Storage (CCS)
House Natural Resources held another long hearing last Wednesday, focused on a series of 1A-opposed bills that would have a chilling effect on the future of carbon capture and storage (CCS) projects in Louisiana. Committee members rejected the most harmful bill on the agenda, HB 396 by Rep. McCormick, which sought to declare carbon capture illegal in the State of Louisiana. Unfortunately, one 1A-opposed measure did clear the committee, HB 601 by Chairman Geymann, which would impose costly and burdensome regulations on CCS pipeline companies and remove the ability for operators to utilize eminent domain authority, making it significantly more difficult to establish pipelines and effectively halting CCS development.
The State Legislature and the Louisiana Department of Energy and Natural Resources have worked in recent years to establish a robust regulatory framework supporting responsible CCS development in Louisiana. 1A will continue to oppose measures that seek to undercut the progress made to continue positioning Louisiana as a global energy leader.
DOTD Reform and Optimization
Governor Landry and legislators have made clear that a top priority of the 2025 Regular Session is reforming and optimizing the Department of Transportation and Development (DOTD), in effort to improve the Department’s operations and make headway on the state’s nearly $20 billion infrastructure backlog. House legislators approved a series of bills proposed by House Transportation Chairman Ryan Bourriaque last week – these 1A-supported measures cleared the House nearly unanimously and now head for consideration in Senate Transportation.
- HB 528 would create the Office of Transformation within DOTD and strategically reorganize offices within the department to drive accountability and efficiency and provide for clear authority and delegation of duties
- HB 556 would streamline DOTD operations and employee functions to allow the department to operate with flexibility and efficiency, realigning certain offices to expedite and provide greater accountability for timely project delivery. Most importantly, it would ensure that Transportation Trust Fund dollars are only used for project delivery costs
- HB 640 would create a new state entity, the office of Louisiana Highway Construction, which would be tasked with reimagining transportation project delivery and operations
LOOKING AHEAD
Lawmakers are nearing the halfway point of session and are jumping straight into business early this week. House legislators will take their first crack at the all-important state budget (HB 1) and capital outlay (HB 2) bills on Monday morning, to be considered in House Appropriations and House Ways and Means respectively.
Then on Tuesday, 5/13, House Appropriations will hear two 1A-priority bills – legislation to create the High Impact Jobs Program within Louisiana Economic Development (LED) (HB 507 by Rep. Emerson) and to create the Site Investment and Infrastructure Improvement Fund (HB 433 by Rep. Deshotel). Senate Judiciary A is also gearing up to hear debates on a series of business-backed House bills intended to address Louisiana’s insurance crisis. Urge your legislator to support these common-sense legal reforms through LABI’s call to action HERE.
1A is tracking key legislation across three priority areas:
- Economic competitiveness
- Talent development
- Infrastructure investment
Be on the lookout for 1A legislative updates on these issues, and more, at the beginning of each week during Session.