Removes the 50% cap on the deduction from taxable income of tuition and fees paid by a taxpayer for a dependent child to a nonpublic elementary or secondary school or to a public elementary or secondary lab school which is operated by a public college or university, making the deduction equal to the full amount paid up to $5,000 per child. (gov sig) (EN -$5,300,000 GF RV See Note)
Impact
The amendment is set to affect the state’s tax revenue, as it is projected to reduce general fund revenues by approximately $5.3 million. The bill will incentivize higher enrollment in nonpublic schools by making education more affordable for families who may have financial restrictions. For many, this means better educational opportunities and options outside of their community schools, which can lead to a shift in student demographics and funding allocations in the public education sector.
Summary
Senate Bill 13 (SB13) amends Louisiana's income tax deductions by removing the previous 50% cap on deductions for tuition and fees paid for dependent children attending nonpublic elementary and secondary schools or public laboratory schools operated by a public college or university. The bill allows taxpayers to claim a deduction for the full amount paid for tuition and fees, up to a maximum of $5,000 per child. This change aims to provide greater financial support to families enrolling their children in eligible educational institutions, potentially increasing access to nonpublic education for more students across Louisiana.
Sentiment
The sentiment surrounding SB13 appears to be largely supportive among those advocating for educational choice and financial support for families. Proponents argue that this bill enhances educational access and allows parents to make informed choices about their children's education without being overly burdened by costs. However, concerns have been raised by critics who worry that increasing tax deductions for nonpublic education may divert essential funding from public schools, potentially exacerbating existing inequities in the education system.
Contention
Notable points of contention surrounding SB13 include debates about the fairness of tax deductions favoring nonpublic education over public schooling. Critics argue that enhancing financial incentives for nonpublic schooling could significantly impact public school funding. These discussions underscore differing viewpoints on educational equity, parental choice, and the government's role in funding various educational avenues. As the bill is implemented, it will be important to monitor its effects on both public and nonpublic educational institutions and the overall landscape of education in Louisiana.
Increases the amount of the individual income tax deductions for elementary and secondary school tuition, educational expenses for home-schooled children, and educational expenses for a quality public education (EN -$2,200,000 GF RV See Note)
Excludes amounts deposited into certain education savings accounts for tuition expenses for elementary and secondary schools from state income tax. (1/1/22) (EN DECREASE GF RV See Note)
Creates the Louisiana New Start Education Tax Credit which grants a refundable tax credit per tax year for up to $4,000 (1) paid for tuition, fees, and other eligible costs required for a student who resides within the attendance zone of a failed public school to enroll in a qualified nonpublic elementary or secondary school or a college lab school or (2) contributed to an eligible nonprofit scholarship-funding organization which provides assistance to such students attending such schools. (1/1/12) (OR SEE FISC NOTE GF RV See Note)
Prohibits the $25 credit for educational expenses for each child attending nonpublic elementary and secondary school if the tax deduction for payment of tuition and fees is taken and establishes the Student Assessment for a Valuable Education (SAVE) Credit Program. (gov sig) (EN -$347,700,000 GF RV See Note)
Excludes amounts deposited into certain education savings accounts for tuition expenses for elementary and secondary schools from state income taxes (RE DECREASE GF RV See Note)
Provides relative to the authority of private nonprofit elementary or secondary schools and public elementary or secondary schools to conduct certain games of chance (EN INCREASE SG RV See Note)