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Coding: Words which are struck through are deletions from existing law;
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Regular Session, 2011
SENATE BILL NO. 177
BY SENATOR HEITMEIER
TAX/INCOME /PERSONAL. Grants a non-refundable income tax credit equal to the
deduction taken by a resident taxpayer on his federal return for interest paid on a loan for
himself or a resident dependent or spouse if they are graduates from the baccalaureate level
and the education loan is a loan for education above the baccalaureate level. (gov sig)
AN ACT1
To enact R.S. 47:297.13, relative to individual income tax; to provide a credit for interest2
paid on certain education loans which pay higher education expenses; and to provide3
for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:297.13 is hereby enacted to read as follows: 6
ยง297.13. Tax credit; interest paid on graduate education loans7
A. There shall be credit against individual income tax due under this8
Part in an amount equal to the adjustment to gross income properly taken by9
a resident taxpayer on his federal income tax return for the same tax period for10
interest paid by the resident taxpayer, or paid on behalf of a resident spouse or11
dependent, during that tax period for a qualified education loan incurred to pay12
qualified higher education expenses as provided for in Internal Revenue Code13
Section 221(b)(1); provided that such resident taxpayer, spouse, or dependent14
is a graduate from the baccalaureate level and the education loan was a loan for15
education above the baccalaureate level.16
B. The credit provided for in this Section shall not be allowed to a17 SB NO. 177
SLS 11RS-252 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
taxpayer if he, or the spouse or dependent for whom the credit is taken, is not1
a resident of the state of Louisiana for the tax period for which the credit is2
taken.3
Section 2. The provisions of this Act shall be applicable to tax years beginning on4
and after January 1, 2011.5
Section 3. This Act shall become effective upon signature by the governor or, if not6
signed by the governor, upon expiration of the time for bills to become law without signature7
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If8
vetoed by the governor and subsequently approved by the legislature, this Act shall become9
effective on the day following such approval.10
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Heitmeier (SB 177)
Proposed law grants a non-refundable credit against individual income tax in an amount
equal to the deduction from gross income properly taken by a resident taxpayer on his
federal income tax return for the same tax period for interest paid by the resident taxpayer,
or interest paid on behalf of a resident spouse or dependent, during that tax period for a
qualified education loan incurred to pay qualified higher education expenses. However, the
resident taxpayer, spouse, or dependent must be a graduate from the baccalaureate level and
the education loan must be a loan for education above the baccalaureate level.
Proposed law specifically prohibits the credit to a taxpayer if he, or the spouse or dependent
for whom the credit is taken, is not a resident of the state of Louisiana for the tax period for
which the credit is taken.
Applicable to tax years beginning on and after January 1, 2011.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R. S. 47:297.13)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill.
1. Increases the credit from 10% to all of the deduction on the federal return.
2. Requires the person for whom the credit is taken to be a graduate from the
baccalaureate level.
3. Requires the loan to be a loan for education above the baccalaureate level.