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) (RE -$6,300,000 GF RV See Note)
Impact
The bill's implementation would primarily affect Louisiana income tax laws by introducing a specific credit related to education loans. The intent is to encourage higher education pursuits by easing the tax implications of loan interest payments. However, the credit's effectiveness hinges on receiving a certification of 'revenue neutrality' from the state revenue department, ensuring that the fiscal impact is balanced through incoming revenue generated by the credit's provision.
Summary
Senate Bill 177 proposes a non-refundable income tax credit for Louisiana residents who incur interest on qualified education loans for graduate-level education. The amount of the credit would equal the deduction the taxpayer rightly claims on their federal income tax return for the same tax period. This bill specifically applies to taxpayers, their spouses, or dependents who have graduated from a baccalaureate program, thus focusing on promoting higher education qualifications and alleviating financial burdens associated with graduate education.
Sentiment
The overall sentiment surrounding SB 177 appears to be supportive among those advocating for educational advancement and fiscal relief for students pursuing higher education. There's recognition of the challenges posed by student debt, especially for graduate education, underscoring a broader commitment to enhancing educational opportunities in Louisiana. However, potential skepticism may exist regarding the bill's revenue neutrality provisions and the state's fiscal health.
Contention
Notable concerns regarding SB 177 include its reliance on state evaluations to confirm that the tax credit will not adversely impact overall tax revenue. Critics may argue about the implications of state dependency on varying factors, like the economic environment and educational enrollments, which might compromise estimated projections. The bill's parameters limiting the credit to residents with graduate loans for baccalaureate-level education could also spark discussions about fairness and accessibility for various taxpayer demographics.
Grants a refundable "residential energy efficiency tax credit" for 2012 and 2013 equal to 50% of the first $25,000 of the aggregate cost of "qualifying residential energy efficient property" that is purchased and installed in the residence of those 65 and older who are income-eligible. (gov sig) (EN DECREASE GF RV See Note)