Deletes requirement that a student be listed as a dependent for a taxpayer to receive the private school education income tax deduction
Impact
By removing the dependency requirement, the bill aims to broaden the eligibility criteria for tax deductions related to educational expenses. This could potentially benefit a wider range of families who have enrolled their children in nonpublic education institutions, ultimately encouraging increased enrollment in such schools. The maximum deduction of $5,000 per child per year will still apply, but the bill intends to allow more families to access this financial relief regardless of their dependency status.
Summary
House Bill 670 seeks to amend existing state taxation laws by eliminating the requirement for a student to be listed as a dependent on a taxpayer's income tax return in order to qualify for the private school education income tax deduction. This change would make it easier for taxpayers to claim deductions for tuition and fees paid for their children's education in nonpublic elementary and secondary schools or public laboratory schools operated by colleges or universities.
Sentiment
The sentiment surrounding HB 670 appears to be generally supportive among advocates for educational choice and private school options. Supporters argue that it aligns with the principle of allowing parents greater flexibility and autonomy in choosing educational pathways for their children, without the restrictions of dependency declarations. However, there may be concerns raised about the implications of increased tax deductions for private schooling, particularly in relation to public school funding.
Contention
One point of contention revolves around the potential financial impact on state revenues due to increased tax deductions for more families. Critics may argue that while the intent is to support educational choice, it could inadvertently weaken public school funding by incentivizing parents to opt for private education over public options. Additionally, the change may prompt discussions on equity in access to quality education, as families with different income levels might utilize the deductions in various ways.
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)
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)
Provides relative to income tax deduction for certain educational expenses incurred during the COVID-19 pandemic (Item #26) (EN DECREASE GF RV See Note)
Reduces the rates for the tax levied on individual income tax in favor of a flat tax and eliminates all individual income tax credits, deductions, exclusions, and exemptions
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)
Provides relative to tax benefits for adoption of children from foster care and donations to foster care charitable organizations (EN NO IMPACT 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)