Louisiana House Bill HB188

Louisiana 2015 Regular Session

• Introduced: 3/27/15
• Refer: 3/27/15
• Refer: 4/13/15

Caption

Excludes certain deposits in special savings accounts for persons with disabilities known as ABLE Accounts from tax table income for purposes of calculating income tax (OR SEE FISC NOTE GF RV)

Impact

The passage of HB 188 could encourage individuals with disabilities and their families to utilize ABLE Accounts more fully, as the tax exemption may enhance the financial benefits of saving through these accounts. By excluding these deposits from taxable income, beneficiaries can save more money for their qualified expenses without facing disincentives related to their tax obligations. This change reflects a broader effort to promote financial independence and support for individuals with disabilities within the state’s legislative framework.

Summary

House Bill 188 introduces a significant modification to Louisiana's tax laws by creating an exemption for certain contributions made to ABLE (Achieving a Better Life Experience) Accounts. These accounts are designed to assist individuals with disabilities in saving private funds to cover qualified expenses without jeopardizing their eligibility for state and federal programs. The bill specifies that amounts deposited in these special savings accounts will not be included in the calculation of tax table income for individual income tax purposes, thereby potentially reducing tax liabilities for account holders. The effective date for this change is set for January 1, 2016.

Sentiment

Overall, the sentiment surrounding HB 188 appears to be positive, particularly among advocates for individuals with disabilities and their families. Supporters of the bill argue that it provides necessary financial support to those who often face additional economic challenges. The focus on enhancing the financial stability of individuals with disabilities is seen as a progressive step towards inclusivity. There may be some concerns from those who advocate for a broader tax base or who are wary about the potential long-term fiscal implications of tax exemptions.

Contention

While there may not be widespread contention surrounding HB 188, some discussion around the bill could focus on the potential impact of additional tax exemptions on state revenue. Critics may raise questions about how these exemptions could affect budget allocations for other essential services. Furthermore, a dialogue on the administrative aspects of managing ABLE Accounts might arise, particularly regarding how the state can ensure compliance and proper use of the funds within these accounts.