Excludes qualified deposits in ABLE Accounts from "tax table income" for purposes of calculating individual income tax (EG SEE FISC NOTE GF RV See Note)
The bill, which takes effect on January 1, 2016, represents a significant shift in the treatment of ABLE Accounts within Louisiana's tax structure. By classifying deposits made into these accounts as non-taxable income, the state is fostering an environment where individuals with disabilities can build financial security without the fear of punitive tax consequences. Supporters argue that this change will help alleviate poverty among disabled individuals by encouraging them to save money for their futures.
House Bill 234 aims to amend the calculation of individual income tax in Louisiana by excluding qualified deposits made into ABLE Accounts from what is considered 'tax table income.' ABLE Accounts are special savings accounts that enable individuals with disabilities to save private funds for qualified expenses without jeopardizing their eligibility for government benefits. This legislation is intended to encourage savings among individuals with disabilities and their families by reducing the tax implications of such savings.
General sentiment surrounding HB 234 has been positive, particularly among advocacy groups that support individuals with disabilities. It has received broad bipartisan support, suggesting a shared commitment to improving financial opportunities for disabled persons. The bill's passage through the legislature was smooth, with a unanimous vote reflecting a strong legislative consensus on the need for supportive measures for this vulnerable population.
While the bill faced little opposition, some concerns were raised about the adequacy of the oversight of the ABLE Accounts to prevent misuse. Critics argued that without strict regulations on how funds could be used, there is a risk that the accounts might not serve their intended purpose. However, these concerns were largely overshadowed by the overall consensus on the bill's benefits for persons with disabilities.