Louisiana House Bill HB277

Louisiana 2015 Regular Session

• Introduced: 4/1/15
• Refer: 4/1/15
• Refer: 4/13/15

Caption

Repeals the individual income tax credit for educational expenses for students in kindergarten through twelfth grade

Impact

The repeal of this tax credit will have immediate financial implications for families with children in K-12 education. By removing this $25 per child tax credit, families might face increased tax burdens, particularly those who rely on this financial support to alleviate educational costs. The bill's effective date is set to be January 1, 2015, meaning that the repeal will apply to all tax years beginning from this date onward, thereby impacting all qualifying families in the state.

Summary

House Bill 277 aims to repeal the individual income tax credit for educational expenses incurred by families for children attending kindergarten through twelfth grade. Currently, the existing law provides a tax credit of $25 per child for educational expenses if the child qualifies as a dependency exemption on the taxpayer's Louisiana income tax return. By eliminating this tax credit, the bill seeks to adjust the financial support system for educational expenses in the state.

Sentiment

The sentiment surrounding HB 277 appears to be mixed. Supporters of the repeal may argue that it is a step toward broader tax reform or that the resources could be reallocated to other educational programs. However, there are concerns from educational advocacy groups and concerned citizens that eliminating such credits could disproportionately affect low-income families, who often benefit the most from this form of financial assistance and may struggle more with educational expenses, thereby negatively impacting their children's educational opportunities.

Contention

Key points of contention regarding HB 277 include the potential loss of financial support for families and the broader implications for educational funding in the state. Critics argue that repealing the tax credit might lead to decreased accessibility to education for low-income families, who already face hurdles in affording educational materials and expenses. The debate over this bill reflects ongoing discussions about the state's commitment to education funding and whether implementing cuts to tax credits is a viable solution to larger budgetary challenges.