HLS 15RS-520 REENGROSSED
2015 Regular Session
HOUSE BILL NO. 508
BY REPRESENTATIVES FOIL, BARROW, BURFORD, HENRY BURNS, CARTER,
CONNICK, COX, HAZEL, HOFFMANN, HUNTER, IVEY, MIKE JOHNSON,
ORTEGO, ROBIDEAUX, SMITH, ST. GERMAIN, AND WILLMOTT
TAX/INCOME TAX: Authorizes an income tax deduction for taxpayers who employ
certain qualified disabled individuals
1 AN ACT
2To enact R.S. 47:297.13, relative to income taxation; to provide relative to individual and
3 corporation income tax deductions; to authorize an income tax deduction for
4 taxpayers who employ certain qualified disabled individuals; to provide for certain
5 definitions; to provide for certain requirements and limitations; to provide for an
6 effective date; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:297.13 is hereby enacted to read as follows:
9 ยง297.13. Tax deduction; employment of certain qualified disabled individuals;
10 requirements; limitations
11 A.(1) There shall be allowed a deduction from income taxes imposed by this
12 Chapter for each taxpayer who provides continuous employment to a qualified
13 disabled individual. A taxpayer shall be eligible to claim the deduction provided for
14 in this Section after employing a qualified individual with a disability for four
15 continuous months for no less than an average of twenty hours a week at a rate
16 comparable to and in the same setting as other employees of the taxpayer performing
17 the same or similar task.
18 (2) For purposes of this Section, the term "qualified individual with a
19 disability" shall mean the following:
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1 (a) A person with a severe, chronic disability that is attributable to an
2 intellectual or physical impairment or combination of intellectual and physical
3 impairments that is manifested before the person reaches the age of twenty-two and
4 is likely to continue indefinitely which results in substantial functional limitations
5 in three of more major areas of life activity, including but not limited to self-care,
6 receptive and expressive language, learning, mobility, self-direction, capacity for
7 independent living, and economic self-sufficiency. A qualified individual with a
8 disability, as defined in this Subparagraph, shall include an individual who has been
9 determined to be eligible for and is receiving services through the office for citizens
10 with developmental disabilities. A qualified individual with a disability shall also
11 include an individual who receives facility-based vocational or pre-vocational
12 services through the Home and Community Based Waiver programs, including the
13 New Opportunities Waiver, Supports Waiver, and Residential Options Waiver.
14 (b) An individual with a service-connected disability rating of fifty percent
15 or more as designated by the United States Department of Veterans Affairs. A
16 qualified individual with a service-connected disability, as defined in this
17 Subparagraph, shall include an individual who receives facility-based vocational or
18 pre-vocational services through the Home and Community Based Waiver programs,
19 including the New Opportunities Waiver, Supports Waiver, and Residential Supports
20 Waiver.
21 B. The amount of the income tax deduction shall be equal to fifty percent of
22 the gross wages paid to a qualified disabled individual during the individual's first
23 four continuous months of employment and thirty percent of the gross wages paid
24 to the qualified individual with a disability during each subsequent continuous month
25 of employment. The taxpayer shall be entitled to the deduction for each qualified
26 individual with a disability the taxpayer employs each taxable year; however, there
27 shall be no more than one hundred employees for which the deduction is allowed
28 program wide, fifty percent of which shall be qualified individuals with a disability
29 as defined in this Section and fifty percent of which shall be an eligible individual
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1 with a service-connected disability. The secretary of the Department of Revenue, in
2 consultation with the Department of Health and Hospitals and the Office of Veterans
3 Affairs, shall promulgate rules and regulations pursuant to the Administrative
4 Procedure Act for the purpose of implementing the provisions of this Section. The
5 rules and regulations may include provisions requiring taxpayers to submit
6 documentation with their returns or to specifically retain records that will enable the
7 department to determine the taxpayer's eligibility for and amount of the tax
8 deduction claimed under this Section. To the extent practicable, the credits shall be
9 apportioned equitably to employers who are geographically representative of all
10 portions of the state.
11 C. The taxpayer claiming this deduction shall maintain all records necessary
12 to verify that the employer and the qualified individual with a disability for which
13 the taxpayer is claiming the deduction meets all of the requirements as provided for
14 in this Section.
15 D. The department, in consultation with the Department of Health and
16 Hospitals, shall monitor the implementation and operation of the provisions of this
17 Section. The department, in consultation with the Department of Health and
18 Hospitals, shall also provide a written evaluation of the program and its effectiveness
19 in generating employment opportunities for individuals with intellectual or
20 developmental disabilities or individuals with service-connected disabilities, as well
21 as whether there was any savings in Medicaid waiver expenditures.
22 Section 2. This Act shall become effective upon signature by the governor or, if not
23signed by the governor, upon expiration of the time for bills to become law without signature
24by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
25vetoed by the governor and subsequently approved by the legislature, this Act shall become
26effective on the day following such approval.
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 508 Reengrossed 2015 Regular Session Foil
Abstract: Authorizes an income tax deduction for taxpayers who employ qualified
individuals with disabilities.
Proposed law authorizes an income tax deduction for each taxpayer who provides continuous
employment to a qualified individual with a disability. A taxpayer is eligible to claim the
deduction after employing a qualified individual with a disability for four continuous months
for no less than an average of 20 hours a week at a rate comparable to and in the same setting
as other employees performing the same or similar task.
Proposed law limits the number of qualified individuals for which the deduction may be
claimed to 100 and directs the secretary of the Dept. of Revenue, in consultation with the
Dept. of Health and Hospitals and the Office of Veterans Affairs, to promulgate rules and
regulations pursuant to the A.P.A. for the purpose of implementing the limitation of the
availability of the deduction.
Proposed law defines a "qualified individual with a disability" as either of the following:
(1)A person with a severe, chronic disability attributable to an intellectual or physical
impairment or combination of these impairments that is manifested before the age
of 22 and is likely to continue indefinitely which results in substantial functional
limitations. A qualified individual with a disability shall include individuals who
have been determined to be eligible for services through the Office for Citizens with
developmental disabilities or the Home and Community Based Waiver programs and
is receiving facility-based vocational or pre-vocational services through the Home
and Community Based Waiver programs.
(2)An individual who has a service-connected disability rating of 50% or more as
designated by the U.S. Dept. of Veterans Affairs. A qualified individual with a
service-connected disability shall include individuals who receive facility-based
vocational or pre-vocational services through the Home and Community Based
Waiver programs.
Proposed law provides that the amount of the deduction is equal to 50% of the gross wages
paid to a qualified disabled individual during the first four continuous months of
employment and 30% of the gross wages paid to the individual during each subsequent
continuous month of employment. Further provides that the taxpayer is entitled to the
deduction for each qualified disabled individual he employs each taxable year.
Proposed law requires the taxpayer claiming the deduction to maintain all records necessary
to verify that the employer and the qualified disabled individual for which the taxpayer is
claiming the deduction meets all of the requirements as provided for in proposed law.
Proposed law requires, to the extent practicable, that the credits be apportioned equitably to
employers who are geographically representative of all portions of the state.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:297.13)
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Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Require that the qualified individual with a disability be paid at a rate
comparable to and in the same setting as other employees performing the same
or similar task for the employer to be eligible to receive the income tax
deduction.
2. Clarify which programs an individual may receive services through to be
considered a qualified individual for purposes of the deduction.
The House Floor Amendments to the engrossed bill:
1. Add provision that a qualified individual with a service-connected disability shall
include an individual who receives facility-based vocational or pre-vocational
services through the Home and Community Based Waiver programs, including
the New Opportunities Waiver, Supports Waiver, and Residential Support
Waiver.
2. Add provision that requires, to the extent practicable, that the credits in proposed
law be apportioned equitably to employers who are geographically representative
of all portions of the state.
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