RÉSUMÉ DIGEST
ACT 117 (HB 508) 2015 Regular Session Foil
New 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.
New law limits the number of qualified individuals for which the deduction may be claimed
to 100 and directs the Dept. of Revenue (DOR) and the Dept. of Health and Hospitals (DHH)
to approve applications claiming the deduction. New law authorizes rule promulgation and
regulations pursuant to the Administrative Procedures Act by DOR and DHH, in consultation
with the Dept. of Veterans Affairs, and requires DHH to maintain records indicating the 100
employees eligible for the deduction.
New 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.
New law provides that the amount of the deduction shall equal 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. New law further provides that the taxpayer is entitled to the deduction for each
qualified disabled individual he employs each taxable year.
New 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 new law.
New law requires, to the extent practicable, that the credits be apportioned equitably to
employers who are geographically representative of all portions of the state.
Existing law provides for the confidentiality of tax records and files. Further provides for
exceptions and authorizes the release of information by DOR in limited circumstances.
New law authorizes DOR to share information with DHH to monitor and implement new
law.
Effective upon signature of governor (June 19, 2015).
(Adds R.S. 47:297.13 and 1508(B)(37))
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