Prohibits the $25 credit for educational expenses for each child attending nonpublic elementary and secondary school if the tax deduction for payment of tuition and fees is taken and establishes the Student Assessment for a Valuable Education (SAVE) Credit Program. (gov sig) (EN -$347,700,000 GF RV See Note)
SB93 amends existing legislation related to educational tax credits by prohibiting the issuance of a $25 credit for educational expenses under certain circumstances, specifically when a taxpayer already deducts tuition and fees for nonpublic elementary and secondary schools. The introduction of the SAVE program is perceived as a step toward incentivizing public higher education enrollment while also streamlining educational funding across tax categories. The bill is expected to enhance financial support for students attending public colleges and universities, making higher education more accessible in the state.
Senate Bill 93 introduces the Student Assessment for a Valuable Education (SAVE) Credit Program, aimed at providing tax credits to students enrolling in public institutions of higher education in Louisiana. Under this bill, students will receive a credit against several types of taxes, including individual income, sales and use, and gasoline taxes. The proposed credit amount is tied to the average tax liability of Louisiana households, with a cap on the total annual credits issued not exceeding $350 million. The program is designed to be implemented starting from July 1, 2015, emphasizing educational support while modifying existing tax provisions.
The sentiment surrounding SB93 appears to lean positive among its proponents, who view the SAVE Credit Program as a beneficial way to encourage educational participation and relieve some financial burdens on students and their families. Advocates argue that tying tax credits to educational enrollment will promote public institutions over nonpublic options, fostering a focus on public education. However, there are concerns regarding the program's financial implications and the potential restriction of previously available tax credits for certain demographics.
Notably, some points of contention arise regarding the limitations this bill places on tax credits for educational expenses. Opponents may argue that it unfairly penalizes students or families who seek nonpublic education options. Additionally, the cap on available credits per fiscal year introduces a limitation that could impact the overall effectiveness of the SAVE program, leading to discussions on the allocation of educational funding and the adequate support of Louisiana's public higher education system. The discussion also touched upon the insufficient accommodations for families who may rely entirely on private educational institutions.