RÉSUMÉ DIGEST
Act 140 (SB 93) 2015 Regular Session Adley
Prior law granted a maximum credit of $25 for educational expenses incurred for each child
attending kindergarten, elementary, or secondary school.
New law disallows the credit if the deduction for the payment of tuition and fees for
nonpublic elementary and secondary school tuition is taken for the child as provided for in
R.S. 47:297.10.
New law establishes the Student Assessment for a Valuable Education (SAVE) Credit
Program.
New law requires the Board of Regents (the board) to implement a Student Assessment for
a Valuable Education (SAVE) Credit Program for each student enrolling at a public
institution of higher education. Each student assessed shall be granted a SAVE credit against
income, sales and use, gasoline and special fuel taxes equal to the individual amount of a
SAVE assessment. The amount of each credit must not exceed the average household tax
liability in Louisiana for the total of such taxes as determined and published by the
Department of Revenue (DOR) no later than June 30th of each fiscal year. The aggregate
amount of credits cannot exceed $350 million.
The SAVE credit is a transferable, nonrefundable credit against the tax liability set forth
above of a student, or his parent or legal guardian, which must be transferred to the board and
used solely as set forth below for each student enrolled in a public institution of higher
education on and after July 1, 2015.
The DOR is to distribute student eligibility determination criteria to the board to be used for
requesting the credit for student assessments from the department. Student eligibility is to
be based on the tax liability set forth above paid to the state by all of the students and their
parents or legal guardians in the prior year as determined by the DOR.
No later than June 30th of each fiscal year, the board must certify to the department the total
headcount enrollment at public institutions of higher education in the previous fall. The
department then must determine the total amount of the credit and must transfer from the
current collections of taxes that amount to the treasurer. Upon receipt of the funds, the
treasurer is authorized and directed to transfer or deposit the funds into the Higher Education
Initiatives Fund in R.S. 17:3129.6. The secretary of the department and the treasurer must
report such action to the commissioner of administration and the Joint Legislative Committee
on the Budget. In no event can the credit or assessment exceed the amount appropriated by
the legislature from the Higher Education Initiatives Fund each fiscal year. For Fiscal Year
2015-2016, the total allowable amount available for transfer shall be designated in the
supplementary section of Schedule 19-671 Board of Regents in the Act that originated as
HB1 of the 2015 Regular Session. The legislature is required to determine the total allowable
amount available for transfer for Fiscal Year 2016-2017 and thereafter.
New law requires the Board of Regents to distribute all funds appropriated from the Higher
Education Initiatives Fund derived from the SAVE Credit program pursuant to its formula
for the equitable distribution of funds to public institutions of higher education.
New law provides that no student or student's parent or legal guardian shall be required to
pay an assessment that is not offset by a SAVE Credit.
New law provides that the tax credit registry is not applicable to the new law.
New law is null and void, and of no effect on and after July 1, 2020.
Applicable to tax years beginning on and after January 1, 2015.
Effective upon signature of the governor (June 19, 2015).
(Amends R.S. 47:297(D)(1); adds R.S. 47:6039)