Louisiana House Bill HB530

Louisiana 2019 Regular Session

• Introduced: 3/29/19
• Refer: 3/29/19
• Refer: 4/8/19
• Report Pass: 5/20/19
• Engrossed: 5/28/19

Caption

Requires certain taxpayers claiming the earned income tax credit to provide the Dept. of Revenue with certain information regarding residency of dependents (RE NO IMPACT GF RV See Note)

Impact

If enacted, HB 530 would directly influence how the EITC is claimed within Louisiana, affecting taxpayers who require the credit based on residency qualifications of their dependents. The bill preserves the existing structure of the EITC but adds a necessary verification step. By ensuring that only eligible taxpayers can claim the credit, the state aims to maintain fiscal responsibility and eliminate improper claims, likely leading to a modest reduction in erroneous credits and thus preserving state revenue.

Summary

House Bill 530 aims to amend the requirements for claiming the earned income tax credit (EITC) in Louisiana by imposing new residency stipulations for qualifying dependents. Specifically, the bill mandates that taxpayers must affirm that their qualifying child has been physically present in the United States for at least 180 days during the taxable year or for at least 50% of the year if born in that same year. These changes are intended to enhance oversight of tax credits to ensure eligibility aligns with residency requirements, potentially preventing fraudulent claims.

Sentiment

The sentiment surrounding HB 530 reflects a general consensus recognizing the need for accountability in tax credit claims. Supporters of the bill laud it as a necessary measure to uphold the integrity of the tax system, illustrating a push towards responsible fiscal governance. However, critics argue that adding requirements may complicate the process for low-income families who already face hardships. They express concerns that these additional requirements could deter valid claims and negatively affect vulnerable populations relying on these credits for financial support.

Contention

Notable points of contention include concerns raised by some legislators regarding the potential impact on low-income families who may struggle to provide the necessary documentation to comply with the new requirements. Additionally, the exemption for U.S. armed services members stationed outside Louisiana has sparked discussions about fairness and equal treatment in claiming tax credits. This aspect of the bill reflects a compromise, balancing the need for residency verification with recognition of the unique circumstances faced by service members.