HLS 19RS-95 REENGROSSED
2019 Regular Session
HOUSE BILL NO. 592
BY REPRESENTATIVE FOIL
TAX/INCOME TAX: Excludes amounts deposited into certain education savings accounts
for tuition expenses for elementary and secondary schools from state income taxes
1 AN ACT
2To amend and reenact R.S. 17:3100.5(A)(1) and to enact R.S. 47:293(9)(a)(xviii),
3 297.10(C), and 297.12(C), relative to the Louisiana Student Tuition Assistance and
4 Revenue Trust Kindergarten Through Grade Twelve Program; to provide relative to
5 education savings accounts; to provide certain definitions; to provide relative to
6 earnings enhancements; to provide for applicability; to provide for an effective date;
7 and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 17:3100.5(A)(1) is hereby amended and reenacted to read as follows:
10 §3100.5. Education savings accounts; types, use, limitations, and disclosures
11 A.(1)(a) The authority may enter into an account owner's agreement with any
12 person who qualifies pursuant to R.S. 17:3100.6(A) for the creation of an education
13 savings account on behalf of a beneficiary. When the number of available
14 agreements is limited, preference shall be given to the establishment of account
15 owner agreements with resident account owners who are establishing accounts for
16 resident beneficiaries.
17 (b) For tax years beginning on and after January 1, 2020, amounts which an
18 account owner deposits into an education savings account shall be exempt from
19 inclusion in the account owner's taxable income for the purposes of state income tax
20 up to a maximum of two thousand four hundred dollars per account owned per
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1 taxable year for account owners filing single returns and up to a maximum of four
2 thousand eight hundred dollars per beneficiary per taxable year for account owners
3 filing joint returns, as provided in R.S. 47:293(9)(a)(xviii). If an account owner
4 deposits less than the maximum two thousand four hundred dollars per year in an
5 owned account and files a single return or if married account owners deposit less
6 than the maximum of four thousand eight hundred dollars per year in an account or
7 accounts for a beneficiary and file a joint return, the difference between the total
8 deposits and two thousand four hundred dollars or four thousand eight hundred
9 dollars, respectively, shall roll over to subsequent years and shall be exempt from
10 inclusion in the account owner's taxable income for the purposes of state income tax
11 in addition to the two thousand four hundred dollars or four thousand eight hundred
12 dollars in the year actually deposited, as provided in R.S. 47:293(9)(a)(xviii).
13 (c) The deduction provided for in Subparagraph (b) of this Paragraph shall
14 not be allowed for any deposits that are withdrawn within the same taxable year as
15 the deposit.
16 * * *
17 Section 2. R.S. 47:293(9)(a)(xviii), 297.10(C), and 297.12(C) are hereby enacted to
18read as follows:
19 §293. Definitions
20 The following definitions shall apply throughout this Part, unless the context
21 requires otherwise:
22 * * *
23 (9)(a) "Tax table income", for resident individuals, means adjusted gross
24 income plus interest on obligations of a state or political subdivision thereof, other
25 than Louisiana and its municipalities, title to which obligations vested with the
26 resident individual on or subsequent to January 1, 1980, and less:
27 * * *
28 (xviii) For tax years beginning on and after January 1, 2020, the amount
29 deposited in an education savings account as provided in R.S. 17:3100.5(A)(1)(b)
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1 and any interest accrued thereon; however, any deposit plus interest withdrawn from
2 an education savings account for purposes other than paying qualified education
3 expenses, as defined in R.S. 17:3100.2 shall be included in tax table income.
4 * * *
5 §297.10. Tax deduction; elementary and secondary school tuition
6 * * *
7 C. Disbursements from the Louisiana Student Tuition Assistance and
8 Revenue Trust Kindergarten through Grade Twelve Program which are entitled to
9 the deduction under R.S. 17:3100.5 and which are used to pay tuition and fees for a
10 student's enrollment in a nonpublic elementary or secondary school or to any public
11 elementary or secondary laboratory school operated by a public college or university
12 shall not be eligible for the deduction authorized under this Section.
13 * * *
14 §297.12. Tax deduction; fees and other educational expenses for a quality public
15 education
16 * * *
17 C. Disbursements from the Louisiana Student Tuition Assistance and
18 Revenue Trust Kindergarten through Grade Twelve Program which are entitled to
19 the deduction under R.S. 17:3100.5 and which are used to pay costs associated with
20 a student's enrollment in a public elementary or secondary school in order to ensure
21 a quality education shall not be eligible for the deduction under this Section.
22 * * *
23 Section 3. The provisions of this Act shall be applicable to tax years beginning on
24and after January 1, 2020.
25 Section 4. This Act shall become effective on January 1, 2020.
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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 592 Reengrossed 2019 Regular Session Foil
Abstract: Excludes amounts deposited into education savings accounts for tuition expenses
at elementary and secondary schools under the START K12 Program from state
income tax.
Present law provides for the La. Student Tuition Assistance and Revenue Trust Kindergarten
Through Grade Twelve (START K12) Program, an education savings program for certain
expenses associated with enrolling in grades kindergarten through 12. The START K12
Program is similar to the La. Student Tuition Assistance and Revenue Trust (START)
Program, except the former is for certain expenses associated with an elementary or
secondary school and the latter is for certain expenses associated with an institution of
postsecondary education.
Present law excludes a portion of annual deposits from a START Program account owner's
state tax table income for up to $2,400 for single filers and $4,800 for joint filers, per
account. If less than the maximum annual deposits are deposited in any year, then the
difference between the total deposit and $2,400 for single filers or $4,800 for joint filers
shall roll over to subsequent years and shall be exempt from inclusion in the account owner's
state taxable income.
Proposed law retains present law and excludes annual deposits to a START K12 Program
from the account owner's state income tax. Proposed law limits the exclusion to $2,400 for
single filers and $4,800 for joint filers per account. Proposed law prohibits the exclusion
from applying to deposits withdrawn within the same taxable year as the deposit.
Present law authorizes a tax deduction for costs associated with enrollment in an elementary
or secondary school. Proposed law prohibits an account owner from claiming both the tax
exclusion for the START K12 Program and the tax deduction for costs associated with
enrollment in an elementary and secondary school within the same taxable year.
Effective Jan. 1, 2020.
(Amends R.S. 17:3100.5(A)(1); Adds R.S. 47:293(9)(a)(xviii), 297.10(C), and 297.12(C))
Summary of Amendments Adopted by House
The House Floor Amendments to the original bill:
1. Remove the tax exclusion to a START K12 Program account owner's state tax
table income on annual deposits up to $2,400 for single filers and $4,800 for joint
filers.
The House Floor Amendments to the engrossed bill:
1. Change proposed law from authorizing the credit of earning enhancements to
START K12 education accounts to exempting START K12 Program account
owner's annual deposits up to $2,400 for single filers and $4,800 for joint filers
from inclusion in the account owner's state taxable income.
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2. Prohibit an account owner from claiming both the START K12 Program tax
exemption and the tax deduction for tuition and expenses associated with
enrollment in an elementary or secondary school within the same taxable year.
3. Add applicability of proposed law to tax gains beginning on and after Jan. 1,
2020.
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