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 595 Original 2019 Regular Session Wright
Abstract: Authorizes a nonrefundable income tax credit for donations a taxpayer makes to a foster
care organization equal to the actual amount of the donation used by the organization to
provide services to a qualified individual, or $100,000, whichever is less.
Proposed law authorizes a nonrefundable income tax credit for donations a taxpayer makes during
a taxable year to qualifying foster care charitable organizations, hereinafter "foster care
organizations". In order to qualify for the credit, the donation shall be made by a taxpayer who is
required to file a La. income tax return.
Proposed law provides that the amount of the credit shall be equal to the amount of the donation used
by the foster care organization to provide services to a qualified individual, or $100,000, whichever
is less. The total amount of credits granted pursuant to proposed law shall not exceed $1,000,000
per calendar year.
Proposed law authorizes a taxpayer to carry forward the amount of the tax credit not used as an offset
against the taxpayer's tax liability as a credit against subsequent income tax liabilities for a period
not to exceed five taxable years.
Proposed law defines a "qualified individual" as a child in a foster care placement program
established by the Dept. of Children and Family Services (DCFS) or a child at significant risk of
entering a foster care placement program established by the DCFS.
Proposed law defines a "foster care organization" as a charitable organization exempt from federal
income tax under federal law that, each operating year provides services to at least 100 qualified
individuals in this state and spends at least 50% of its budget on services to qualified individuals in
this state. Further provides that a foster care organization that does not spend at least 50% of its
overall budget in La. is to be considered a foster care organization for purposes of proposed law if
the organization spends at least 50% of its state budget on services to qualified individuals in La. and
the organization certifies to the Dept. of Revenue (DOR) that 100% of the donation from La.
taxpayers will be spent on services for La. residents.
Proposed law defines "services" as cash assistance, medical care, child care, food, clothing, shelter,
job placement, and job-training services or any other assistance reasonably necessary to meet
immediate basic needs that are provided for a qualified individual and used in La.
Proposed law requires the foster care organization to issue a receipt to a taxpayer indicating the actual amount of the taxpayer's donation that is used by the organization to provide services to a
qualified individual and to annually certify to DOR that the foster care organization meets all of the
requirements of proposed law.
Proposed law requires DOR to provide a standardized format for a receipt to be issued by the foster
care organization to the taxpayer. Further requires DOR to require a taxpayer to provide a copy of
the receipt when claiming the credit.
Proposed law authorizes DOR to promulgate rules and regulations in accordance with the APA to
implement the provisions of proposed law.
Effective Jan. 1, 2020 and applicable to donations made by a taxpayer to a qualifying foster care
charitable organization on and after Jan. 1, 2020.
(Adds R.S. 47:6040)