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 299 Original 2021 Regular Session James
Abstract: Increases the amount of the earned income tax credit from 5% to 10% and makes the
10% amount permanent.
Present law provides for an individual income tax credit based on the taxpayer's federal earned
income tax credit authorized under Section 32 of the Internal Revenue Code. The amount of the
credit is 5% of the amount of the taxpayer's federal earned income tax credit through Dec. 31, 2025.
Beginning Jan. 1, 2026, the amount of the credit is 3.5% of the amount of the taxpayer's federal
earned income tax credit.
Proposed law increases the amount of the state credit from 5% to 10% of the amount of the
taxpayer's federal tax credit and eliminates the mandatory decrease in the amount of the credit in
2026, thereby making the 10% permanent.
Present law provides that if the credit amount exceeds the taxpayer's tax liability for the taxable year,
the excess credit amount shall constitute an overpayment and shall be refunded to the taxpayer from
the current collections of the taxes imposed under present law.
Proposed law retains present law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:297.8)