HLS 21RS-885 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 299
BY REPRESENTATIVE JAMES
TAX CREDITS: Increases the amount of the earned income tax credit and makes the
increased amount permanent
1 AN ACT
2To amend and reenact R.S. 47:297.8, relative to individual income tax credits; to provide for
3 the amount of the earned income tax credit; to provide for an effective date; and to
4 provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:297.8 is hereby amended and reenacted to read as follows:
7 ยง297.8. Earned income tax credit
8 A. (1) Except as provided in Paragraph (2) of this Subsection, there There
9 shall be a credit against the tax imposed by this Chapter for individuals in an amount
10 equal to three and one-half ten percent of the federal earned income tax credit for
11 which the individual is eligible for the taxable year under Section 32 of the Internal
12 Revenue Code.
13 (2) For tax years beginning on and after January 1, 2019, through December
14 31, 2025, there shall be a credit against the tax imposed by this Chapter for
15 individuals in an amount equal to five percent of the federal earned income tax credit
16 for which the individual is eligible for the taxable year under Section 32 of the
17 Internal Revenue Code.
18 B. If the credit against Louisiana income tax for resident individuals exceeds
19 the amount of such the individual's tax liability for the taxable year, then such the
20 excess tax credit shall constitute an overpayment from the current collections of the
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-885 ORIGINAL
HB NO. 299
1 taxes imposed under this Part. The right to a refund of any such overpayment shall
2 not be subject to the requirements of R.S. 47:1621(B).
3 Section 2. This Act shall become effective upon signature by the governor or, if not
4signed by the governor, upon expiration of the time for bills to become law without signature
5by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
6vetoed by the governor and subsequently approved by the legislature, this Act shall become
7effective on the day following such approval.
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)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.