HLS 21RS-602 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 424
BY REPRESENTATIVE MCFARLAND
TAX/INCOME TAX: Establishes an individual income tax deduction for taxpayers who
adopt a child from foster care
1 AN ACT
2To enact R.S. 47:293(9)(a)(xx) and 297.16, relative to individual income tax; to provide for
3 an individual income tax deduction for the adoption of a child or youth from foster
4 care; to provide for the amount of the deduction; to provide for limitations and
5 requirements; to authorize the promulgation of rules; to provide for applicability; to
6 provide for an effective date; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:293(9)(a)(xx) and 297.16 are hereby enacted to read as follows:
9 §293. Definitions
10 The following definitions shall apply throughout this Part, unless the context
11 requires otherwise:
12 * * *
13 (9)(a) "Tax table income", for resident individuals, means adjusted gross
14 income plus interest on obligations of a state or political subdivision thereof, other
15 than Louisiana and its municipalities, title to which obligations vested with the
16 resident individual on or subsequent to January 1, 1980, and less:
17 * * *
18 (xx) The deduction for adopting a child or youth from foster care as provided
19 in R.S. 47:297.16.
20 * * *
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-602 ORIGINAL
HB NO. 424
1 §297.16. Tax deduction; adoption from foster care
2 A.(1) There shall be allowed a deduction from tax table income for a
3 taxpayer who adopts a child who is in foster care, as defined in Children's Code
4 Article 603, or a youth receiving extended foster care services pursuant to the
5 Extended Foster Care Program Act. The amount of the deduction authorized by this
6 Section shall be equal to five thousand dollars and shall be applicable in the year the
7 adoption becomes final. The amount of the deduction authorized by this Section
8 shall not exceed the total taxable income of the taxpayer claiming the deduction.
9 (2) The deduction authorized pursuant to the provisions of this Section shall
10 be in lieu of the dependency deduction authorized in R.S. 47:294.
11 B. The taxpayer claiming the deduction authorized pursuant to the provisions
12 of this Section shall maintain all records necessary to verify the adoption and if
13 requested, shall provide the records to the Department of Revenue when filing the
14 taxpayer's tax return.
15 C. The secretary of the Department of Revenue may promulgate rules in
16 accordance with the Administrative Procedure Act to implement the provisions of
17 this Section, including rules related to the submission of documentation when
18 claiming the deduction.
19 Section 2. The provisions of this Act shall be applicable to adoptions finalized on
20or after January 1, 2022.
21 Section 3. This Act shall become effective on January 1, 2022.
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 424 Original 2021 Regular Session McFarland
Abstract: Establishes an income tax deduction equal to $5,000 for a taxpayer who adopts
a child who is in foster care or a youth receiving extended foster care services.
Proposed law provides for the establishment of an income tax deduction for a taxpayer who
adopts a child who is in foster care, as defined in present law (Children's Code Art. 603), or
a youth receiving extended foster care services pursuant to present law (R.S. 46:288.1 et
seq.—Extended Foster Care Program Act). The amount of the deduction shall equal $5,000
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-602 ORIGINAL
HB NO. 424
and shall be applicable in the year the adoption of the child becomes final. Prohibits the
amount of the deduction from exceeding the total taxable income of the taxpayer claiming
the deduction.
Proposed law provides that the deduction established in proposed law shall be in lieu of the
dependency deduction authorized in present law (R.S. 47:294).
Proposed law requires the taxpayer claiming the deduction to maintain all records necessary
to verify the adoption and if requested, to provide the records to the Dept. of Revenue when
filing the taxpayer's tax return.
Proposed law authorizes the promulgation of rules in accordance with present law
(Administrative Procedure Act) to implement the provisions of proposed law, including rules
related to the submission of documentation when claiming the deduction.
Present law defines "tax table income" for resident individuals as adjusted gross income plus
interest on certain state or political subdivision obligations less items such as gratuitous
grants, loans, or other disaster benefits included in federal adjusted gross income, federal
income tax liability, amounts deposited into medical or educational savings accounts, and
excess personal exemptions and deductions.
Proposed law retains present law but adds to the list of income not included in "tax table
income" the deduction for adopting a foster child.
Proposed law is applicable to adoptions finalized on or after Jan. 1, 2022.
Effective Jan. 1, 2022.
(Adds R.S. 47:293(9)(a)(xx) and 297.16)
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.