HLS 21RS-547 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 592
BY REPRESENTATIVE HILFERTY
TAX/INCOME TAX: Establishes an income tax deduction for certain early childhood care
and education expenses
1 AN ACT
2To enact R.S. 47:297.16, relative to individual income tax; to provide for an individual
3 income tax deduction for certain early childhood care and education expenses; to
4 provide for the amount of the deduction; to provide for limitations and requirements;
5 to authorize the promulgation of rules; to provide for applicability; to provide for an
6 effective date; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:297.16 is hereby enacted to read as follows:
9 ยง297.16. Tax deduction; early childhood care and education expenses
10 A.(1) There shall be allowed a deduction from tax table income for early
11 childhood care and education expenses paid during the taxable year by a taxpayer for
12 the care or education of a child from birth to four years of age, if the child qualifies
13 as a dependency exemption on the taxpayer's Louisiana income tax return for the
14 taxable year or the prior taxable year. The deduction authorized by this Section shall
15 be equal to the actual amount of early childhood care and education expenses paid
16 by the taxpayer for each child or five thousand dollars per child, whichever is less.
17 (2) The amount of the deduction authorized by this Section shall not exceed
18 the total taxable income of the taxpayer claiming the deduction.
19 (3) The deduction authorized pursuant to the provisions of this Section shall
20 be in lieu of the credits authorized pursuant to the provisions R.S. 47:297.4 and 6104.
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CODING: Words in struck through type are deletions from existing law; words underscored
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HB NO. 592
1 B. For purposes of this Section, early childhood care and education expenses
2 shall include amounts expended for the care or education of a child provided by a
3 person other than a parent or the primary caregiver with whom the child resides
4 including amounts paid to licensed childcare facilities, in-home care providers, and
5 preschool and pre-kindergarten providers.
6 C. The taxpayer claiming the deduction authorized pursuant to the provisions
7 of this Section shall maintain all records necessary to verify the amount of early
8 childhood care and education expenses claimed and if requested, shall provide the
9 records to the Department of Revenue when filing the taxpayer's tax return.
10 D. The secretary of the Department of Revenue may promulgate rules in
11 accordance with the Administrative Procedure Act to implement the provisions of
12 this Section including rules related to the submission of documentation when
13 claiming the deduction.
14 Section 2. The provisions of this Act shall be applicable to amounts paid on or after
15January 1, 2022.
16 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 592 Original 2021 Regular Session Hilferty
Abstract: Authorizes an income tax deduction equal to $5,000 per child, per year, for early
childhood care and education expenses paid for the care or education of a child from
birth to four years of age.
Proposed law authorizes an individual income tax deduction for early childhood care and
education expenses paid during the taxable year by a taxpayer for the care or education of
a child from birth to four years of age, if the child qualifies as a dependency exemption on
the taxpayer's La. income tax return for the taxable year or the prior taxable year. The
amount of the deduction shall equal the actual amount of early childhood care and education
expenses paid by the taxpayer for each child or $5,000 per child, whichever is less.
Proposed law prohibits the amount of the deduction from exceeding the total taxable income
of the taxpayer and requires the deduction to be in lieu of tax credits authorized in present
law for certain childcare expenses and school readiness childcare expenses.
Proposed law defines early childhood care and education expenses to include amounts
expended for the care or education of a child provided by a person other than a parent or the
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-547 ORIGINAL
HB NO. 592
primary caregiver with whom the child resides including amounts paid to licensed childcare
facilities, in-home care providers, and preschool and pre-kindergarten providers.
Proposed law requires the taxpayer claiming the deduction to maintain all records necessary
to verify the amount of expenses claimed and if requested, to provide the records to the Dept.
of Revenue when filing their 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.
Applicable to amounts paid on or after Jan. 1, 2022.
Effective Jan. 1, 2022.
(Adds R.S. 47:297.16)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.