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 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)