Louisiana House Bill HB660

Louisiana 2021 Regular Session

• Introduced: 4/12/21
• Refer: 4/13/21
• Report Pass: 4/26/21

Caption

Increases the amount of the earned income tax credit for certain taxpayers for a specific period of time (EG -$1,400,000 GF RV See Note)

Impact

The legislation is poised to enhance the financial situations of young adults and senior citizens who fall under the eligible categories. By increasing the EITC, the bill could potentially lift many individuals above the poverty line, helping to alleviate some of the financial hardships faced by these age groups. The anticipated fiscal impact on state revenue is estimated at around $1.4 million in general fund revenue reduction, indicating a commitment to supporting low-income individuals despite the financial implications for the state budget.

Summary

House Bill 660 seeks to significantly increase the earned income tax credit (EITC) for certain demographics, specifically targeting individuals without qualifying children who are at least 18 but under 25 years old or 65 years and older. The bill proposes raising the credit amount from 5% to 50% of the federal earned income tax credit through tax years ending December 31, 2024. This change is aimed at providing substantial tax relief for low-income and vulnerable individuals during the specified period.

Sentiment

The general sentiment surrounding HB 660 appears to be supportive, particularly among advocates for low-income individuals and those focusing on youth and elderly assistance. Legislators who endorse the bill view it as a necessary measure to ensure that the most vulnerable people in the community receive the financial support they need. However, concerns may arise regarding the sustainability of such tax credits and the long-term effects on state funding and budget priorities.

Contention

While support for the bill is evident, there may be some contention regarding its financial implications for the state's budget and potential opposition from those advocating for tighter fiscal policies. Critics may question whether increasing the EITC in this manner can be maintained in future budgets and whether it furthers reliance on state support. Balancing the need for providing economic relief with fiscal responsibility will likely be a point of contention as the bill progresses through the legislative process.