HLS 25RS-898 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 642
BY REPRESENTATIVE WILDER
TAX CREDITS: Repeals the earned income tax credit
1 AN ACT
2To repeal R.S. 47:297.8, relative to individual income tax; to repeal the earned income tax
3 credit; and to provide for an effective date.
4Be it enacted by the Legislature of Louisiana:
5 Section 1. R.S. 47:297.8 is hereby repealed in its entirety.
6 Section 2. This Act shall become effective on January 1, 2026.
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 642 Original 2025 Regular Session Wilder
Abstract: Repeals the earned income tax credit.
Present law provides for a refundable 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, 2030. Beginning Jan. 1, 2031, the amount of the credit is 3.5% of
the amount of the taxpayer's federal earned income tax credit.
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 repeals present law.
Effective January 1, 2026.
(Repeals R.S. 47:297.8)
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