Louisiana Senate Bill SB25

Louisiana 2017 Regular Session

• Introduced: 3/20/17
• Refer: 3/20/17
• Refer: 4/10/17
• Report Pass: 4/17/17
• Engrossed: 5/15/17
• Refer: 5/16/17
• Report Pass: 5/30/17
• Enrolled: 6/7/17
• Chaptered: 6/23/17
• Passed: 6/23/17

Caption

Sunsets the individual income tax education credit. (gov sig) (EN +$9,200,000 GF RV See Note)

Impact

The introduction of SB 25 suggests a significant change to the financial landscape for families seeking relief from educational expenses through state tax credits. By eliminating the individual income tax education credit, the bill may affect many taxpayers who were eligible to claim these credits for their dependents in kindergarten through twelfth grade. This decision reflects ongoing discussions about budgetary constraints and the prioritization of state spending, as the bill is expected to result in a reduction of approximately $9.2 million in general fund revenue. As such, its passage signifies a tightening of financial support for educational costs at a time when many families may be seeking additional assistance.

Summary

Senate Bill 25 focuses on the individual income tax education credit in Louisiana, specifically targeting tax credits associated with educational expenses for children attending school in the state. The bill aims to amend the current tax law, particularly R.S. 47:297(D) and (D)(1), by repealing the provision that allows tax credits for educational expenses incurred until January 1, 2017, effectively sunsetting this particular credit. This move indicates a shift in the state's approach to providing tax relief related to education costs, impacting families who relied on this credit for their children's schooling expenses.

Sentiment

The sentiment surrounding SB 25 appears to be largely fiscal, with debates likely centered around the state's budget and financial responsibilities. Supporters of the sunset provision may argue that it is essential to ensure fiscal responsibility and address budget deficits, while opponents may express concerns regarding the impact on families and education funding. Overall, the emotional response to this bill could vary significantly, depending on personal experiences with the education system and perspectives on state financial priorities.

Contention

Notable points of contention include the balance between fiscal responsibility and the provision of educational supports. Advocates for maintaining tax credits might argue that access to education and financial assistance is vital for families, particularly in low-income brackets. They may express concerns that removing the tax credit could detract from the ability of families to afford educational options for their children. The bill's proponents, on the other hand, may argue that it is necessary to streamline tax expenditures in a way that favors overall budget stability for the state and allocates resources towards more critical funding priorities.