Louisiana House Bill HB202

Louisiana 2017 Regular Session

• Introduced: 3/29/17
• Refer: 3/29/17
• Refer: 4/10/17

Caption

Repeals certain educational tax expenditures (OR +$41,000,000 GF RV See Note)

Impact

If enacted, HB 202 would have significant implications for state tax law and education funding policies. By repealing these tax benefits, the bill is expected to result in a considerable decrease in tax revenue, with estimates suggesting a reduction of approximately $41 million in general fund revenues. The impact will likely be felt by families who depend on these tax deductions and credits to alleviate the financial burden of educational expenses, particularly those with children enrolled in private schools. Additionally, this change could influence the decision-making of parents regarding their choice of schools and the accessibility of private education options for lower-income families.

Summary

House Bill 202 aims to repeal certain educational tax expenditures in Louisiana, specifically the elementary and secondary school tuition income tax deduction and the educational expenses income tax credit. The bill removes the existing provision that allows taxpayers to deduct amounts paid for tuition and fees related to dependents attending nonpublic schools, which historically benefited families opting for private education. Additionally, the repeal includes the $18 income tax credit for educational expenses incurred by taxpayers with dependent children in kindergarten through 12th grade, further eliminating incentives for educational spending.

Sentiment

The sentiment surrounding HB 202 appears to be mixed. Proponents argue that the repeal will help address budgetary constraints and reallocate funding more equitably across public schools. However, opponents view the withdrawal of these tax incentives as detrimental to families who make financial sacrifices to provide quality education for their children. The discussions reflect a divided opinion on the necessity and equity of tax expenditure as a means to support educational choice and its implications for state education policy.

Contention

Key points of contention regarding HB 202 center around educational equity and access. Supporters of the repeal assert that it represents a fair allocation of state resources, while detractors believe it undermines efforts to provide greater educational opportunities for students attending private institutions. This debate highlights ongoing tensions in Louisiana's education sector, particularly concerning the balance between public and private education funding and how tax measures can affect parental choice within the educational landscape.