House Bill No. by Representative Riser proposes amendments to the earned income tax credit under R.S. 47:297.8(A)(2). The bill accelerates the termination date of the higher credit amount from January 1, 2031, to January 1, 2025. As a result, the state credit will be reduced to 3.5% of the taxpayer's federal earned income tax credit starting January 1, 2025, instead of maintaining the current rate of 5% until 2030.
The bill also specifies that the new provisions will apply to taxable periods beginning on or after January 1, 2025. It will take effect upon the governor's signature or, if not signed, after the time allowed for bills to become law without signature expires. This change aims to streamline the earned income tax credit structure and adjust the benefits provided to taxpayers in Louisiana.
Statutes affected: HB17 Original: 47:8(A)(2)