Senate Bill No. by Senator Foil aims to amend the Achieving a Better Life Experience (ABLE) Account Program in Louisiana by providing tax exemptions for certain deposits made into ABLE accounts. Specifically, the bill stipulates that for tax years beginning on or after January 1, 2026, amounts deposited into an ABLE account on behalf of a designated beneficiary will be exempt from the account owner's taxable income, with a cap of $2,400 for single filers and $4,800 for joint filers per beneficiary per taxable year. Additionally, if the account owner deposits less than the maximum allowed, the unused portion can roll over to subsequent years, maintaining its tax-exempt status.

The bill also introduces anti-stacking provisions, which prevent account owners from claiming both the tax exemption for ABLE account deposits and tax deductions for educational expenses in the same taxable year. This change is reflected in the amendments to R.S. 47:297.10, 297.11, and 297.12, which clarify that disbursements from the Louisiana Student Tuition Assistance and Revenue Trust Program used for tuition and fees will not be eligible for deductions if the account owner has claimed the ABLE exemption. The provisions of this act will take effect on August 1, 2025, and will apply to taxable periods starting January 1, 2026.

Statutes affected:
SB12 Original: 47:10(C), 47:11(B), 47:12(C)