Senate Bill No. by Senator Foil proposes to amend the Louisiana Student Tuition Assistance and Revenue Trust Kindergarten Through Grade Twelve (START K12) Program by increasing the individual income tax exemption for deposits into education savings accounts. The bill specifies that for tax years beginning on or after January 1, 2026, the exemption will rise from $1,200 to $2,400 for single filers and from $2,400 to $4,800 for joint filers per beneficiary. Additionally, if account owners deposit less than the maximum allowed amount in any given year, the difference will roll over to subsequent years and remain exempt from state taxable income.

The bill retains the existing provisions of the START K12 Program while enhancing the tax benefits for account owners. The changes will take effect on August 1, 2025, and will apply to taxable periods starting on or after January 1, 2026. This adjustment aims to provide greater financial support for families saving for educational expenses associated with enrolling in grades K-12.

Statutes affected:
SB13 Original: 17:5(A)(1)