House Bill No. by Representative Willard proposes an amendment to the earned income tax credit in Louisiana, specifically modifying R.S. 47:297.8(A)(2). The bill increases the state earned income tax credit from 5% to 10% of the federal earned income tax credit that individuals are eligible for under Section 32 of the Internal Revenue Code. This change will apply to tax years beginning on or after January 1, 2026, and will remain in effect through December 31, 2030.

Additionally, the bill maintains the provision that if the credit amount exceeds the taxpayer's tax liability, the excess will be refunded to the taxpayer from current tax collections. The effective date for this increase in the credit is set for January 1, 2026, ensuring that taxpayers can benefit from the enhanced credit in the upcoming tax years.

Statutes affected:
HB133 Original: 47:8(A)(2)