This bill enacts new provisions in Louisiana law regarding individual income tax, specifically allowing a deduction from tax table income for certain taxpayers who receive hardship distributions from retirement accounts. The new section, R.S. 47:297.26, defines "hardship distribution" as a withdrawal made due to an immediate and serious financial need, and establishes eligibility criteria for the deduction. A "qualifying taxpayer" is defined as an individual diagnosed with a terminal illness by a licensed physician, which also extends to their spouse in the case of married joint filers.

The bill specifies that the provisions will apply to taxable periods beginning on or after January 1, 2026, and will take effect on the same date. The addition of this deduction aims to provide financial relief to individuals facing significant health challenges, thereby supporting them during difficult times.