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 provisions of this act will apply to taxable periods beginning on or after January 1, 2026, and the act itself will become effective on that same date. The bill includes an insertion in R.S. 47:293(9)(a) to specify the deduction for hardship distributions from retirement accounts, thereby integrating this new tax relief measure into the existing tax framework.