House Bill No. by Representative Willard proposes the establishment of a refundable individual income tax credit for taxpayers who claim dependents under the age of six. The bill enacts R.S. 47:297.2, which allows a credit of $500 for each qualifying child claimed as a dependent on a Louisiana income tax return. Eligibility for this credit is limited to taxpayers with specific filing statuses and adjusted gross income thresholds: those filing as single, head of household, or married-separate with an income of $30,000 or less, and those filing as married-joint or qualified surviving spouse with an income of $60,000 or less.

Additionally, the bill stipulates that if the credit amount exceeds the taxpayer's tax liability, the excess will be treated as an overpayment, allowing for a refund from the Department of Revenue. The provisions of this act will apply to taxable years beginning on or after January 1, 2026, and the act will become effective on the same date.