Senate Bill No. by Senator Foil proposes amendments to the Achieving a Better Life Experience Account Program (ABLE) in Louisiana, specifically regarding the tax treatment of deposits made into ABLE accounts. The bill aims to exclude certain amounts deposited into these accounts from state income tax, allowing account owners to exempt up to $2,400 per beneficiary per taxable year for single filers and up to $4,800 for joint filers, starting from tax years beginning on or after January 1, 2026. If account owners do not reach the maximum deposit limit in a given year, the unutilized portion can roll over to subsequent years, maintaining its tax-exempt status.

The bill amends R.S. 17:3088 and enacts R.S. 47:293(9)(a)(xxvii), which outlines the new tax exemptions for ABLE account deposits. It repeals previous provisions that allowed for tax exclusions on deposits made after January 1, 2016, and establishes a clearer framework for the tax treatment of these accounts moving forward. The effective date for these changes is set for August 1, 2025, with applicability for taxable periods beginning on or after January 1, 2026.

Statutes affected:
SB118 Original: