The bill amends existing Louisiana law regarding the Achieving a Better Life Experience (ABLE) Account Program, specifically focusing on tax implications for deposits made into these accounts. Starting from tax years beginning on January 1, 2026, the bill allows account owners to exclude certain deposits made on behalf of designated beneficiaries from their taxable income. The maximum exclusion is set at $2,400 per beneficiary for single filers and $4,800 for joint filers. Additionally, any unused portion of these maximum amounts can roll over to subsequent years, maintaining the tax-exempt status for future contributions.

Furthermore, the bill mandates that by January 31 of each year, the authority must report to the Department of Revenue all donations made to ABLE accounts in the previous calendar year, including details such as the account owner's name, social security number, and total deposits. The bill also introduces a new definition in the tax code that specifies how deposits into these special savings accounts for individuals with disabilities will be treated for tax purposes, ensuring that any funds withdrawn for non-qualified expenses will be subject to taxation.

Statutes affected:
SB118 Original:
SB118 Engrossed:
SB118 Enrolled:
SB118 Act :