This 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 exempt amounts deposited into ABLE accounts from their taxable income, with a cap of $2,400 per beneficiary for single filers and $4,800 for joint filers. Additionally, any unused portion of these maximum contributions can roll over to subsequent years, maintaining their tax-exempt status. The bill also mandates that the authority submit an annual report to the Department of Revenue detailing donations made to ABLE accounts.

Furthermore, the bill introduces new legal language under R.S. 47:293(9)(a)(xxvii), defining tax table income to include the amounts deposited in ABLE accounts for qualified expenses related to disabilities, while also stipulating that any funds withdrawn for non-qualified expenses will be subject to taxation. The overall aim of the bill is to enhance the financial support available to individuals with disabilities by providing tax benefits for contributions to their ABLE accounts.

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