Senate Bill No. 149, introduced by Senator Seabaugh, aims to repeal the earned income tax credit as outlined in R.S. 47:297.8. Currently, this tax credit allows individuals to receive a credit against their income tax based on their federal earned income tax credit, with the amount set at 5% through December 31, 2030, and decreasing to 3.5% starting January 1, 2031. The proposed legislation will eliminate this credit entirely for taxable periods beginning on or after January 1, 2026.

The bill specifies that the repeal will take effect on January 1, 2026, thereby removing any financial benefit associated with the earned income tax credit for eligible taxpayers in Louisiana. This legislative change reflects a significant shift in the state's approach to individual income tax credits, impacting low to moderate-income earners who typically benefit from such credits.

Statutes affected:
SB149 Original: