House Bill No. by Representative Wilder seeks to repeal the earned income tax credit as outlined in R.S. 47:297.8. The bill eliminates the provision that allows for a refundable individual income tax credit based on the taxpayer's federal earned income tax credit, which is currently set at 5% through December 31, 2030, and 3.5% starting January 1, 2031. Additionally, the bill removes the stipulation that any excess credit amount exceeding the taxpayer's tax liability for the year would be refunded from current tax collections.

The proposed law will take effect on January 1, 2026, effectively discontinuing the earned income tax credit in Louisiana. This repeal signifies a significant change in the state's tax policy regarding support for low to moderate-income earners who benefit from this credit.

Statutes affected:
HB642 Original: