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 would be refunded from current tax collections.

The repeal of the earned income tax credit will take effect on January 1, 2026. This legislative change aims to modify the existing tax structure by removing the financial benefits associated with the earned income tax credit, which has been a source of support for low to moderate-income individuals and families.

Statutes affected:
HB642 Original: