Amends tax laws to exempt ABLE account deposits from state income tax starting January 1, 2026. Key points:

• Exemption Limits: Up to $2,400 (single filers) or $4,800 (joint filers) per beneficiary annually, with unused amounts rolling over to future years.
• Scope: Includes deposits and interest, but only for qualified disability expenses; non-qualified withdrawals are taxable.
• Anti-Stacking: Prevents combining this exemption with existing educational deductions (e.g., tuition, homeschooling costs).
• Purpose: Encourages savings for disability-related expenses, enhancing financial support for affected families.
• Impact: Reduces taxable income for account owners, though capped limits moderate state revenue loss.

Effective August 1, 2025, this bill clarifies and expands prior ABLE tax benefits.

CONSTITUTIONAL AMENDMENT

Proposes a constitutional amendment to allow parish governing authorities in Louisiana to grant an additional homestead exemption of up to $22,500 on top of the existing $7,500 exemption. This enhancement would apply only if approved by the respective parish governing authority. Any resulting decrease in ad valorem tax revenue must be absorbed by the taxing authority without shifting the tax burden to other taxpayers through reappraisal or millage adjustments.

Unless individual parishes choose to implement their own criteria, there is no means testing associated with this additional exemption as per the bill's current language.

The proposed amendment is scheduled for voter consideration on November 15, 2025.

SENATE committee amendments technical

Proposes amendments to Louisiana's hunting and fishing license regulations, focusing on benefits for disabled veterans, seniors, and retired or honorably discharged military personnel.

Key provisions:

1. Louisiana Wildlife and Fisheries Foundation Escrow Account:

• The bill clarifies that donations in this account must be used exclusively to purchase hunting and fishing licenses for disabled veterans.
• Up to 10% of funds may cover administrative costs.
• Unspent funds will remain in the account at the end of each fiscal year.
• Funds can also purchase commemorative durable hard cards with licensing information for disabled veterans.

1. Senior/Retired Military/Honorably Discharged Veteran Hunting and Fishing License:

• Seniors:
• Residents turning 60 before June 1, 2000, can obtain an annual license at no cost.
• Residents turning 60 between June 1, 2000, and May 31, 2022, can obtain an annual license for $5.
• Residents turning 65 on or after June 1, 2027, can obtain an annual license for $20.
• Retired or Honorably Discharged Military Members:
• Retired U.S. Armed Forces members, including Louisiana Army National Guard or Air National Guard, who were born in Louisiana or are residents, can obtain an annual license for $20.
• Honorably discharged resident members of the U.S. Armed Forces, including the Louisiana National Guard, are also eligible.
• Applicants must provide identification and proof of eligibility, such as a DD-214 or NGB-22 form, to the Department of Wildlife and Fisheries.

Proposes a state and local sales and use tax exemption for purchases made by Miles Perret Cancer Services. The exemption applies to tangible personal property, including medical supplies, supportive care supplies, nutritional supplements, personal care items, mobility aids, and hygiene supplies. If enacted, this exemption would take effect on July 1, 2025, and apply to taxable periods beginning on or after that date.

Miles Perret Cancer Services is a nonprofit organization designated as a 501(c)(3) public charity by the IRS. Established in 2002, its mission is to serve families in Acadiana who are fighting and surviving cancer with care and compassion.  The organization provides a range of non-medical programs and services at no cost to clients such as emotional support and guidance.

Expands Louisiana’s state sales and use tax exemption for beverages sold in containers.

Key Provisions: 

- Exempts from state sales tax the sale of soft drinks, water, mineral water, carbonated water, and flavored water sold in bottles, jugs, or containers. 

- Applies only to the state portion of sales tax (not local taxes). 

- Applies to taxable periods beginning on or after July 1, 2025. 

- Effective upon governor’s signature.

Allows certain agricultural cooperatives to claim and receive refundable tax credits for local inventory taxes paid.

Key Provisions: 

- Authorizes the inventory tax credit for farmers, fruitgrowers, or similar cooperatives that market products for members or other producers. 

- Allows these entities to receive refunds for credits that exceed their tax liability, even if they are structured as C-corporations. 

- Applies to tax periods beginning on or after January 1, 2025. 

- Effective upon governor’s signature.

Summary: Grants an additional standard deduction to Louisiana taxpayers age 65 and older, starting January 1, 2026.

Key Provisions:

• Taxpayers age 65 or older will receive an extra standard deduction equal to the standard deduction for a single filer (currently $12,500, adjusted annually for inflation).
• Applies beginning with the 2026 tax year.
• This deduction is in addition to any standard deduction the filer already qualifies for based on filing status.

HOUSE floor amendments technical

HOUSE committee amendments [LINK] expand the bill to include a statewide individual income tax rate reduction from 3.00% to 2.75%, effective January 1, 2027, and make both the new senior deduction and the rate cut contingent on voter approval of a constitutional amendment in HB472. The bill’s effective date is pushed to 2027 and now applies more broadly to all individual taxpayers, not just those age 65 and older.

Authorizes an individual income tax deduction for Louisiana residents aged 65 and older, equal to the standard deduction for single filers.

Key Provisions:

• Creates a new deduction from tax table income for taxpayers age 65 and older.
• Deduction amount equals the standard deduction for single filers ($12,500, indexed for inflation after 2026).
• This deduction is in addition to the regular standard deduction.
• Taxpayers must retain records verifying eligibility and provide them to the Department of Revenue upon request.
• Applies to taxable periods beginning on or after January 1, 2026.
• Department of Revenue may adopt rules to implement the deduction.