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LA SB118

Bill

Status

Passed

6/8/2025

Primary Sponsor

Franklin Foil

Click for details

Origin

Senate

2025 Regular Session

AI Summary

  • Deposits into ABLE (Achieving a Better Life Experience) accounts for persons with disabilities become exempt from Louisiana state income tax beginning January 1, 2026

  • Single filers may exclude up to $2,400 per beneficiary per year; joint filers may exclude up to $4,800 per beneficiary per year

  • Unused portions of the annual deduction limit roll over to subsequent years and may be claimed in addition to that year's maximum deduction

  • Withdrawals used for purposes other than qualified disability expenses must be included in taxable income, including any accrued interest

  • The ABLE authority must submit annual reports to the Department of Revenue by January 31 listing all account owner names, Social Security numbers, and deposit amounts from the prior year

Legislative Description

Excludes certain amounts deposited into ABLE accounts for qualified expenses of persons with disabilities from state income tax. (8/1/25) (EN DECREASE GF RV See Note)

TAX/INCOME/PERSONAL

Last Action

Effective date 8/1/2025.

6/8/2025

Committee Referrals

Ways and Means4/23/2025
Revenue & Fiscal Affairs4/3/2025

Full Bill Text

No bill text available