Establishes an income tax credit for taxpayers who claim a dependent under the age of six (OR -$65,200,000 GF RV See Note)
Summary
HB 337 creates a new refundable Louisiana individual income tax credit for taxpayers who claim a dependent child under age six on their state return. The credit is set at $500 per qualifying child and is available only to lower- and middle-income filers, with income caps of $30,000 for single, head of household, and married-separate filers, and $60,000 for married-joint and qualified surviving spouse filers.
The bill applies to taxable years beginning on or after January 1, 2026, and becomes effective on that date. Because the credit is refundable, taxpayers whose credit exceeds their tax liability would receive the excess as a refund, treated as an overpayment under Louisiana tax law. The measure would add R.S. 47:297.2 to the income tax code and would require the Department of Revenue to administer the refund through current tax collections.
Impact
HB 337 would amend Louisiana income tax law by adding a new refundable credit for qualifying dependents under age six, thereby reducing tax liability for eligible households and potentially generating refunds for taxpayers with little or no income tax owed. It would primarily affect families with young children and incomes below the bill’s thresholds, while also creating a fiscal impact on the state general fund due to reduced revenue and refund payments.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill’s structure, it appears designed as a family tax relief measure targeted to lower-income taxpayers with young children, which generally suggests a pro-family, pro-tax-relief policy intent. The fiscal note in the caption indicates a significant negative general fund impact, which may be a source of concern even absent recorded discussion.
Contention
The main policy tension in HB 337 is between providing targeted tax relief to families with young children and the resulting cost to state revenues. Supporters would likely emphasize affordability for households with dependents under six and the refundable nature of the credit, while critics may focus on the estimated general fund revenue loss and whether the income limits and age cutoff are the best way to target assistance. No specific objections or amendments are documented in the provided context.