Increases the individual income tax exemption for deposits into the START K12 Program accounts. (8/1/25) (OR DECREASE GF RV See Note)
Summary
SB 13 would expand the state income tax exemption for deposits made into Louisiana’s START K12 education savings accounts. Under current law, deposits into these accounts are exempt from Louisiana individual income tax up to $1,200 per beneficiary for single filers and $2,400 per beneficiary for joint filers. The bill doubles those limits beginning with taxable periods on or after January 1, 2026, raising the exemption to $2,400 for single filers and $4,800 for joint filers.
The bill also preserves the existing rollover feature: if an account owner contributes less than the annual maximum in a given year, the unused portion can carry forward and remain eligible for the exemption in later years. The measure amends the statute governing the Louisiana Student Tuition Assistance and Revenue Trust Kindergarten Through Grade Twelve Program and is scheduled to take effect August 1, 2025, while applying to tax years beginning January 1, 2026.
Impact
SB 13 would amend R.S. 17:3100.5 to increase the amount of START K12 account deposits that may be excluded from Louisiana taxable income, thereby reducing taxable income for eligible account owners who contribute to these education savings accounts. The change would affect individual income tax filings for parents or other account owners saving for K-12 education expenses, and it would likely reduce state general fund revenue relative to current law, as reflected in the bill caption. The bill does not change the underlying program structure or eligible uses, only the tax treatment of deposits and the associated rollover amounts.
Sentiment
Based on the bill text and the absence of recorded committee discussion or votes, the available record suggests a straightforward, policy-focused proposal with no documented public controversy in the materials provided. The measure appears designed to provide additional tax relief and encourage greater participation in the START K12 program. Because no committee transcripts or vote history are included, there is no evidence here of formal support or opposition beyond the bill’s stated purpose.
Contention
The main potential point of contention is fiscal: increasing the exemption would reduce state tax collections and could lower general fund revenue, which may concern budget-focused lawmakers. Another possible issue is policy preference, since education savings account tax incentives can be viewed either as helpful support for families choosing private K-12 expenses or as a tax expenditure that benefits a narrower group of account holders. No specific objections or supporters are documented in the provided transcripts or voting history.