Provides for an additional standard deduction for taxpayers sixty-five years of age and older. (1/1/26) (OR -$72,500,000 GF RV See Note)
Summary
SB 240 would amend Louisiana’s personal income tax law to give taxpayers age 65 and older an additional standard deduction beginning with tax years on or after January 1, 2026. The additional deduction would be equal to the standard deduction amount available to a single filer under existing law, effectively increasing the deduction available to qualifying older taxpayers regardless of filing status.
The bill leaves the current standard deduction structure in place and adds a new age-based benefit on top of it. According to the digest, the existing standard deduction for single filers is $12,500 and is scheduled to be indexed to inflation beginning in 2026; SB 240 would tie the new senior deduction to that same single-filer amount, so the value would rise as the underlying standard deduction changes under present law.
Impact
The bill would amend R.S. 47:294 by adding a new Subsection C to create an additional standard deduction for Louisiana income tax purposes for individuals age 65 or older. Its practical effect would be to reduce taxable income for eligible seniors and likely lower state income tax liability for those taxpayers beginning in 2026. The fiscal note in the caption indicates a significant negative general fund revenue impact, reflecting reduced state tax collections.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the materials supplied. Based on the bill’s structure, it appears designed as a tax relief measure for older residents, which typically draws favorable sentiment from taxpayer and senior advocacy perspectives, while raising revenue concerns from budget-focused observers due to the estimated loss in general fund revenue.
Contention
The main point of contention is fiscal cost: the bill’s caption notes an estimated $72.5 million general fund revenue reduction, which could prompt concern about the impact on state finances and competing budget priorities. A secondary issue is policy design—because the benefit is limited to taxpayers 65 and older, supporters may view it as targeted relief for seniors, while critics may question whether the age-based deduction is the most efficient or equitable way to deliver tax relief.