(The Center Square) − Rep. Matthew Willard, D-New Orleans, has filed a bill proposing to double the state’s Earned Income Tax Credit for low- and moderate-income families.
Currently, Louisiana taxpayers receive a state EITC equal to 5% of their federal EITC, a provision set to remain in effect until Dec. 31, 2030. Starting in 2031, the state credit is scheduled to decrease to 3.5% of the federal amount.
The proposed legislation, House Bill 133, would increase the state EITC to 10% of the federal credit through the end of 2030, effectively doubling the benefit for qualifying residents. Any excess credit beyond a taxpayer’s liability is refunded.
Under the proposed law, if a taxpayer qualifies for a federal earned income tax credit of $1,000, they would receive a state EITC of 10% of that amount or about $100. If the taxpayer owes $30 in state income taxes, they would use the $100 credit to offset their liability. If the state credit exceeds the amount owed, the taxpayer would receive a $70 refund from Louisiana.
If signed into law by Gov. Jeff Landry, the change would take effect on Jan. 1, 2026, applying to tax years beginning on or after that date.
Willard has also filed two other tax bills before the session’s start. HB271 would increase the state’s homestead exemption from $7,500 to $12,500 of a home’s assessed value.
HB337 would create an income tax credit for taxpayers with a dependent age 6 or less.
It might be tough sledding for Willard’s bills without support from Republicans, as the GOP has big majorities in both the House (73-31) and the Senate (28-11).
Willard was a vocal critic of Landry’s tax reforms, which axed many tax credits. Had the recently rejected amendment to article seven of Louisiana’s constitution passed, any new tax credit or rebate would have needed a two-thirds vote from state lawmakers to take effect.
