Louisiana Gov. John Bel Edwards (D) has signed four bills into law that are designed to provide relief to taxpayers affected by the COVID-19 pandemic and recent hurricanes.
Edwards announced October 29 that he signed H.B. 20, H.B. 26, H.B. 89, and S.B. 67, along with 30 other bills that were passed during the recent special session.
H.B. 20, signed into law October 28 as Act 13, creates a tax deduction for expenses related to educational coaching services for an “in-person facilitator of virtual education” provided by a public or approved nonpublic elementary or secondary school. The deduction is available for expenses incurred from March 31 through December 31 and is available only for tax year 2020.
The bill is designed to provide tax relief to families with children who are learning in pod situations, which has become a popular way of learning during the pandemic. The deduction is equal to the actual amount a taxpayer has paid for educational coaching services per eligible child or $5,000, whichever is less. The deduction can’t exceed the individual’s total taxable income.
H.B. 20 defines in-person facilitator of virtual education as an individual providing in-person instruction or assistance to one or more elementary or secondary school students. The individual must be at least 18 years old at the time the services are provided or must have graduated from high school, and can’t be the taxpayer or a member of the taxpayer’s immediate family.
H.B. 26, signed October 28 as Act 16, establishes a sales tax holiday on November 20 and 21, during which the state sales and use tax won’t apply to the first $2,500 of the sales price or cost price of consumer purchases of tangible personal property. The bill is aimed at providing relief from the pandemic and Hurricanes Delta and Laura. The bill excludes vehicle sales and prepared meals from the tax holiday.
The bill is expected to reduce state revenues by an estimated $4.5 million, according to an October 21 fiscal note.
H.B. 89, signed October 28 as Act 26, modifies the definition of federal income tax liability to include net disaster losses for Hurricanes Delta and Laura. Under the bill, federal income tax liability will be increased for tax years 2019 and 2020 by the amount that an individual’s federal income tax was decreased after claiming the federal itemized deduction for net disaster losses attributed to the hurricanes.
S.B. 67, signed October 28 as Act 41, allows the state Department of Economic Development to grant optional extensions for some job creation requirements for enterprise zone tax incentives and quality jobs rebates for companies with due dates affected by the pandemic or by Hurricanes Delta and Laura.
Under the bill, a 12-month extension will be allowed for companies with executed enterprise zone incentive contracts. Employers with an executed quality jobs incentive rebate contract will have the option to extend the third annual rebate filing period for an additional 12 months. Employers opting for either extension must notify the department before the original certification due date but not later than December 31.