Bill
Bill > HB414
LA HB414
Exempts certain overtime compensation and income earned from tips from state income taxation (OR DECREASE GF RV See Note)
summary
Introduced
04/03/2025
04/03/2025
In Committee
04/14/2025
04/14/2025
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
2025 Regular Session
Bill Summary
AN ACT To enact R.S. 47:293(9)(a)(xxvii) and (xxviii), 297.26, and 297.27, relative to individual income tax; to exempt certain overtime compensation from the calculation of tax table income; to exempt certain income earned as tip compensation from the calculation of tax table income; to provide for the amount of these deductions; to provide for definitions; to provide for requirements and limitations; to authorize the promulgation of rules; to provide for applicability; to provide for an effective date; and to provide for related matters.
AI Summary
This bill creates two new tax deductions for Louisiana residents: one for overtime compensation and another for tip income. Under the overtime compensation deduction, employees can subtract the full amount of wages earned for work beyond a 40-hour workweek from their taxable income. For the tip income deduction, taxpayers can deduct the total of their reported social security tips, allocated tips, and unreported cash and charge tips as documented on IRS forms W-2 and 4137. To claim either deduction, taxpayers must maintain detailed records and be prepared to provide documentation to the Louisiana Department of Revenue if requested. The Department of Revenue is authorized to create rules for implementing these deductions. These tax breaks will become applicable for Louisiana state income tax returns beginning January 1, 2026, potentially providing financial relief for workers in industries with significant overtime and tip-based compensation, such as hospitality, service, and retail sectors.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
House Committee on Ways & Means (09:00:00 5/5/2025 Room 6) (on 05/05/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB414&sbi=y |
| House Committee Amendment #2046 W&M Draft | https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1410347 |
| Fiscal Note - HB414 Original With Proposed House Cmte Amendments | https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1410753 |
| Analysis - Digest of HB414 Original | https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1403385 |
| BillText | https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1403378 |
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