Bill > SB118

This bill modifies Louisiana state tax law regarding ABLE (Achieving a Better Life Experience) accounts, which are special savings accounts for individuals with disabilities. Starting in tax year 2026, the bill allows account owners to exclude deposits from their taxable income, with a limit of $2,400 per beneficiary for single filers and $4,800 for joint filers annually. If an account owner does not deposit the full allowable amount in a given year, the remaining balance can roll over and be excluded from taxable income in subsequent years. The bill also requires the ABLE account authority to submit an annual report to the Department of Revenue by January 31st, listing account owners' names, social security numbers, and total deposits for the previous calendar year. Importantly, if funds are withdrawn from an ABLE account for purposes other than qualified disability expenses, those withdrawn amounts will be included in the account owner's taxable income. This legislation aims to provide tax incentives and financial support for individuals with disabilities and their families by offering tax benefits for savings dedicated to disability-related expenses.