Louisiana

Earned Income Tax Credit (EITC)

Rate (Fully-Refundable): 5% of the federal credit

Eligibility Requirements: All Louisiana taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action: In June 2018, Governor John Bel Edwards (D) signed into law a $21 million tax package that included an expansion of the state’s EITC from 3.5 to 5% of the federal credit.

Notes:

  • During the 2016 second extraordinary legislative session, lawmakers in both the House and Senate considered bills that would expand the state EITC. HB 61 would have doubled the rate to 7% of the federal credit, while SB 7 would have increased the rate more modestly to 5%. Neither bill made it past committee.
  • In December of 2015, new Louisiana Gov. John Bel Edwards (D) announced an anti-poverty agenda that pushes for a doubling of the state EITC as well as increasing the minimum wage.

Child Tax Credit (CTC)

Louisiana does not currently offer a state-level CTC.

Child and Dependent Care Tax Credit (CDCTC)

Rates (Partially Refundable):2

  • Credit is refundable only for filers with earned incomes under $25,000
  • State CDCTC is equal to 50% of the federal credit
  • Credit is non-refundable for all other eligible taxpayers
  • For filers with earned incomes of $25,000-$50,000: 30% of federal credit
  • For filers with earned incomes $50,000-$60,000: 10% of federal credit
  • For filers with earned incomes above $60,000: 10% of federal credit not to exceed $25

Eligibility Requirements: Same as federal, although Louisiana taxpayers may file for the state credit even if they did not file for the federal credit.

Notes: Louisiana has two other related credits. The School Readiness Tax Credit offers a percentage increase of a family’s calculated state CDCTC for any children under age six that are enrolled at a child care facility receiving two stars or higher from Louisiana’s Quality Start rating system.3 Taxpayers may also claim a credit for household expenses associated with the care of dependents who are “physically and mentally incapable of caring for themselves.”4

Sources:

1Louisiana’s Earned Income Tax Credit, Louisiana Budget Project
22015 Income Tax Instruction Booklet, Louisiana Department of Revenue
3FAQs for Parents, Quality Start Child Care Rating System
42015 Income Tax Instruction Booklet, Louisiana Department of Revenue