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HB 133

TAX CREDITS: Increases the amount of the earned income tax credit (OR -$64,600,000 GF RV See Note)

2025 Regular Session Introduced by Mandie Landry and 1 co-sponsor

Louisiana bill increases earned income tax credit for working low-income families, costing the state $64.6 million in reduced tax revenue annually.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 133

Legislative bill overview

HB 133 proposes to increase Louisiana's earned income tax credit (EITC), a refundable tax benefit for low-to-moderate income working individuals and families. The bill carries a fiscal note indicating a $64.6 million reduction in General Fund revenue, meaning it would cost the state that amount in foregone tax revenue or increased refunds.

Why is this important

The EITC is one of the largest anti-poverty programs in the United States, directly putting money into the pockets of working people. Expanding it could reduce poverty and increase economic activity among lower-income households, though it also represents a significant state budget commitment during a time when Louisiana faces ongoing fiscal pressures.

Potential points of contention

  • Budget impact: The $64.6 million fiscal cost occurs against Louisiana's historically tight state budget, raising questions about whether this is affordable without cutting other programs or raising revenue elsewhere
  • Program design details: The bill lacks specifics on how much the credit increases, who qualifies, and whether it matches federal EITC levels—these details substantially affect both cost and effectiveness
  • Economic philosophy divide: Supporters view it as targeted poverty relief for workers; critics may argue tax credits should be limited or that the money could be better spent on other priorities

Compiled from official sources — confirm details with the bill’s official record.

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