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HB 642

TAX CREDITS: Repeals the earned income tax credit (OR +$64,600,000 GF RV See Note)

2025 Regular Session Introduced by Roger Wilder

HB 642 repeals Louisiana's earned income tax credit, eliminating $64.6M in annual refunds to roughly 200,000 working low-income families.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 642

Legislative bill overview

HB 642 would repeal Louisiana's earned income tax credit (EITC), a refundable tax credit that provides financial relief to low- and moderate-income working families. The repeal is projected to generate approximately $64.6 million in general fund revenue annually.

Why is this important

The EITC is one of the most widely used anti-poverty programs in the United States, benefiting approximately 200,000+ Louisiana households annually. Eliminating it would directly reduce take-home pay for working families earning roughly $15,000-$56,000 annually, potentially increasing child poverty rates and reducing economic stimulus from this demographic's spending.

Potential points of contention

  • Impact on working poor: Removes a critical support mechanism for families already working but earning insufficient wages to cover basic expenses
  • Revenue vs. social costs: While generating $64.6M in state revenue, potential offsetting costs include increased demand for emergency services, healthcare, and social safety net programs
  • Economic stimulus reduction: Low-income families typically spend refunded credits immediately in local economies; elimination reduces this economic activity
  • Alignment with federal policy: Conflicts with federal EITC expansion goals and creates a state-level disincentive to work versus federal incentives

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

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