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SB 12

TAX/INCOME/PERSONAL: Excludes certain amounts deposited into ABLE accounts for qualified expenses of persons with disabilities from state income tax. (8/1/25) (OR DECREASE GF RV See Note)

2025 Regular Session Introduced by Franklin Foil

Louisiana bill would exclude ABLE account deposits for disabled individuals' qualified expenses from state income tax, reducing state revenue.

Withdrawn from the files of the Senate prior to introduction.
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Bill Summary · SB 12

Legislative bill overview

SB 12 would exclude deposits into ABLE accounts (tax-advantaged savings accounts for people with disabilities) from Louisiana state income taxation. The bill targets funds deposited for qualified disability-related expenses and would reduce state general fund revenue accordingly.

Why is this important

ABLE accounts allow individuals with disabilities to save up to $17,000 annually (2023 limit) without losing means-tested benefits like SSI or Medicaid. This tax exclusion would make Louisiana's ABLE accounts more attractive financially, potentially increasing participation among disabled residents and reducing their overall tax burden on disability-related savings.

Potential points of contention

  • Revenue impact: The bill explicitly notes it would decrease general fund revenue (GF RV), requiring lawmakers to identify offsetting cuts or revenue sources elsewhere in the state budget
  • Scope limitations: The bill only excludes deposits for "qualified expenses," raising questions about definition, verification, and administrative enforcement complexity
  • Equity considerations: Creates a tax benefit specifically for disabled individuals, which some may view as appropriate accommodation while others question selective tax treatment based on disability status

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

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