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Bill

HB 402

TAX/INCOME TAX: Authorizes an income tax deduction for veterans with certain disabilities (EG -$11,300,000 GF RV See Note)

2025 Regular Session Introduced by Roy Adams and 24 co-sponsors

Louisiana establishes income tax deduction for disabled veterans, costing state ~$11.3M annually in foregone revenue.

Reported favorably. Rules suspended. Read by title and recommitted to the Committee on Finance.
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Bill Summary · HB 402

Legislative bill overview

HB 402 creates a state income tax deduction for Louisiana veterans who have service-connected disabilities. The deduction amount appears to be approximately $11,300 per eligible veteran, reducing the taxable income upon which state income tax is calculated. The bill passed the House unanimously (98-0) and is currently in Senate committee consideration.

Why is this important

Veterans with disabilities often face reduced earning capacity due to service-connected conditions, and this deduction provides direct tax relief to help offset financial hardship. The fiscal note indicates the state will forgo approximately $11.3 million in general fund revenue annually, representing a meaningful but modest budgetary impact. This reflects a policy choice to provide targeted tax incentives to a specific population group.

Potential points of contention

  • Revenue impact during budget constraints: The $11.3M annual cost could be contentious if Louisiana faces budget pressures, requiring either spending cuts elsewhere or tax increases on other groups
  • Eligibility scope and definition: Specifics about which disabilities qualify, verification processes, and how "service-connected" is defined may create administrative complexity or disputes about fairness
  • Broader tax policy questions: Whether targeted deductions are preferable to direct veteran benefit programs, and whether similar deductions should apply to other groups (disabled non-veterans, other public servants, etc.)

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

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