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.
- 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