TAX/INCOME-INDIV/EXEMPT: Authorizes an income tax deduction for tip income earned by taxpayers at or below certain income levels (OR DECREASE GF RV See Note)

HB 198 creates a Louisiana income tax deduction for tip income earned by eligible residents. It allows taxpayers with adjusted gross income below $65,000 (single) or $130,000 (married filing jointly) to deduct 100% of their tip income, with the deduction percentage phasing down to 20% for higher earners within specified income ranges. The deduction applies to reported tip income from IRS Forms W-2 and 4137, effective for tax years beginning January 1, 2026. The provision terminates if federal tax law changes to exempt tip income from federal taxation.