SB 118 Louisiana Senate · 2025 Regular Session

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

SB 118 modifies Louisiana's tax code to exclude certain deposits into ABLE accounts (Achieving a Better Life Experience Accounts) from state income tax. Starting in 2026, account owners can exclude up to $2,400 annually (single filers) or $4,800 (joint filers) per beneficiary for qualified disability expenses, with unused amounts rolling over to future years. This applies only to deposits made for beneficiaries with disabilities, excluding the funds from taxable income calculations. The bill directly affects Louisiana residents using ABLE accounts to save for disability-related expenses. It takes effect for tax years beginning January 1, 2026.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Apr 2025

Committee Review

May 2025

Senate Passage

Jun 2025

House Passage

May 2025

Signed into Law

Jun 2025

Introduced Apr 3, 2025 Signed Jun 8, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

SB118 Original → SB118 Act · 4 edits

MODERATE

This bill updates the tax rules for ABLE accounts in Louisiana, increasing the annual contribution limits for tax-free growth. It raises the exemption from $2,400 to $4,800 for single filers and $4,800 to $9,600 for joint filers, and allows unused contribution amounts to roll over to future years. The changes also mandate that the state authority report annual donation totals to the Department of Revenue.

Scope change

The bill expands the financial scope of the ABLE program by significantly increasing the annual contribution thresholds eligible for state income tax exemption and introduces a rollover provision for unused contributions.

FISCAL

Increased the annual tax-exempt contribution limit from $2,400 to $4,800 for single filers and from $4,800 to $9,600 for joint filers.

Added a rollover provision allowing unused annual contribution amounts to carry forward to subsequent years.

REQUIREMENT

Requires the ABLE account authority to submit an annual electronic report to the Department of Revenue listing all donations made to ABLE accounts.

TIMELINE

Updated the effective date for these new tax provisions to apply to tax years beginning on or after January 1, 2026.

Floor votes · Senate Apr 22, 2025 · House May 28, 2025

How they voted

35–0

Passed · 2 other

Total votes 37

Apr 22, 2025

D Democratic11

9 Yea 2

81% Yea

R Republican26

26 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 1, 2025

Upper · Passed

Amendments proposed by the House read and concurred in by a vote of 36 yeas and 0 nays.

upper

May 28, 2025

Lower · Passed

Read third time by title, amended, roll called on final passage, yeas 92, nays 1. Finally passed, ordered to the Senate.

lower

May 20, 2025

Introduced

Reported without Legislative Bureau amendments.

lower

May 19, 2025

Lower · Passed

Reported favorably (12-0). Referred to the Legislative Bureau.

lower

Apr 23, 2025

Committee

Read by title, under the rules, referred to the Committee on Ways and Means.

lower

Apr 22, 2025

Upper · Passed

Read by title, passed by a vote of 37 yeas and 0 nays, and sent to the House. Motion to reconsider tabled.

upper

Apr 15, 2025

Upper · Passed

Reported favorably.

upper

Apr 14, 2025

Committee

Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Revenue and Fiscal Affairs.

upper

1 primary · 35 co-sponsors