Below are some of the tax law changes the state of Louisiana has made for tax year 2021:
2021 LOUISIANA REFUNDABLE CHILD CARE CREDIT -
- Due to the increase in the Federal Child Tax Credit as a result of the American Rescue Plan, the Louisiana Refundable Child Care also increased due to it being a percentage of the federal credit.
Small Town Health Professionals Credit -
- This credit is no longer available due to Act 342 ending December 31, 2020.
Conversion of Vehicle to Alternative Fuel -
- According to the IT540i instructions "Act 385 of the 2021 Regular Session accelerated the sunset date for the credit for the purchase of a qualifying new vehicle or for vehicle conversions to alternative fuel usage to July 1, 2021. "
COVID-19 Relief Benefits -
- Act 54 of the 2021 Legislative Session gives an exemption for any qualified disaster relief benefit provided by the state or federal government if the relief benefit was included in the taxpayer's Federal Adjusted Gross Income.
For more information regarding the 2021 tax law changes, please see the instructions for Form IT504i.