Below are some of the tax law changes the state of Louisiana has made for tax year 2025:
Form Changes
ITIN check box - The new check box was added on the face of the tax return for taxpayers with an Individual Taxpayer Identification Number (ITIN).
Exemptions - previously Lines 6A, 6B, 6D, 6E, 6F - Act 11 of the 2024 Third Extraordinary Legislative Session repealed the exemption for additional $1,000 deduction for persons 65 and older, blind, and dependents. These lines have been removed.
Schedule C- Nonrefundable Priority 1 Credits
Bone Marrow (Code 120) - The code is no longer available on the return due to the repeal of Act 11 of the 2024 Third Extraordinary Legislative Session.
Donations to Eligible Maternal Wellness Center (Code 190) - Provides a nonrefundable credit equal to 50 percent of the donation made to an eligible maternal wellness center during the taxable year.
Schedule D - Donation Schedule
The following donations were removed:
- Louisiana State Troopers Charities, Inc.
- Louisiana Coalition Against Domestic Violence, Inc
- University of New Orleans Foundation
- Southeastern Louisiana University Foundation
- Holden's Hope
- Louisiana Pet Overpopulation
Schedule E- Adjustments to Income
Add back of federal depreciation previously accelerated via state bonus - Allows businesses to elect a bonus depreciation deduction, also known as full expensing, for qualified property placed into service during the taxable year.
Annual Retirement Income Exemption for Taxpayers 65 or older - The annual retirement exemption for individuals age 65 and older has increased to $12,000.
IRC280C Expense - The code is no longer available due to the repeal of Act 11 of the 2024 Third Extraordinary Legislative Session.
Louisiana Fortify Homes Program Grants - Provides an exclusion of grants received from the Louisiana Fortify Homes Program.
Bonus Depreciation - Allows businesses to elect a bonus depreciation deduction, also known as full expensing, to deduct 100% of the cost for qualified property placed into service during the taxable year.
Schedule F- Refundable Priority 2 Credits
School Readiness Child Care Directors and Staff - Eligible child care directors and child care staff may qualify for this credit. The amount of the credit is adjusted each year if there is an increase in the Consumer Price Index Urban (CPI-U). The credit amount for 2025 can be found here.
Prison Industry Enhancement - The code is no longer available on the return due to the repeal of Act 11 of the 2024 Third Extraordinary Legislative Session.
Schedule J- Nonrefundable Priority 3 Credits
School Readiness and Child Care Credit Carried Forward From 2020 through 2024 - These credits for taxpayers whose federal AGI exceeds $25,000 cannot be refunded. However, any unused amounts from the credit can be used over the next 5 years.
Louisiana Fortified Roof (Code 466) - Provides a credit for Louisiana residents who install a fortified roof, as certified by the Insurance Institute for Business and Home Safety, on their primary residence. The credit is equal to the full amount of qualified expenses, up to $10,000 per residence.
The following credits are no longer available:
- Owner of Accessible and Barrier-free Home (Code 221)
- New Jobs Credit (Code 224)
- Eligible Re-entrants (Code 228)
- Apprenticeship (2007 - Code 236)
Additional Information
For more information regarding the 2025 tax law changes, please click here.