During a recent meeting of the Louisiana Legislature, significant progress was made on two key pieces of legislation aimed at enhancing financial support for families with children who have disabilities. The committee unanimously approved Senate Bill 65, which addresses various fiscal matters, and moved forward with Senate Bill 118, which seeks to amend the existing ABLE Act.

Senate Bill 118, introduced by Chairman Fall, aims to provide a tax deduction for contributions to ABLE accounts, which are designed to help families save for the future of children with disabilities. These accounts, similar to 529 college savings plans, allow parents to set aside funds without jeopardizing their child's eligibility for government benefits. Currently, the first $100,000 in assets within an ABLE account is exempt from being counted against these benefits.

Chairman Fall emphasized the importance of fairness in financial support, noting that families with children who cannot attend college should have access to similar tax benefits as those who can. The proposed legislation would allow a modest income tax deduction of $2,400 per individual or $4,800 for married couples, aligning ABLE accounts with the existing START accounts for education savings. The fiscal impact of this change is expected to be minimal, with an estimated revenue loss of less than $100,000.

The committee's swift approval of these bills reflects a commitment to improving the financial landscape for families facing the challenges of raising children with disabilities. As the legislation moves forward, it is anticipated that these changes will provide much-needed support and resources for affected families across Louisiana.