Tax credit for parents of private school students to increase in 2024

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Beginning next year parents who send their kids to private school will receive an increase of $5,000 to $6,000 tax break per child in Louisiana. The governor signed the legislation that Metairie Representative Laurie Schlegel authored.

“These taxpayers save the state over a half-billion dollars a year because the state isn’t educating their children, but they’re still paying for their taxes,” said Schlegel.

The current deduction costs the state about $22-millon annually and that will increase to $24.2 million in 2024. Schlegel said the tax credit actually saves the state half a billion annually. When the bill was before Senate Revenue during the session Pineville Senator Jay Luneau questioned Schlegel about how the additional $1,000 tax credits will impact the state budget.

“Well, that savings has been there for a long time and that’s not paying for this. How do we pay for this? Where do we come up with $2.2 million a year to pay for this?” Luneau asked.

“I just believe in giving some tax relief to these taxpayers,” Schlegel responded.

The $5,000 tax break was added in 2008 and Schlegel said parents who send their child to private school pay on average $7,200 a year and considering inflation the tax break should increase. DeRidder Senator Mike Reese also asked how the loss of additional funds will impact the state’s budget but agreed with the bill’s intent.

“I think it’s a modest increase to address a serious problem which is that every child in the state ought to have the best access to the best school possible immediately. And I think this is one of the tools that helps parents get them there,” said Reese.

The $1,000 increase is the first since the break’s creation 15 years ago.

 

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