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Louisiana tax breaks approved

Measures that will affect 2008 tax returns:......... • An income tax credit of up to $12,500 to offset the cost of buying and installing systems that produce electricity from solar or wind energy.

After two months of debate at the Capitol, lawmakers have approved tax relief that will benefit a wide range of Louisiana residents and businesses.

Republicans, disappointed that Gov. Kathleen Blanco won approval to spend over $30 billion, were pleased they were able to push through more tax breaks than the governor wanted.

Some of the tax breaks would affect 2007 tax forms, others won't take effect until next year. Blanco said she hasn't decided yet whether she would veto any.

Her biggest question: whether to veto a once-minor tax break for solar and wind power producers.

Lawmakers amended the bill so that it would now equal state tax revenue reductions of well over $100 million. The bill includes a $100 million tax credit for homeowners, tied to their property insurance costs, and a repeal of the state's gift and death taxes. It would not take effect until after Blanco leaves office.

Here's a look at tax breaks approved by the Legislature and awaiting Blanco's approval or veto:

• The biggest tax break would reinstate itemized deductions that were eliminated in 2003.

Taxpayers who itemize their state returns would again be able to deduct home mortgage interest, contributions to charities and... more [truncated due to possible copyright]  

After two months of debate at the Capitol, lawmakers have approved tax relief that will benefit a wide range of Louisiana residents and businesses.

Republicans, disappointed that Gov. Kathleen Blanco won approval to spend over $30 billion, were pleased they were able to push through more tax breaks than the governor wanted.

Some of the tax breaks would affect 2007 tax forms, others won't take effect until next year. Blanco said she hasn't decided yet whether she would veto any.

Her biggest question: whether to veto a once-minor tax break for solar and wind power producers.

Lawmakers amended the bill so that it would now equal state tax revenue reductions of well over $100 million. The bill includes a $100 million tax credit for homeowners, tied to their property insurance costs, and a repeal of the state's gift and death taxes. It would not take effect until after Blanco leaves office.

Here's a look at tax breaks approved by the Legislature and awaiting Blanco's approval or veto:

• The biggest tax break would reinstate itemized deductions that were eliminated in 2003.

Taxpayers who itemize their state returns would again be able to deduct home mortgage interest, contributions to charities and certain medical expenses. Economists estimate that 20 percent of taxpayers from the upper and middle classes itemize their returns and could benefit from the deductions.

• Lawmakers approved an annual "sales tax holiday" for shoppers every August, intended mainly as a break for parents buying school supplies.

• Milk producers won corporate tax credits that would take effect depending on the price of milk, as monitored by the federal government. Each dairy could claim between $5,000 and $30,000 in credits per year.

Measures that will affect 2008 tax returns:

• A new tax credit, which Blanco supports, for employed taxpayers who make less than $40,000 per year.

• Repeal of the remnants of Louisiana's "death tax," which applies only to people who inherit money.

• Repeal of Louisiana's 2 to 3 percent tax levied on certain gifts (from parents to children, for example).

• Tax credits for producers of Broadway-style shows.

• An income tax credit of up to $12,500 to offset the cost of buying and installing systems that produce electricity from solar or wind energy.

• Tax credits that would go to parents of private school students, to offset tuition costs.

• Tax credits, supported by Blanco, for day care centers and parents who enroll their children in certain day care facilities.

 



Source: http://www.sunherald.com/bu...

JUN 30 2007
http://www.windaction.org/posts/9787-louisiana-tax-breaks-approved
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