The Senate on Monday endorsed a tax credit for the interest on certain higher education loans.
The Senate voted 28-5 for the legislation that would provide for the tax break on school loans for those seeking advanced degrees, such as going to medical or law school.
State Sen. David Heitmeier, D-New Orleans, said the legislation is aimed at keeping Louisiana’s “best and brightest kids here.” Keeping one doctor practicing in Louisiana would create about 12 jobs, he said.
Heitmeier said the tax credit would cost the state an estimated $6.4 million a year.
Before approving the measure, the Senate added a provision under which there would have to be certification of the tax break’s “revenue neutrality” before its implementation.
Heitmeier said he did not have a problem with the condition pushed by state Sen. Robert Adley, R-Benton.
“The intention for tax incentives is to create economic development and stimulate the economy,” Heitmeier said. That’s the intent of his legislation, he said.
The credit would be available to taxpayers living in Louisiana.