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Regular Session, 2013
SENATE BILL NO. 37
BY SENATOR GARY SMITH
TAX/TAXATION. Authorizes for corporations a net operating loss carryback of 5 years if
the loss is attributable to Hurricane Isaac. (gov sig)
AN ACT1
To amend and reenact R.S. 47:246(E) and 287.86(B)(1), relative to income tax; to authorize2
a net operating loss deduction carry back for corporations of five taxable years if the3
loss is attributable to Hurricane Isaac; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:246(E) and 287.86(B)(1) are hereby amended and reenacted to6
read as follows:7
§246. Corporations; deduction from net income from Louisiana sources8
* * *9
E.(1)(a) At Except as provided for in Subparagraph (b) of this10
Paragraph, at the election of the taxpayer a net operating loss deduction as11
determined in Subsection B may be a net operating loss carry back to each of the12
three taxable years preceding the taxable year of such loss.13
(b) At the election of the taxpayer a net operating loss deduction as14
determined in Subsection B may be a net operating loss carry back to each of15
the five taxable years preceding the taxable year of such loss, if the allocable loss16
for the tax year is attributable to Hurricane Isaac. An allocable loss is17 SB NO. 37
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attributable to Hurricane Isaac if a portion of the allocable loss is attributable1
to business activity or business property of the taxpayer located in any parish2
which is in whole or in part in the area with respect to which a disaster has been3
declared by the President of the United States before September 10, 2012, under4
Section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance5
Act by reason of Hurricane Isaac.6
(2) Such election shall be made in accordance with rules and regulations7
prescribed by the Secretary of Revenue and Taxation. The first period to which a net8
operating loss may be carried under this provision is taxable years beginning on or9
after January 1, 1980. 10
* * *11
§287.86. Net operating loss deduction12
* * *13
B. Net operating loss carrybacks and carryovers. The taxable years to which14
a Louisiana net loss may be carried shall be:15
(1)(a) A Except as provided for in Subparagraph(b) of this Paragraph,16
a net operating loss carryback to each of the three taxable years preceding the taxable17
year of such loss, unless carry back treatment is relinquished pursuant to R.S.18
47:287.86(D).19
(b) A net operating loss carry back to each of the five taxable years20
preceding the taxable year of such loss if such loss is attributable to Hurricane21
Isaac, unless carry back treatment is relinquished pursuant to R.S.22
47:287.86(D). A net operating loss is attributable to Hurricane Isaac if a23
portion of the Louisiana net loss for the taxable year is attributable to business24
activity or business property of the taxpayer located in any parish which is in25
whole or in part in the area with respect to which a disaster has been declared26
by the President of the United States before September 10, 2012, under Section27
401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act by28
reason of Hurricane Isaac.29 SB NO. 37
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* * *1
Section 2. The provisions of this Act shall be applicable to all tax years beginning2
January 1, 2012, and thereafter.3
Section 3. This Act shall become effective upon signature by the governor or, if not4
signed by the governor, upon expiration of the time for bills to become law without signature5
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If6
vetoed by the governor and subsequently approved by the legislature, this Act shall become7
effective on the day following such approval.8
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Gary Smith (SB 37)
Present law authorizes a net operating loss carryback to each of the three taxable years
preceding the taxable year of such loss.
Proposed law authorizes for corporations a net operating loss carryback of five years if the
loss is "attributable to Hurricane Isaac". A loss is "attributable to Hurricane Isaac" if a
portion of the Louisiana net loss for the taxable year is attributable to business activity or
business property of the taxpayer located in any parish which is in whole or in part in the
area with respect to which a disaster has been declared by the President of the United States
before September 10, 2012, under Section 401 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act by reason of Hurricane Isaac.
Applicable to all tax years beginning January 1, 2012 and thereafter.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:246(E) and 287.86(B)(1))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Removes provisions regarding other federal tax benefits and the federal
income tax deduction.