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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2013
SENATE BILL NO. 37
BY SENATORS GARY SMITH AND BROWN AND REPRESENTATI VE
SCHEXNAYDER
TAX/TAXATION. Authorizes for corporations a net operating loss carryback of 5 years if
the loss is attributable to Hurricane Isaac. (see Act)
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 carryback 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 carryback to12
each of the three taxable years preceding the taxable year of such loss.13
(b) Upon certification by the Department of Revenue, at the election of14
the taxpayer a net operating loss deduction as determined in Subsection B may15
be a net operating loss carryback to each of the five taxable years preceding the16
taxable year of such loss, if the allocable loss for the tax year is attributable to17 SB NO. 37
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Hurricane Isaac. The aggregate amount of net operating loss carryback1
deduction allowed under this Subparagraph for all taxpayers during any2
taxable year shall not exceed ten million dollars. An allocable loss is3
attributable to Hurricane Isaac if a portion of the allocable loss is attributable4
to business activity or business property of the taxpayer located in any parish5
which is in whole or in part in the area with respect to which a disaster has been6
declared by the president of the United States before September 10, 2012, under7
Section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance8
Act by reason of Hurricane Isaac.9
(2) Such election shall be made in accordance with rules and regulations10
prescribed by the Secretary of the Department of Revenue and Taxation. The first11
period to which a net operating loss may be carried under this provision is taxable12
years beginning on or after January 1, 1980. 13
* * *14
§287.86. Net operating loss deduction15
* * *16
B. Net operating loss carrybacks and carryovers. The taxable years to which17
a Louisiana net loss may be carried shall be:18
(1)(a) A Except as provided for in Subparagraph(b) of this Paragraph,19
a net operating loss carryback to each of the three taxable years preceding the taxable20
year of such loss, unless carry back carryback treatment is relinquished pursuant to21
R.S. 47:287.86(D).22
(b) A net operating loss carryback to each of the five taxable years23
preceding the taxable year of such loss if such loss is attributable to Hurricane24
Isaac, unless carryback treatment is relinquished pursuant to R.S. 47:287.86(D).25
A net operating loss is attributable to Hurricane Isaac if a portion of the26
Louisiana net loss for the taxable year is attributable to business activity or27
business property of the taxpayer located in any parish which is in whole or in28
part in the area with respect to which a disaster has been declared by the29 SB NO. 37
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
president of the United States before September 10, 2012, under Section 401 of1
the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason2
of Hurricane Isaac.3
* * *4
Section 2. The provisions of this Act shall be applicable to all tax years beginning5
August 1, 2011, and thereafter.6
Section 3. The provisions of this Act shall become effective if, as, and when the7
113th Congress of the United States grants a similar benefit to taxpayers under federal8
income tax law. The secretary of the Department of Revenue shall provide written9
notification to the Louisiana State Law Institute if such a benefit is enacted.10
The original instrument was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Jerry G. Jones.
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, upon certification by the Department of Revenue, for corporations
a net operating loss carryback of five years if the loss is "attributable to Hurricane Isaac".
Provides that the aggregate amount of net operating loss carryback deduction allowed for
all taxpayers during any taxable year shall not exceed ten million dollars.
Proposed law provides that 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 August 1, 2011, and thereafter.
Effective if, as, and when the 113th Congress of the United States grants a similar benefit
to taxpayers under federal income tax law.
(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. SB NO. 37
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Effective date revised to become effective if, as, and when the 113th
Congress of the United States grants a similar benefit to taxpayers under
federal income tax law.
Senate Floor Amendments to reengrossed bill
1. Adds upon certification by the Dept. of Revenue.
2. Adds that aggregate amount of net operating loss carryback deduction
allowed for all taxpayers during any taxable year shall not exceed ten
million dollars.
3. Changes tax year applicability from Jan. 1, 2012, and thereafter to Aug. 1,
2011, and thereafter.
4. Bureau.