DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 395 Original 2015 Regular Session Jay Morris
Abstract: Eliminates the three year carryback of the net operating loss deduction for purposes of
calculating corporate income tax liability.
Present law provides for imposition, computation, and payment of income tax for estates and
property held in trust. Present law further authorizes the net operating loss to be deducted from net
income in any of the 15 years immediately following the year in which the loss occurred.
Present law provides a deduction from Louisiana net income for a net operating loss to be carried
back three taxable years preceding the taxable year of such loss or carried over to each of the 15
taxable years following the taxable year of such loss.
Proposed law repeals the three year carryback provisions of present law.
Present law provides for refunds of overpayment of taxes, penalties, and interest. Further authorizes
a refund when La. tax overpayment results from application of a net operating loss carryback.
Proposed law retains present law but repeals provisions relative to net operating loss carry back.
Present law provides a three year prescriptive period within which a refund or credit shall be paid
and provides for suspension of the prescriptive period. Further provides a time table for prescription
when a refund or credit is attributable to net the operating loss deduction carryback election.
Proposed law retains present law but repeals provisions relative to the net operating loss deduction
carryback election.
(Amends R.S. 47:246(E) and (G), 287.86(A), (B)(1), (C), (D), (E), and (I), 1621(B)(7), and
1623(E)(intro. para.); Repeals R.S. 47:287.86(F), (G), and (H) and 1623(C) and (D))