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 402 Engrossed 2015 Regular Session Stokes
Abstract: Adds requirements relative to eligibility for the individual income tax credit for taxes
paid to another state regarding property or activity located in La.
Present law authorizes an individual income tax credit in an amount equal to income taxes which
were paid for the same taxable period to another state on income which is subject to La. tax.
Proposed law retains present law and adds the following requirements for eligibility for the tax
credit:
(1)The credit is allowed if the other state provides a similar credit for La. income taxes paid on
income derived from property located in La., services rendered in La., and business
transacted in La.
(2)The credit shall be limited to the lesser of the proportional credit limitation amount or the
actual tax paid to the other state. The "proportional credit limitation amount" means the
amount of La. income tax that would have been imposed if the income earned in the other
state had been earned in La.
(3)The credit shall not be allowed for income taxes paid to a state that allows a nonresident a
credit against the income taxes imposed by that state for taxes paid or payable to the state of
residence.
Effective July 1, 2015, and applicable to all claims for the tax credit on any tax return filed on or
after July 1, 2015, regardless of the taxable year to which the return relates.
(Adds R.S. 47:33(A)(4)-(6)) Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Add services rendered in La. and business transacted in La. as income generating
activities the taxes upon which are subject to the provisions of proposed law.
2. Change applicability of proposed law from taxable periods beginning Jan. 1, 2015, to all
claims for the tax credit on any tax return filed on or after July 1, 2015, regardless of the
taxable year to which the return relates.