HLS 15RS-1114 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 426
BY REPRESENTATIVE HUNTER
TAX/CORP INCOME: Provides with respect to the net operating loss deduction for
purposes of the corporate income tax
1 AN ACT
2To amend and reenact R.S. 47:246(E) and 287.86(A) and (B), relative to corporate income
3 tax; to provide for the net operating loss deduction; to reduce net operating loss
4 deduction carry back and carry forward; to provide for an effective date; and to
5 provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:246(E) and 287.86(A) and (B) are hereby amended and reenacted
8to read as follows:
9 §246. Corporations; deduction from net income from Louisiana sources
10 * * *
11 E. At For losses incurred for taxable years prior to January 1, 2015, at the
12 election of the taxpayer, a net operating loss deduction as determined in Subsection
13 B of this Section, may be a net operating loss carry-back to each of the three taxable
14 years preceding the taxable year of such loss. For losses incurred for taxable years
15 beginning on or after January 1, 2015, at the election of the taxpayer, a net operating
16 loss deduction as determined by Subsection B of this Section may be a net operating
17 loss carry-back to one taxable year preceding the taxable year of such loss. Such
18 election shall be made in accordance with rules and regulations prescribed by the
19 Secretary of Revenue and Taxation. The first period to which a net operating loss
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1114 ORIGINAL
HB NO. 426
1 may be carried under this provision is taxable years beginning on or after January 1,
2 1980.
3 * * *
4 §287.86. Net operating loss deduction
5 A. Deduction from Louisiana net income. Except as otherwise provided, for
6 losses incurred for taxable years beginning on or after January 1, 2015, there shall
7 be allowed for the taxable year an adjustment reducing Louisiana net income in an
8 amount equal to the aggregate of:
9 (1) The net operating loss carryovers to such year, plus.
10 (2) The net operating loss carrybacks to such year.
11 NOTE: Paragraph (B)(1) effective when the 113
th
Congress of the U.S.
12 grants a similar benefit to taxpayers under federal income tax law and
13 applicable to taxable years beginning August 1, 2011, and thereafter.
14 B. Net operating loss carrybacks and carryovers. The taxable years to which
15 a Louisiana net loss may be carried shall be:
16 (1) A For losses incurred for taxable years beginning on or after January 1,
17 1984, and before January 1, 2015, a net operating loss carryback to each of the three
18 taxable years preceding the taxable year of such loss, unless carryback treatment is
19 relinquished pursuant to R.S. 47:287.86(D).
20 (2) For losses incurred for taxable years beginning on or after January 1,
21 2015, a net operating loss carryback to the taxable year preceding the taxable year
22 of such loss, unless carryback treatment is relinquished pursuant to R.S. 287.86(D).
23 (2) (3) For losses incurred for taxable years beginning before January 1,
24 1984, a net operating loss carryover to each of the five taxable years following the
25 taxable year of such loss.
26 (4) For losses incurred for taxable years beginning on or after January 1,
27 1984, and before January 1, 2015, a net operating loss carryover to each of the fifteen
28 taxable years following the taxable year of such loss.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1114 ORIGINAL
HB NO. 426
1 (5) For losses incurred for taxable years beginning on or after January 1,
2 2015, a net operating loss carryover to each of the seven taxable years following the
3 taxable year of such loss.
4 * * *
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 426 Original 2015 Regular Session Hunter
Abstract: Reduces the carryback of the net operating loss deduction for purposes of
calculating corporate income tax liability from three years to one year and reduces
the carryforward from fifteen years to seven years.
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 retains present law but reduces the carryback of the net operating loss
deduction from three years to one year and reduces the carryforward from fifteen years to
seven years.
(Amends 47:246(E) and 287.86(A) and (B))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.