HLS 15RS-1114 ENGROSSED
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(B), relative to corporate income tax; to
3 provide for the net operating loss deduction; to reduce net operating loss deduction
4 carry back and carry forward; to provide for an effective date; and to provide for
5 related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:246(E) and 287.86(B) are hereby amended and reenacted to read
8as follows:
9 §246. Corporations; deduction from net income from Louisiana sources
10 * * *
11 E. At For all returns filed on or after July 1, 2015, regardless of the taxable
12 year to which the return relates, at the election of the taxpayer a net operating loss
13 deduction as determined in Subsection B may be a net operating loss carry-back to
14 each of the three taxable years the taxable year immediately preceding the taxable
15 year of such loss. Such election shall be made in accordance with rules and
16 regulations prescribed by the Secretary of Revenue and Taxation. The first period
17 to which a net operating loss may be carried under this provision is taxable years
18 beginning on or after January 1, 1980.
19 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1114 ENGROSSED
HB NO. 426
1 §287.86. Net operating loss deduction
2 * * *
3 B. Net operating loss carrybacks and carryovers. The For all claims for this
4 deduction on any return filed on or after July 1, 2015, regardless of the taxable year
5 to which the return relates, the taxable years to which a Louisiana net loss may be
6 carried shall be:
7 (1) A net operating loss carryback to each of the three taxable years
8 the taxable year immediately preceding the taxable year of such loss, unless
9 carryback treatment is relinquished pursuant to R.S. 47:287.86(D).
10 (2) For losses incurred for taxable years beginning before January,
11 1984, a net operating loss carryover to each of the five taxable years
12 following the taxable year of such loss. For losses incurred for taxable years
13 beginning on or after January 1, 1984, a net operating loss carryover to each
14 of the fifteen taxable years following the taxable year of such loss. A net
15 operating loss carryover to each of the seven taxable years following the
16 taxable year of such loss.
17 * * *
18 Section 2. The provisions of this Act shall apply to all claims for this deduction on
19any return filed on or after July 1, 2015, regardless of the taxable year to which the return
20relates.
21 * * *
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 Engrossed 2015 Regular Session Hunter
Abstract: For any claim filed on or after July 1, 2015, regardless of the taxable year to
which the return relates, 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 15 years to seven years.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1114 ENGROSSED
HB NO. 426
Present law provides a deduction from La. 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 15 years to seven
years for any claim filed on or after July 1, 2015, regardless of the taxable year to which the
return relates.
Proposed law applies to all claims for the net operating loss deduction on any return filed
on or after July 1, 2015, regardless of the taxable year to which the return relates.
(Amends 47:246(E) and 287.86(B))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Delete application of proposed law to tax years beginning on or after Jan. 1,
2015.
2. Add applicability of proposed law to all returns filed on or after July 1, 2015,
regardless of the taxable year to which the return relates.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.