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 506 Engrossed 2015 Regular Session James
Abstract: Establishes a pilot program for the use of combined unitary reporting for purposes of La.
corporation income tax and the method for determination of income subject to the tax.
Present law levies a tax on corporations at the following rates:
(1)4% of the first $25,000 of La. taxable income.
(2)5% of the amount of La. taxable income above $25,000 and less than $50,000
(3)6% of the amount of La. taxable income above $50,000 and less than $100,000
(4)7% of the amount of La. taxable income above $100,000 and less than $200,000
(5)8% on all La. taxable income above $200,000
Proposed law establishes a pilot program for the use of the combined unitary reporting method for
determination of income subject to the tax.
Proposed law requires the filing of informational returns by certain corporate entities to include
specific information regarding income of the members of the combined group.
Proposed law provides for the various methods of determining the apportionable income of
corporations and certain groups of corporations.
Proposed law requires the secretary of the Dept. of Revenue to prepare a report of findings based on
the pilot program, and to provide the report to the House Committee on Ways and Means and Senate
Committee on Revenue and Fiscal Affairs no later than 60 days before the 2017 R.S.
Applicable to taxable periods beginning on Jan. 1, 2015, and Jan. 1, 2016.
(Adds R.S. 47:297.733(C)) Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Change the period of time for the pilot program from tax periods beginning on or after
Jan. 1, 2016, to tax periods beginning on Jan. 1, 2015, and Jan. 1, 2016.
2. Add a requirement for the secretary of the Dept. of Revenue to prepare a report of
findings based on the pilot program, and to provide the report to the House Committee
on Ways and Means and Senate Committee on Revenue and Fiscal Affairs no later than
60 days before the 2017 R.S.