HLS 15RS-1689 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 821
BY REPRESENTATIVE LEGER
TAX/INCOME-INDIV/EXEMPT: Removes certain limitations on the individual income
tax deduction for net capital gains
1 AN ACT
2To amend and reenact R.S. 47:293(9)(a)(xvii), relative to the individual income tax; to
3 provide with respect to the deduction for net capital gains; to remove certain
4 limitations; to provide for an effective date; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:293(9)(a)(xvii) is hereby amended and reenacted to read as
7follows:
8 ยง293. Definitions
9 The following definitions shall apply throughout this Part, unless the context
10 requires otherwise:
11 * * *
12 (9)(a) "Tax table income", for resident individuals, means adjusted gross
13 income plus interest on obligations of a state or political subdivision thereof, other
14 than Louisiana and its municipalities, title to which obligations vested with the
15 resident individual on or subsequent to January 1, 1980, and less:
16 * * *
17 (xvii) Income from net capital gains, which shall be limited to gains
18 recognized and treated for federal income tax purposes as arising from on the sale
19 or exchange of an equity interest in or substantially all of the assets of a nonpublicly
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1689 ORIGINAL
HB NO. 821
1 traded corporation, partnership, limited liability company, or other business
2 organization commercially domiciled in this state.
3 * * *
4 Section 2. This Act shall become effective upon signature by the governor or, if not
5signed by the governor, upon expiration of the time for bills to become law without signature
6by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
7vetoed by the governor and subsequently approved by the legislature, this Act shall become
8effective on the day following such approval.
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 821 Original 2015 Regular Session Leger
Abstract: Removes the requirement that capital gains be treated as arising from the sale of
certain equity interests in order to be eligible for the individual income tax deduction
for net capital gains.
Present law provides for an individual income tax deduction for income from net capital
gains, which is limited to gains recognized and treated for federal income tax purposes as
arising from the sale or exchange of an equity interest in or substantially all of the assets of
a non-publicly traded corporation, partnership, limited liability company, or other business
organization commercially domiciled in this state.
Proposed law removes the limitation in present law that requires capital gains to be treated
for federal income tax purposes as arising from the sale or exchange of certain equity
interests. Proposed law retains the limitation in present law that requires the gains to be
recognized for federal income tax purposes on the sale or exchange of certain equity
interests.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:293(9)(a)(xvii))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.