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 116 Engrossed 2016 First Extraordinary Session Ivey
Abstract: Provides for the order of loss years from which a net operating loss may be carried over
in certain circumstances.
Present law provides for a deduction from corporate income tax for 72% of the amount of net
operating loss incurred in La. and authorizes carryforward of excess net operating loss for a period
of 20 years.
Present law requires net operating loss to be applied for purposes of reducing La. net income in order
of the year of the loss, beginning with the earliest taxable year.
Proposed law changes present law by requiring net operating loss from the most recent taxable year
to be applied first.
Effective Jan. 1, 2017.
(Amends R.S. 47:287.86(C)(2))