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)]
CONFERENCE COMMITTEE REP ORT DIGEST
HB 57 2016 First Extraordinary Session Stokes
Keyword and oneliner of the instrument as it left the House
TAX CREDITS: Repeals three-year sunset on certain eligibility requirements relative to the income
tax credit for net taxes paid to other states (Item #13)
Report adopts Senate amendments to:
1. Add a provision that authorizes individual partners or members of entities who pay another
state's entity level tax that does not have a capital component, to take the credit for their
proportionate share of the entity level tax paid on or after Jan. 1, 2016.
Report amends the adopted Senate amendment to:
1. Change the beginning date for which taxes paid qualify for the credit from Jan. 1, 2016 to
Jan. 1, 2018.
2. Change the amount of the credit from 100% of the proportionate share paid to 40% of the
proportionate share paid.
3. Change the income upon which the state's entity level tax is based from the entity's federal
gross income to the entity's federal taxable income.
4. Prohibit a credit for state entity level tax if the proportionate share of the related income and
the tax paid to the other state is not included in the calculation of La. taxable income reported
on the La. return of the individual partner or member.
Digest of the bill as proposed by the Conference Committee
Present law authorizes an individual income tax credit in an amount equal to income taxes paid for
the same taxable period to another state on income that is subject to La. tax if the other state
authorizes a similar credit.
Present law authorizes a credit for three years in an amount of the lesser of the actual amount of tax paid to the other state or the amount of La. income tax that would have been imposed if the income
had been earned in La.
Present law sunsets in three years, those provisions of present law that require the state to which
income taxes were paid to authorize a similar credit and that the credit amount be the lesser of the
actual amount of tax paid to the other state or the amount of La. income tax that would have been
imposed if the income had been earned in La.
Proposed law repeals the three-year sunset provisions of present law thereby making the provisions
of present law permanent.
Proposed law authorizes the credit in present law for individual partners or members of entities who
pay another state's entity level tax that does not have a capital component, but is based solely on the
income in the entity's federal taxable income, to take the credit for 40% of their proportionate share
of the entity level tax paid on or after Jan. 1, 2018.
Proposed law prohibits a credit under proposed law for a state's entity level tax if the proportionate
share of the related income and the tax paid to the other state is not included in the calculation of La.
taxable income reported on the La. return of the individual partner or member.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends §4 of Act No. 109 of the 2015 R.S.; Adds R.S. 47:33(A)(7); Repeals §2 of Act No. 109
of the 2015 R.S.)