HLS 161ES-216 REENGROSSED
2016 First Extraordinary Session
HOUSE BILL NO. 95
BY REPRESENTATIVE LEGER
TAX/INCOME TAX: Repeals the state income tax deduction for federal income taxes paid
for purposes of calculating corporate income taxes (Item #17)
1 AN ACT
2To amend and reenact R.S. 47:241 and 287.69 and to repeal R.S. 47:55(5), 287.79, 287.83,
3 287.85, and 287.442(B)(1), relative to income tax; to provide relative to the
4 deductibility of federal income taxes; to repeal deductibility of federal income taxes
5 paid for purposes of calculating corporate income taxes; to provide for applicability;
6 to provide for an effective date; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:241 and 287.69 are hereby amended and reenacted to read as
9follows:
10 §241. Net income subject to tax
11 The net income of a nonresident individual or a corporation subject to the tax
12 imposed by this Chapter shall be the sum of the net allocable income earned within
13 or derived from sources within this state, as defined in R.S. 47:243, and the net
14 apportionable income derived from sources in this state, as defined in R.S. 47:244,
15 less the amount of federal income taxes attributable to the net allocable income and
16 net apportionable income derived from sources in this state. The amount of federal
17 income taxes to be so deducted shall be that portion of the total federal income tax
18 which is levied with respect to the particular income derived from sources in this
19 state to be computed in accordance with rules and regulations of the collector of
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 161ES-216 REENGROSSED
HB NO. 95
1 revenue. Proper adjustment shall be made for the actual tax rates applying to
2 different classes of income and for all differences in the computation of net income
3 for purposes of federal income taxation as compared to the computation of net
4 income under this Chapter. Where the allocation of the tax is to be based on a ratio
5 of the amount of net income of a particular class, both the numerator and the
6 denominator of the fraction used in determining the ratio shall be computed on the
7 basis that such net income is determined for federal income tax purposes.
8 * * *
9 §287.69. Louisiana taxable income defined
10 "Louisiana taxable income" means Louisiana net income, after adjustments,
11 less the federal income tax deduction allowed by R.S. 47:287.85. "After
12 adjustments" means after the application of the net operating loss adjustment allowed
13 by R.S. 47:287.86.
14 Section 2. R.S. 47:55(5), 287.79, 287.83, 287.85, and 287.442(B)(1) are hereby
15repealed in their entirety.
16 Section 3. The provisions of this Act shall be applicable for all taxable periods
17beginning on and after January 1, 2017.
18 Section 4. This Act shall take effect and become operative if and when the proposed
19amendment of Article VII of the Constitution of Louisiana contained in the Act which
20originated as House Bill No. 31 of the 2016 First Extraordinary Session of the Legislature
21is adopted at a statewide election and becomes effective.
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 95 Reengrossed 2016 First Extraordinary Session Leger
Abstract: Repeals the deductibility of federal income taxes paid for purposes of calculating
corporate income taxes.
Present constitution and present law authorize a state deduction for federal income taxes paid
for purposes of computing income taxes for the same period.
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CODING: Words in struck through type are deletions from existing law; words underscored
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HB NO. 95
Proposed law repeals the present law provisions that authorize a state deduction for federal
income taxes paid for purposes of calculating corporate income taxes.
Applicable for all taxable periods beginning on or after Jan. 1, 2017.
Effective if and when House Bill No. 31 of the 1st E.S. of 2016 is enacted and becomes
effective.
(Amends R.S. 47:241 and 287.69; Repeals R.S. 47:55(5), 287.79, 287.83, 287.85, and
287.442(B)(1))
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Restore provisions of present law relative to the deductibility of federal income
taxes paid for purposes of calculating individual income tax.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.