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 50 Original 2016 Second Extraordinary Session Montoucet
Abstract: Reduces the individual income tax deduction for net capital gains.
Present law provides for a deduction from tax table income for income derived from net capital
gains, which shall be limited to gains recognized and treated for federal tax purposes as arising from
the sale or exchange of an equity interest in or substantially all of the assets of a nonpublicly traded
corporation, partnership, limited liability company, or other business organization commercially
domiciled in the state.
Proposed law reduces the amount of the deduction in present law from 100% of the amount of the
gains recognized to 50% of the gains recognized.
Applicable to taxable periods beginning on or after Jan. 1, 2016.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:293(9)(a)(xvii))