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2017 Regular Session
SENATE BILL NO. 174
BY SENATOR MORRELL
TAX/TAXATION. Provides for a deduction for individual and corporate income tax for
certain disaster payments. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 47:287.738(G), 293(9)(a)(i) and (10), relative to income tax
3 deductions; to provide for a deduction from individual and corporation income tax
4 for disaster recovery benefits received from state and federal agencies; to provide for
5 a transition rule; to provide for an effective date; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:287.738(G), 293(9)(a)(i) and (10) are hereby amended and
8 reenacted to read as follows:
9 §287.738. Other inclusions and exclusions from gross income
10 * * *
11 G. Deduction for hurricane recovery benefits. Seventy-two percent of any
12 Any gratuitous grant, loan, or other benefit directly or indirectly provided to a
13 taxpayer by a federal or state agency, a recovery authority, an instrumentality
14 of the state, or a hurricane recovery entity as defined in R.S. 47:293 shall be allowed
15 as a deduction if such disaster recovery benefit was included in federal adjusted
16 gross income.
17 * * *
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 174
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1 §293. Definitions
2 The following definitions shall apply throughout this Part, unless the context
3 requires otherwise:
4 * * *
5 (9)(a) "Tax table income", for resident individuals, means adjusted gross
6 income plus interest on obligations of a state or political subdivision thereof, other
7 than Louisiana and its municipalities, title to which obligations vested with the
8 resident individual on or subsequent to January 1, 1980, and less:
9 (i) Any gratuitous grant, loan, or other benefit directly or indirectly provided
10 to a taxpayer by a hurricane recovery entity, or federal or state agency or recovery
11 authority if such disaster recovery benefit was included in federal adjusted gross
12 income.
13 * * *
14 (10) "Tax table income", for nonresident individuals, means the amount of
15 Louisiana income, as provided in this Part, allocated and apportioned under the
16 provisions of R.S. 47:241 through 247, plus the total amount of the personal
17 exemptions and deductions already included in the tax tables promulgated by the
18 secretary under authority of R.S. 47:295, less the proportionate amount of the federal
19 income tax liability, excess federal itemized personal deductions, the temporary
20 teacher deduction, the recreation volunteer and volunteer firefighter deduction, the
21 construction code retrofitting deduction, any gratuitous grant, loan, or other benefit
22 directly or indirectly provided to a taxpayer by a hurricane recovery entity, or
23 federal or state agency or recovery authority if such disaster recovery benefit
24 was included in federal adjusted gross income, the exclusion provided for in R.S.
25 47:297.3 for S Bank shareholders, the deduction for expenses disallowed by I.R.C.
26 Section 280C, the deduction for net capital gains, and personal exemptions and
27 deductions provided for in R.S. 47:294. The proportionate amount is to be
28 determined by the ratio of Louisiana income to federal adjusted gross income. When
29 federal adjusted gross income is less than Louisiana income, the ratio shall be one
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1 hundred percent.
2 * * *
3 Section 2. The provisions of this Act shall apply to all taxable periods beginning on
4 or after January 1, 2016. In the event that a disaster recovery benefit from a state or federal
5 agency or recovery authority was included in a taxpayer's 2016 income subject to taxation,
6 the taxpayer may amend the 2016 state income tax return to deduct these benefits.
7 Section 3. This Act shall become effective upon signature by the governor or, if not
8 signed by the governor, upon expiration of the time for bills to become law without signature
9 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
10 vetoed by the governor and subsequently approved by the legislature, this Act shall become
11 effective on the day following such approval.
The original instrument was prepared by Leonore F. Heavey. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by James Benton.
DIGEST
SB 174 Engrossed 2017 Regular Session Morrell
Present law provides a deduction for state individual and corporation income tax for benefits
received from a hurricane recovery entity.
Proposed law broadens the deduction to include disaster benefits received from any state or
federal agency, recovery authority or instrumentality of the state.
Proposed law provides for a transition rule to allow taxpayers who received disaster recovery
benefits in 2016 to amend their 2016 tax returns if the benefits were included in taxable
income.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:287.738(G), 293(9)(a)(i) and (10))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Broadens the deduction to include benefits received from any instrumentality
of the state.
2. Makes technical changes.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.