HLS 181ES-280 ORIGINAL
2018 First Extraordinary Session
HOUSE BILL NO. 30
BY REPRESENTATIVE JACKSON
TAX/CORP INCOME: Excludes certain dividend income from the calculation of gross
income as determined under federal law for purposes of calculating state corporation
income tax (Item #4)
1 AN ACT
2To amend and reenact R.S. 47:287.71(B)(6)(b)(ii)(introductory paragraph) and to enact R.S.
3 47:287.71(B)(6)(b)(ii)(cc), relative to corporate income tax; to provide for
4 modifications to gross income; to authorize the exclusion of certain gross income
5 determined under federal law from the calculation of state corporate income tax; to
6 provide for certain definitions; to provide for applicability; to provide for an
7 effective date; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:287.71(B)(6)(b)(ii)(introductory paragraph) is hereby amended
10and reenacted and R.S. 47:287.71(B)(6)(b)(ii)(cc) is hereby enacted to read as follows:
11 ยง287.71. Modifications to federal gross income
12 * * *
13 B. There shall be subtracted from gross income determined under federal
14 law, unless already excluded therefrom, the following items:
15 * * *
16 (6)
17 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 181ES-280 ORIGINAL
HB NO. 30
1 (b) Amounts received as dividend income by any member of a regulated
2 group of entities. For purposes of this Subparagraph, the following terms shall have
3 the meanings ascribed to them:
4 * * *
5 (ii) "Regulated group of entities" shall mean a group comprised of a parent
6 entity and any other legal entities in which the parent entity directly or indirectly
7 owns at least fifty percent of either the vote or the value of the stock, membership
8 interest, partnership interest, or other ownership interest and in which either one any
9 of the following applies:
10 * * *
11 (cc) One or more of the members of the group is regulated by the Louisiana
12 Public Service Commission as a pipeline carrier and at least one of the non-pipeline
13 carrier members of the group not regulated by the Louisiana Public Service
14 Commission has at any time been party to a contract entered into under the authority
15 of Article 7, Section 21(F) of the Louisiana Constitution.
16 * * *
17 Section 2. The provisions of this Act shall be applicable to all taxable periods
18beginning on and after January 1, 2017.
19 Section 3. This Act shall become effective on July 1, 2018.
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 30 Original 2018 First Extraordinary Session Jackson
Abstract: Defines "regulated group of entities" for purposes of excluding dividend income
in the determination of gross income for purposes of calculating state corporate
income tax.
Present law excludes amounts received as dividend income by any member of a regulated
group of entities from the calculation of gross income as determined under federal law.
Present law defines "regulated group of entities" as a group comprised of a parent entity and
any other legal entities in which the parent entity directly or indirectly owns at least 50% of
either the vote or the value of the stock, membership interest, partnership interest, or other
ownership interest and in which either one of the following applies:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 181ES-280 ORIGINAL
HB NO. 30
(1)One or more of the members of the group is regulated by the La. Public Service
Commission (LPSC) as a telecommunications service provider and at least one of the
members of the group has at any time been party to a contract entered into under the
authority of present law.
(2)One or more of the members of the group is regulated by the LPSC as an electric
utility.
Proposed law retains present law but adds a qualifying condition for a "regulated business
entity" to be eligible to exclude dividend income for purposes of determining gross income
that one or more of the members of the group is regulated by the LPSC as a pipeline carrier
and at least one of the non-pipeline carrier members of the group not regulated by the LPSC
has at any time been party to a contract entered into under the authority of the present
constitution.
Applicable to all taxable periods beginning on and after Jan. 1, 2017.
Effective July 1, 2018.
(Amends R.S. 47:287.71(B)(6)(b)(ii)(intro. para.); Adds R.S. 47:287.71(B)(6)(b)(ii)(cc))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.