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 13 Reengrossed 2018 Second Extraordinary Session Jackson
Abstract: Provides for the applicability of claiming reduced amounts of the various reductions in
corporate income tax exclusions and deductions for taxable years beginning in calender years
2015, 2016, and 2017.
Previous Act of the legislature (Act No. 123 of 2015 R.S.) temporarily reduced certain allowable
exclusions and deductions from corporate income tax. Present law provides that those exclusions
and deductions return to their former rates effective July 1, 2018.
Proposed law retains the present law reinstatement of the full amount of the following deductions
and exclusions beginning July 1, 2018:
(1)Exclusion of funds received by a corporation from a governmental entity to subsidize the
operation and maintenance of a public transportation system; 72% exclusion sunsets on June
30, 2018, and 100% is reinstated beginning July 1, 2018. (R.S. 47:51)
(2)Deduction of net operating loss of a corporation; 72% deduction is retained through June 30,
2023. (R.S. 47:246)
(3)Exclusion of funds received from a governmental entity to subsidize the operation and
maintenance of a public transportation system; 72% deduction sunsets on June 30, 2018, and
100% is reinstated beginning July 1, 2018. (R.S. 47:287.71)
(4)Deduction of various corporate expenses that are not allowed as deductions by I.R.C. Section
280C; 72% deduction sunsets on June 30, 2018, and 100% is reinstated beginning July 1,
2018. (R.S. 47:287.73)
(5)Deduction of net operating loss incurred in La.; 72% deduction sunsets on June 30, 2018, and
100% is reinstated beginning July 1, 2018. (R.S. 47:287.86)
(6)Deduction of an amount equal to interest and dividend income included on the federal
income tax return; 72% deduction sunsets on June 30, 2018, and 100% is reinstated
beginning July 1, 2018. (R.S. 47:287.738)
(7)Exemption from corporation income and franchise taxes for certain La. Community
Development Institutions; a four-year exemption is retained through June 30, 2018, and
100% is reinstated beginning July 1, 2018. (R.S. 51:3092) Proposed law clarifies that the reduced amounts of corporate deductions and exclusions in present
law apply to an exclusion from taxable income and a claim for a deduction made on the return for
each of the taxable years beginning during the calendar years of 2015, 2016, and 2017, regardless
of the date the original or any amended return for the period is filed.
Proposed law further provides that if a return is filed on or after July 1, 2015, regardless of the
taxable year to which the return relates, then any portion of an exclusion or deduction disallowed
under the provisions of present law shall be prohibited from being claimed or allowed as an
exclusion or deduction under the provisions of present law that become effective on July 1, 2018,
on an amended return for the same taxable period filed on or after July 1, 2018.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends ยง6 of Act No. 123 of 2015 R.S.)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Delete provisions making the reduction in the amount of the tax credit permanent.
2. Continue effectiveness of the reduction in the amount of certain corporate income tax
deductions and exclusions through June 30, 2023.
The House Floor Amendments to the engrossed bill:
1. Delete provisions continuing the effectiveness of the reduction in the amount of certain
corporate income tax deductions and exclusions through June 30, 2023.
2. Reinstate present law provisions relative to expiration of the decrease in the amount of
certain corporate income tax deductions and exclusions on June 30, 2018.
3. Delete provisions increasing the depletion allowance for oil and gas wells, coal mines,
metal mines, and sulphur mines and the applicability provisions relative to the increases.
4. Add applicability provisions relative to the claiming of the reduced amounts of corporate
deductions and exclusions in tax years 2015, 2016, and 2017.