HLS 182ES-45 ORIGINAL
2018 Second Extraordinary Session
HOUSE BILL NO. 18
BY REPRESENTATIVE JACKSON
TAX CREDITS: Provides relative to the individual income tax credit for taxes paid to other
states (Item #17)
1 AN ACT
2To amend and reenact R.S. 47:33(A)(5) and Section 4 of Act No. 109 of the 2015 Regular
3 Session of the Legislature, to enact R.S. 47:33(A)(7), and to repeal Section 2 of Act
4 No. 109 of the 2015 Regular Session of the Legislature, relative to the individual
5 income tax credit for taxes paid to other states; to repeal provisions providing for an
6 increase in the credit; to limit the amount of the credit; to authorize a deduction of
7 income taxes paid to other states under certain circumstances; to provide for
8 effectiveness; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:33(A)(5) is hereby amended and reenacted and R.S. 47:33(A)(7)
11is hereby enacted to read as follows:
12 §33. Credit for taxes paid in other states
13 A. Subject to the following conditions, resident individuals shall be allowed
14 a credit against the taxes imposed by this Chapter for net income taxes imposed by
15 and paid to another state on income taxable under this Chapter, provided that:
16 * * *
17 (5)(a) The credit shall be limited to the amount of Louisiana income tax that
18 would have been imposed if the income earned in the other state had been earned in
19 Louisiana.
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 182ES-45 ORIGINAL
HB NO. 18
1 (b) The credit shall not be allowed for tax paid on income that is not subject
2 to tax in Louisiana. The amount of the credit shall not exceed the ratio which shall
3 be determined by multiplying the taxpayer's Louisiana income tax liability before
4 consideration of any credit described in Subsection A of this Section by a fraction,
5 the numerator of which is the taxpayer's Louisiana tax table income attributable to
6 other states to which net income taxes were paid by a resident individual, and the
7 denominator of which is total Louisiana tax table income.
8 * * *
9 (7) For taxes paid on or after January 1, 2018, an individual partner, member,
10 or shareholder who pays another state's entity level tax that does not have a capital
11 component shall be allowed a deduction of their proportionate share of the entity
12 level tax paid.
13 * * *
14 Section 2. Section 4 of Act No. 109 of the 2015 Regular Session of the Legislature
15is hereby amended and reenacted to read as follows:
16 * * *
17 Section 4. The provisions of Sections 1 and 3, 3, and 4 of this Act shall
18 become effective on July 1, 2015, and shall remain effective through June 30, 2018,
19 at which time the provisions of Sections 1 and 3 of this Act shall become null, void,
20 and of no effect. The provisions of Section 4 of this Act shall become effective on
21 July 1, 2015. The provisions of Section 2 of this Act shall become effective on July
22 1, 2018.
23 Section 3. Section 2 of Act No. 109 of the 2015 Regular Session of the Legislature
24is hereby repealed in its entirety.
25 Section 4. This Act shall become effective upon signature by the governor or, if not
26signed by the governor, upon expiration of the time for bills to become law without signature
27by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
28vetoed by the governor and subsequently approved by the legislature, this Act shall become
29effective on the day following such approval.
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 182ES-45 ORIGINAL
HB NO. 18
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 18 Original 2018 Second Extraordinary Session Jackson
Abstract: Removes the three-year sunset provision of Act No. 109 of the 2015 R.S. relative
to the individual income tax credit for net taxes paid to other states and authorizes
a deduction for entity level tax paid under certain circumstances.
Present law authorizes an individual income tax credit in an amount equal to income taxes
paid for the same taxable period to another state on income that is subject to La. tax if the
other state authorizes a similar credit.
Present law authorizes a credit for three years in an amount of the lesser of the actual amount
of tax paid to the other state or the amount of La. income tax that would have been imposed
if the income had been earned in La.
Present law provides for termination (sunset) in three years of those provisions of present
law that require the state to which income taxes were paid to authorize a similar credit and
that the credit amount be the lesser of the actual amount of tax paid to the other state or the
amount of La. income tax that would have been imposed if the income had been earned in
La.
Proposed law repeals the termination provisions thereby providing for permanent
effectiveness of present law.
Proposed law prohibits the credit for tax paid on income that is not subject to tax in this
state. Further provides that the amount of the credit shall not exceed the ratio of La. income
tax liability before consideration of certain credits authorized in present law by a fraction,
the numerator of which is the taxpayer's La. tax table income attributable to other states to
which net income taxes were paid by a resident individual, and the denominator of which
is total La. tax table income.
Proposed law provides that for taxes paid on or after Jan. 1, 2018, an individual partner,
member, or shareholder who pays another state's entity level tax that does not have a capital
component shall be allowed a deduction of their proportionate share of the entity level tax
paid.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:33(A)(5) and §4 of Act No. 109 of 2015 R.S.; Adds R.S. 47:33(A)(7);
Repeals §2 of Act No. 109 of 2015 R.S.)
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.