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 Engrossed 2018 Second Extraordinary Session Jackson
Abstract: Retains the reduction in the amount of the individual income tax credit for net taxes paid
to other states through June 30, 2023, 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 extends the provisions of present law through June 30, 2023.
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 ยง4 of Act No. 109 of 2015 R.S.; Adds R.S. 47:33(A)(7)
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 the tax credit for taxed paid to
other states through June 30, 2023.