GREEN SHEET REDIGEST
HB 18 2018 Second Extraordinary Session Jackson
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX CREDITS: Provides relative to the individual income tax credit for taxes paid
to other states (Item #17)
DIGEST
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 that pays another state's entity level tax that is based solely upon net
income included in the entity's federal taxable income without any capital component shall
be allowed a deduction equal to their proportionate share of the entity level tax paid.
Proposed law provides that the deduction pursuant to proposed law will be allowed only to
the extent that the proportionate share of the related income on the tax paid to the other state
is included in the calculation of La. taxable income that is reported on the La. return of the
individual partner or member.
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. Deletes provisions making the reduction in the amount of the tax credit
permanent.
2. Continues effectiveness of the reduction in the amount of the tax credit for taxes
paid to other states through June 30, 2023.
Page 1 of 2
Prepared by James Benton. Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the engrossed bill
1. Provides that the deduction shall be based on a state's entity level tax that is based
solely upon net income included in the entity's federal taxable income.
2. Provides that the deduction will be allowed only to the extent that the
proportionate share of the related income on the tax paid to the other state is
included in the calculation of La. taxable income that is reported on the La.
return.
Page 2 of 2
Prepared by James Benton.