The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 7 Engrossed 2018 Second Extraordinary Session Morrell
Present law provides for limitations to the individual income tax credit for taxes paid to another state
and sunsets the limitations on June 30, 2018.
Proposed law repeals the sunset date and makes the limitations permanent.
Present law provides that the credit for taxes paid in other states shall be limited to the amount of
Louisiana income tax that would have been imposed if the income earned in the other state had been
earned in Louisiana.
Proposed law retains present law but provides that the credit shall not exceed the proportion of the
net income tax payable under present law as the income subject to tax in the other state and also
taxable under present law bears to the taxpayer's entire income upon which the net income tax is
imposed by present law.
Proposed law retains present law and further provides that for taxes paid on or after January 1, 2018,
an individual partner or member who pays another state's entity level tax that does not have a capital
component but is based solely on net income shall be allowed a deduction of their proportionate
share of the entity level tax paid.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:33(A)(4), (5), and (6) and Section 4 of Act 109 of 2015 R.S.; adds R.S.
47:33(A)(7); repeals Section 2 of Act 109 of 2015 R.S.)