The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 93 Original 2019 Regular Session Ward
Present law requires corporations to pay Louisiana income tax using the corporate income tax rate
and bracket schedule as follows:
(1)4% on the first $25,000 of La. taxable income.
(2)5% on La. taxable income above $25,000 but not in excess of $50,000.
(3)6% on La. taxable income above $50,000 but not in excess of $100,000.
(4)7% on La. taxable income above $100,000 but not in excess of $200,000.
(5)8% on all La. taxable income in excess of $200,000.
Proposed law eliminates the graduated brackets and imposes the corporate income tax at a single rate
of 3.95%.
Present law provides that taxpayers and the department of revenue may enter into agreement to use
certain claims against the state arising from erroneous payments of corporate franchise tax against
corporation income and franchise tax liability.
Proposed law retains present law authorization to use these claims against the state to offset
corporation franchise tax, but eliminates the ability to use these claims to offset corporation income
tax for all such agreements executed after Jan. 1, 2020.
Present law authorizes numerous tax credits that can be used to offset a corporation's Louisiana
corporation income tax liability dollar for dollar.
Proposed law prohibits taxpayers from using tax credits to reduce their corporation income tax
liability, but retains the credits for all other taxes that present law authorizes.
Proposed law provides for transition rules that authorize the continuation of corporation income tax
credits issued pursuant to certain economic development contracts executed before Jan. 1, 2020.
Proposed law provides for a procedure for the utilization of corporation income tax credits with
carryover balances that were earned before Jan. 1, 2020, provided that the credits cannot be used to
offset franchise tax, there is additional time remaining in the carryover period, and the taxpayer
notifies the department of revenue of the balance by July 1, 2020. Proposed law specifically eliminates the ability of corporate taxpayers from using the following tax
credits to offset or reduce their corporation income tax liability:
(1)Insurance Company Premium Tax (R.S. 47:227)
(2)Industrial Tax Equalization Program (R.S. 47:3201-3205)
(3)Exemptions for Manufacturing Establishments (R.S. 47:4301-4306)
(4)Inventory Tax/Ad Valorem Tax/Natural Gas (R.S. 47:6006)
(5)Ad Valorem Tax on Offshore Vessels (R.S. 47:6006.1)
(6)Motion Picture Investor Tax Credit (R.S. 47:6007)
(7) Ad Valorem Tax Paid by Certain Telephone Companies (R.S. 47:6014)
(8) Research and Development Tax Credit (R.S. 47:6015)
(9)Rehabilitation of Historic Structures (R.S. 47:6019)
(10)Digital Interactive Media & Software Tax Credit (R.S. 47:6022)
(11)Musical & Theatrical Productions Tax Credit (R.S. 47:6034)
(12)Ports of Louisiana Tax Credits (R.S. 47:6036)
(13)School Readiness Child Care Provider (R.S. 47:6105)
(14)Enterprise Zone tax credits (R.S. 51:1781-1791)
(15)Retention and Modernization Credit (R.S. 51:2399.1-2399.6)
Proposed law applies to all taxable years beginning on or after Jan. 1, 2020.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:287.12, 1484(C)(1), 1675(B)(2) and (I), 3204(H), (I) and (J), 4305, 6006(A),
6006(B)(1)(intro para), (B)(2), and (4), 6006.1(A), (B)(1), (3), and (4), 6007(C)(1)(intro para), (C)(2)
and (3), 6007(C)(4)(intro para), 6014(A), (B), and (C)(1), (3), (4) and (5), 6015(B)(1) and (2),
(C)(3)(a) and (d)(i), (D)(2)(intro para), and (K), 6019(A)(1)(a), (3)(b)(ii)(aa), and (dd)(I),
6022(E)(2)(a), 6034(C)(1)(intro para) and 6034(D), 6036(C)(1)(a)(intro para), 6036(C)(4), and
(I)(2)(a)(i) and (b), 6105(A), R.S. 51:1787(A)(1)(b) and (2), 2399.3(A)(3); adds R.S. 47:1484(C)(5),
1675(K), R.S. 51:1787(A)(3)(d), and 2399.3(A)(4); repeals R.S. 47:227, 287.748, 287.749, 287.752,
287.753, 287.755, 287.756, 287.758, and 287.759)