GREEN SHEET REDIGEST
HCR 66 2020 Regular Session Bishop
TAX/CORP FRANCHISE: Suspends the lower tier of the corporation franchise tax
levied on domestic and foreign corporations and the initial tax levied on certain
business entities subject to the corporate franchise tax
DIGEST
Suspends the state corporation franchise tax levied at the rate of $1.50 for each $1,000, or
major fraction thereof on the first $300,000 of taxable capital on Louisiana small business
corporations and the initial tax levied on corporations or other entities for the first accounting
period in which the entity becomes subject to the corporation franchise tax.
(Suspends R.S. 47:601(A) and 611(A))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means
to the original bill:
1. Limit the suspension of the corporation franchise tax to the tax levied at the
rate of $1.50 for each $1,000, or major fraction thereof on the first $300,000
of taxable capital on domestic and foreign corporations.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the engrossed bill
1. Defines La. small business corporation and clarifies that the suspension of the
franchise tax applies to La. small business corporations.
2. Provides that the suspension of the franchise tax applies only to franchise
taxable periods beginning between July 1, 2020 and June 30, 2021.
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Prepared by Curry J. Lann.