GREEN SHEET REDIGEST
HB 292 2021 Regular Session Riser
TAX/CORP INCOME: Repeals the income tax deduction for federal income taxes paid
for purposes of calculating corporation income tax
DIGEST
Present constitution and present law authorize a state deduction for federal income taxes paid
for purposes of computing income taxes for the same period.
Proposed law repeals the present law provisions that authorize a state deduction for federal
income taxes paid for purposes of calculating corporate income taxes.
Present law authorizes an S corporation that elects to be taxed at the corporate level to claim
a federal income tax deduction.
Proposed law repeals present law.
Present law provides for the rate of tax upon the net income of every corporation at the rates
of:
(1)4% upon the first $25,000 of net income.
(2)5% upon the amount of net income above $25,000 but not in excess of $50,000.
(3)6% on the amount of net income above $50,000 but not in excess of $100,000.
(4)7% on the amount of net income above $100,000 dollars but not in excess of
$200,000.
(5)8% on all net income in excess of $200,000.
Proposed law provides for the rate of tax upon the net income of every corporation at the rate
of:
(1)1.85% upon the first $25,000 of net income.
(2)3.5% upon the amount of net income above $25,000 but not in excess of $100,000.
(3)6.5% on the amount of net income above $100,000 but not in excess of $250,000.
(4)8% on all net income in excess of $250,000.
Present law provides for the rate of tax on the taxable income of every S corporation that
elects to be taxed at the corporate level at the rates of:
(1)2% upon the first $25,000 of Louisiana taxable income.
(2)4% upon the amount of Louisiana taxable income above $25,000 but not in excess
of $100,000.
(3)6% upon the amount of Louisiana taxable income above $100,000.
Proposed law provides for the rate of tax on the taxable income of every S corporation that
elects to be taxed at the corporate level at the rates of:
(1)1.85% upon the first $25,000 of Louisiana taxable income.
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Prepared by Curry J. Lann. (2)3.5% upon the amount of Louisiana taxable income above $25,000 but not in excess
of $100,000.
(3)4.25% upon the amount of Louisiana taxable income above $100,000.
Applicable for taxable periods beginning on or after Jan. 1, 2022.
Effective Jan. 1, 2022, if the proposed amendment of Article VII of the Constitution of La.
contained in the Act which originated as House Bill No. 275 of this 2021 R.S. of the
Legislature or the Act which originated as Senate Bill No. 159 of this 2021 R.S. of the
Legislature is adopted at a statewide election and becomes effective and if both of the Acts
that originated as House Bill No. 278 and Senate Bill No. 161 of this 2021 R.S. of the
Legislature are enacted and become law.
(Amends R.S. 47:32(C), 55(5), 241, 287.12, 287.69, and 287.732.2(B); repeals R.S.
47:287.79, 287.83, 287.85, 287.442(B)(1), and 287.732.2(C))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means
to the original bill:
1. Specify the House Bill No. of the proposed constitutional amendment to
which the effectiveness of proposed law is tied.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the engrossed bill
1. Decreases the number of tax brackets applicable to corporation income tax
and lowers the first three rates of corporation income tax.
2. Repeals provision of present law authorizing certain S corporations to claim
a federal income tax deduction.
3. Provides that proposed law is applicable for taxable periods beginning on or
after Jan. 1, 2022.
4. Specifies the House Bill and Senate Bill Nos. to which the effectiveness of
proposed law is tied.
5. Makes technical changes.
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Prepared by Curry J. Lann.