SSHB292 416 3770
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 292 2021 Regular Session Riser
TAX/CORP INCOME: Changes the corporate income tax brackets, reduces the corporate
income tax rates, and repeals the income tax deduction for federal income taxes paid for
purposes of calculating corporate income tax
Synopsis of Senate Amendments
1.Decreases the number of brackets applicable to corporation income tax from 5
brackets to four brackets and reduces the corporation income tax rates.
2.Repeals provision of present law authorizing certain S corporations to deduct
federal income taxes paid on returns.
3.Reduces income tax rates for S corporations that elect to be taxed at the
corporate level.
4.Changes the applicability provisions of proposed law from taxable periods
beginning on or after Jan. 1, 2023, to taxable periods beginning on or after Jan.
1, 2022.
5.Conditions the effectiveness of proposed law on the statewide adoption of either
House Bill No. 275 or Senate Bill No. 159 of this 2021 R.S. of the Legislature
and the enactment of both House Bill No. 278 and Senate Bill No. 161 of this
2021 R.S. of the Legislature.
Digest of Bill as Finally Passed by Senate
Present constitution and present law authorize a state deduction for federal income taxes paid
for purposes of computing income taxes for the same period. Present law further authorizes
an S corporation that elects to be taxed at the corporate level to claim a federal income tax
deduction.
Proposed law repeals the present law provisions that authorize a state deduction for federal
income taxes paid for purposes of calculating corporate income taxes and repeals the
deduction for S corporations that elect to be taxed at the corporate level.
Present law requires that the tax to be assessed, levied, collected, and paid on the La. taxable
income of every corporation to be computed at the following rates:
(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 changes the corporate income tax brackets in present law and reduces the
corporate income tax rates in present law as follows:
(1)1.85% on the first $25,000 of La. taxable income.
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(2)3.5% on La. taxable income above $25,000 but not in excess of $100,000.
(3)6.5% on La. taxable income above $100,000 but not in excess of $250,000.
(4)8% on all La. taxable 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% on the first $25,000 of La. taxable income.
(2)4% on La. taxable income above $25,000 but not in excess of $100,000.
(3)6% on La. taxable income in excess of above $100,000.
Proposed law reduces the rate of tax on the taxable income of every S corporation that elects
to be taxed at the corporate level as follows:
(1)From 2% to 1.85% on the first $25,000 of La. taxable income.
(2)From 4% to 3.5% on La. taxable income above $25,000 but not in excess of
$100,000.
(3)From 6% to 4.25% on La. taxable income in excess of $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))
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