HLS 21RS-929 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 506
BY REPRESENTATIVE BEAULLIEU
TAX/INCOME TAX: Increases the amount of the net operating loss deduction
1 AN ACT
2To amend and reenact R.S. 47:287.69 and 287.86(A), relative to corporate income tax; to
3 provide for the net operating loss deduction; to provide for the amount of the
4 deduction; to provide for applicability; to provide for an effective date; to provide
5 for limitations; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:287.69 and 287.86(A) are hereby amended and reenacted to read
8as follows:
9 §287.69. Louisiana taxable income defined
10 "Louisiana taxable income" means Louisiana net income, after adjustments,
11 less the federal income tax deduction allowed by R.S. 47:287.85. "After adjustments"
12 means after the application of the net operating loss adjustment deduction allowed
13 by R.S. 47:287.86.
14 * * *
15 §287.86. Net operating loss deduction
16 A.(1) Deduction from Louisiana net income. Except as otherwise provided,
17 for For all claims for this deduction on any return filed on or after July 1, 2015, for
18 taxable years beginning prior to January 1, 2021, regardless of the taxable year to
19 which the return relates, there shall be allowed for the taxable year a deduction
20 reducing Louisiana net income in an amount equal to seventy-two percent of the net
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-929 ENGROSSED
HB NO. 506
1 operating loss carryovers to such year, but the deduction shall never exceed seventy-
2 two percent of Louisiana net income.
3 (2) For all claims for this deduction on any return for a taxable year
4 beginning on or after January 1, 2021, there shall be allowed for the taxable year a
5 deduction reducing Louisiana net income in an amount equal to eighty percent of the
6 amount of net operating loss carryovers to such year, but the deduction shall never
7 exceed eighty percent of Louisiana net income.
8 * * *
9 Section 2. The provisions of this Act shall be applicable to tax years beginning on
10or after January 1, 2021.
11 Section 3. This Act shall become effective upon signature by the governor or, if not
12signed by the governor, upon expiration of the time for bills to become law without signature
13by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
14vetoed by the governor and subsequently approved by the legislature, this Act shall become
15effective on the day following such approval.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 506 Engrossed 2021 Regular Session Beaullieu
Abstract: Increases the amount of the net operating loss deduction that may be claimed on
returns filed for tax years beginning on or after Jan. 1, 2021, to 80% of the net
operating loss carryovers for the taxable year.
Present law authorizes a deduction reducing La. net income in an amount equal to 72% of
the net operating loss carryovers for the taxable year for all claims on any return filed on or
after July 1, 2015, regardless of the taxable year to which the return relates. Present law
prohibits the amount of the deduction from exceeding 72% of the La. net income of the
taxpayer.
Proposed law increases the amount of the deduction for net operating losses for claims on
any return for a taxable year beginning on or after Jan. 1, 2021, from 72% of the net
operating loss carryovers for the taxable year to 80% of the net operating loss carryovers for
the taxable year. Prohibits the amount of the deduction from exceeding 80% of the La. net
income of the taxpayer.
Present law authorizes a La. net loss to be carried over for 20 taxable years following the
taxable year of the loss.
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HB NO. 506
Proposed law retains present law.
Applicable to tax years beginning on or after Jan. 1, 2021.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:287.69 and 287.86(A))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change the amount of the net operating loss deduction in proposed law from
100% of the net operating loss carryovers for the taxable year to 80% of the net
operating loss carryovers for the taxable year.
2. Prohibit the amount of the net operating loss deduction from exceeding 80% of
the La. net income of the taxpayer.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.