HLS 21RS-930 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 543
BY REPRESENTATIVE DEVILLIER
TAX/STATE: Repeals individual income, corporate income, and corporate franchise taxes
and repeals all credits, deductions, exemptions, and exclusions from the tax
1 AN ACT
2To amend and reenact R.S. 51:1787(A)(1)(c), (B)(4)(a)(introductory paragraph), (I), and
3 (K)(1) and 1924(A), (E), and (F) and to repeal Part II of Chapter 26 of Title 25 of the
4 Louisiana Revised Statutes of 1950, comprised of R.S. 25:1226 through 1226.6, R.S.
5 47:11 and 12, Chapter 1 of Subtitle II of Title 47 of the Louisiana Revised Statutes
6 of 1950, comprised of R.S. 47:21 through 300.11, Chapter 5 of Subtitle II of Title 47
7 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:601 through 618,
8 Chapter 3 of Subtitle V of Title 47 of the Louisiana Revised Statutes of 1950,
9 comprised of R.S. 47:4301 though 4306, Chapter 5 of Subtitle V of Title 47 of the
10 Louisiana Revised Statutes of 1950, comprised of R.S. 47:4331, 6005 through 6037,
11 Chapter 2 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of 1950,
12 comprised of R.S. 47:6101 through 6109, Chapter 3 of Subtitle VII of Title 47 of the
13 Louisiana Revised Statutes of 1950, comprised of R.S. 47:6301 and R.S.
14 51:1787(A)(1)(b), (2), and (3) and (G), Chapter 22 of Title 51 of the Louisiana
15 Revised Statutes of 1950, comprised of R.S. 51:1801 through 1808, 1924(B), Part
16 VI of Chapter 39 of the Louisiana Revised Statutes of 1950, comprised of R.S.
17 51:2351 through 2356, and Chapter 39-C of Title 51 of the Louisiana Revised
18 Statutes of 1950, comprised of R.S. 51:2399.1 through 2399.6, relative to state taxes;
19 to repeal the state tax levied on the taxable income of individuals and estates and
20 trusts; to repeal the state tax levied on the taxable income of corporations; to repeal
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HB NO. 543
1 the state corporate franchise tax; to repeal income and franchise tax credits,
2 exemptions, deductions, and exclusions; to limit the applicability of certain income
3 tax credits; to provide for applicability; to provide for an effective date; and to
4 provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 51:1787(A)(1)(c), (B)(4)(a)(introductory paragraph), (I), and (K)(1)
7and 1924(A), (E), and (F) are hereby amended and reenacted to read as follows:
8 §1787. Enterprise zone incentives
9 A. The board, after consultation with the secretaries of the Department of
10 Economic Development and Department of Revenue, and with the approval of the
11 governor, may enter into contracts not to exceed five years to provide:
12 (1) For either:
13 * * *
14 (c)(i) For projects for which the advance notification is filed on or after April
15 1, 2016, the amount of the rebate of sales and use taxes and the investment income
16 tax credit granted pursuant to the provisions of this Paragraph shall not exceed one
17 hundred thousand dollars per net new job created under this Chapter.
18 (ii) A business shall not receive any sales and use tax rebate or refundable
19 investment income tax credit until it has provided all documentation, including filing
20 the annual certification report as required by rule, and has shown proof of the
21 creation of the net new jobs.
22 (iii) For purposes of determining the maximum rebate or income tax credit
23 allowed, each net new job shall only be counted once. The limitation provided for
24 in this Subparagraph shall only apply to the sales and use tax rebates and refundable
25 investment income tax credits granted to businesses participating in the Enterprise
26 Zone Program.
27 * * *
28 B. The board may enter into the contracts provided in Subsection A of this
29 Section provided that:
30 * * *
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HB NO. 543
1 (4)(a) The business makes its request for rebate of sales and use tax or the
2 tax credit either:
3 * * *
4 I. If the collecting agencies receive notice that the rebate or credit, or any
5 part thereof, has ceased by reason of a violation of the terms of the contract under
6 which it was granted, then the amount of the credit for the year in which the violation
7 occurred and for each year thereafter in which the violation is not remedied shall be
8 considered a tax due as of December thirty-first of the year in which the violation
9 occurred, and for each year thereafter in which a credit is used and the violation is
10 not remedied, and it shall be collected by the collecting agencies in the same manner
11 and subject to the same provisions for the collection of other tax debts.
12 * * *
13 K.(1) In addition to the incentives incentive provided for in Subsection A of
14 this Section, an essential critical infrastructure worker shall be eligible for a one-time
15 hazard pay rebate based upon the worker's adjusted gross income.
16 * * *
17 §1924. Income tax credit or premium tax reduction
18 A. A person, either natural or artificial, who invests in the certified capital
19 of a certified Louisiana capital company may claim either a premium tax reduction
20 pursuant to R.S. 22:832(E) or a credit against the person's Louisiana income tax in
21 the person's taxable year in which the investment is made, as certified by the
22 commissioner, pursuant to rules promulgated by the secretary, to the Department of
23 Insurance or the Department of Revenue.
24 * * *
25 E. The amount of the tax credit which exceeds the person's premium tax and
26 income tax liability for the taxable year for which credits are allowed or the amount
27 of premium and income tax credits that are not used by such person for the taxable
28 year for which such credits are allowed may be carried forward to subsequent years
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HB NO. 543
1 until the credits are exhausted; however, the reduction in any taxable year shall not
2 exceed such person's premium tax or income tax liability for such taxable year.
3 F. The department shall provide for the transfer or sale of premium and
4 income tax credits under this Chapter. The transfer or sale of income or premium
5 tax credits will be restricted to transfers or sales between affiliates and sophisticated
6 investors, collectively referred to as acquirers. No acquirer shall be able to utilize
7 any premium tax credit earned after July 1, 2002, until at least the second
8 anniversary of the investment date of the investment pool from which the premium
9 tax credits were earned. Furthermore, even though a transfer or sale of credits,
10 known as an election under this Section, may involve several entities, only one
11 election may be made during any calendar quarter. Therefore, an investor in a
12 certified Louisiana capital company may only transfer or sell credits once during a
13 calendar quarter and the entity that purchases the credit may not transfer credits
14 obtained during the quarter in which the credits are transferred or purchased. In any
15 subsequent calendar year, the purchaser of the credits may make one transfer election
16 per calendar quarter.
17 * * *
18 Section 2. Part II of Chapter 26 of Title 25 of the Louisiana Revised Statutes of
191950, comprised of R.S. 25:1226 through 1226.6, R.S. 47:11 and 12, Chapter 1 of Subtitle
20II of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:21 through
21300.11, Chapter 5 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950,
22comprised of R.S. 47:601 through 618, Chapter 3 of Subtitle V of Title 47 of the Louisiana
23Revised Statutes of 1950, comprised of R.S. 47:4301 though 4306, Chapter 5 of Subtitle V
24of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:4331, 6005
25through 6037, Chapter 2 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of
261950, comprised of R.S. 47:6101 through 6109, Chapter 3 of Subtitle VII of Title 47 of the
27Louisiana Revised Statutes of 1950, comprised of R.S. 47:6301 and R.S. 51:1787(A)(1)(b),
28(2), and (3) and (G), Chapter 22 of Title 51 of the Louisiana Revised Statutes of 1950,
29comprised of R.S. 51:1801 through 1808, 1924(B), Part VI of Chapter 39 of the Louisiana
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HB NO. 543
1Revised Statutes of 1950, comprised of R.S. 51:2351 through 2356, and Chapter 39-C of
2Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:2399.1 through
32399.6 are hereby repealed in their entirety.
4 Section 3. The provisions of this Act shall be applicable for income tax years
5beginning on or after January 1, 2023, and to corporate franchise tax periods beginning on
6or after January 1, 2023.
7 Section 4. This Act shall take effect and become operative on January 1, 2023, if the
8proposed amendment of Article VII of the Constitution of Louisiana contained in the Act
9which originated as House Bill No. ___ of this 2021 Regular Session of the Legislature is
10adopted at a statewide election and becomes effective.
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 543 Original 2021 Regular Session DeVillier
Abstract: Repeals the state tax levied on the taxable income of individuals, estates and
trusts, and corporations, and the state corporate franchise tax and repeals income and
franchise tax exemptions, deductions, exclusions, and credits.
Present law provides for a tax to be assessed, levied, collected, and paid upon the taxable
income of an individual at the following rates:
(1)2% on the first $12,500 of net income.
(2)4% on the next $37,500 of net income.
(3)6% on net income in excess of $50,000.
Present law provides for a tax to be assessed, levied, collected, and paid on the La. taxable
income of an estate or trust at the following rates:
(1)2% on the first $10,000 of La. taxable income.
(2)4% on the next $40,000 of La. taxable income.
(3)6% on La. taxable income in excess of $50,000.
Present law requires that the tax to be assessed, levied, collected, and paid on the La. taxable
income of every corporation is 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.
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(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.
Present law (R.S. 47:601 et seq.) establishes the corporation franchise tax which is levied
on every domestic and foreign corporation exercising its charter, qualified to do business,
or actually doing business in La. The corporation franchise tax is also levied on any domestic
or foreign corporation owning or using any part of its capital, plant, or other property in La.
Present law provides that the tax shall be levied at the following rates:
(1)$1.50 per $1,000 of taxable capital, up to $300,000.
(2)$3 per $1,000 of taxable capital above $300,000.
Present law suspends the lower tier of corporate franchise tax and the initial tax for small
business corporations for taxable periods beginning between July 1, 2020, and June 30,
2021.
Proposed law repeals the state taxes levied on the net income of individuals, estates and
trusts, corporations and the corporation franchise tax and repeals present law provisions
relative to the suspension of the lower tier of the corporate franchise tax.
Present law provides for various individual and corporation tax incentives in the form of
deductions, exemptions, exclusions, and credits. Further provides that various credits apply
against individual and corporation income and corporation franchise tax liability.
Proposed law repeals the deductions, exemptions, exclusions, and credits provided for in
present law.
Proposed law limits the applicability of the following tax credits:
(1)Rebate portion of the enterprise zone incentive program. (R.S. 51: 1787(A)(1)(c),
(B)(4)(a)(intro. para.), (I), and (K)(1))
(2)Premium tax portion of the premium tax credit. (R.S. 51:1924(A), (E), and (F))
Applicable to income tax years beginning on or after Jan. 1, 2023, and to corporate franchise
tax periods beginning on or after Jan. 1, 2023.
Effective Jan 1, 2023, if the proposed amendment of Article VII of the Constitution of La.
contained in the Act which originated as House Bill No. ___ of this 2021 R.S. of the
Legislature is adopted at a statewide election and becomes effective.
(Amends R.S. 51:1787(A)(1)(c), (B)(4)(a)(intro. para.), (I), and (K)(1) and 1924(A), (E), and
(F); Repeals R.S. 25:1226-1226.6, R.S. 47:11 and 12, 21-300.11, 601-618, 4301-4306, 4331,
6005-6037, 6101-6109, and 6301 and R.S. 51:1787(A)(1)(b), (2), and (3) and (G), 1801-
1808, 1924(B), 2351-2356, and 2399.1-2399.6)
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