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 154 Original 2023 Regular Session Beaullieu
Abstract: Establishes corporate and individual income tax exemptions for certain veteran-owned
businesses.
General Provisions
Proposed law establishes corporate and individual income tax exemptions for qualifying
veteran-owned businesses.
Proposed law defines "qualifying veteran-owned business", for purposes of proposed law, as any
business of which at least 51% is owned by one or more veterans and which meets all of the
following requirements:
(1)The business has completed the La. Veteran Initiative certification program of the Dept. of
Economic Development or any successor to that program.
(2)At least one veteran owner of the business has completed the Pathway to Assist Veteran
Entrepreneurs program of the Dept. of Economic Development or any successor to that
program.
(3)The business is a new business entity formed or registered to do business in this state on or
after Aug. 1, 2023.
(4)The business is not formed from a reorganization as defined in present law (R.S.
47:1574.3(B)).
Exemption from Corporate Income Tax
Proposed law provides that $50,000 of income of a qualifying veteran-owned business shall be
exempt from corporate income tax in a taxable year.
Subject to the provisions of proposed law establishing the final taxable year for which a qualifying
veteran-owned business may first claim the exemption (addressed immediately below), proposed law
allows the exemption for a qualifying veteran-owned business in consecutive years for no more than
four years.
Proposed law stipulates that the final taxable year for which a qualifying veteran-owned business may first claim the exemption shall be the taxable year beginning on Jan. 1, 2028. Provides that if
a business to which this exemption is allowed first claims the exemption for a taxable year beginning
on or before Jan. 1, 2028, then the business may continue to claim the exemption for the four-year
period allowed by proposed law. Prohibits businesses from making any first-time claim of the
exemption in any taxable year beginning after Jan. 1, 2028.
Proposed law provides that the corporate income tax exemption authorized therein shall not be
allowed for any taxable year beginning on or after Jan. 1, 2032.
Exemption from Individual Income Tax
Proposed law provides that any resident individual taxpayer required to file a La. tax return, acting
as a business entity authorized to do business in this state, operating as either a sole proprietorship,
a partner in a partnership, or as a Subchapter S corporation, and subject to state income tax shall be
allowed an exemption for income received from a qualifying veteran-owned business that did not
elect to file a La. corporation income tax return pursuant to present law, R.S. 47:287.732.2, or was
not eligible to make such an election.
Proposed law provides that an individual taxpayer meeting the qualifications listed above shall be
allowed an exemption of no more than $50,000 for income received in a taxable year from one or
more qualifying veteran-owned businesses.
Proposed law limits the total amount of tax-exempt individual income associated with a single
qualifying veteran-owned business to $50,000 in any taxable year regardless of the number of
individual taxpayers eligible for the tax exemption for income received from that business.
Subject to the provisions of proposed law establishing the final taxable year for which an individual
may first claim the exemption (addressed immediately below), proposed law allows the exemption
for an individual in consecutive years for no more than four years.
Proposed law stipulates that the final taxable year for which an individual may first claim the
exemption for income received from a qualifying veteran-owned business shall be the taxable year
beginning on Jan. 1, 2028. Provides that if an individual to which this exemption is allowed first
claims the exemption for a taxable year beginning on or before Jan. 1, 2028, then the individual may
continue to claim the exemption for the four-year period allowed by proposed law. Prohibits
individuals from making any first-time claim of the exemption in any taxable year beginning after
Jan. 1, 2028.
Proposed law provides that the individual income tax exemption authorized therein shall not be
allowed for any taxable year beginning on or after Jan. 1, 2032.
Proposed law applies to taxable periods beginning on or after Jan. 1, 2024.
(Adds R.S. 47:287.738(I), 293(9)(a)(xxvi), 297.23, and 6043)