HLS 23RS-585 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 214
BY REPRESENTATIVE DEVILLIER
TAX/STATE: Repeals individual income, corporate income, and corporate franchise taxes
and repeals all credits, deductions, exemptions, and exclusions from the taxes
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 3204(H)(1) and (2), (I)(1)(a) and (b), and (J)(1) and (2), 4305(B)(1) and (2), Chapter
9 5 of Subtitle V of Title 47 of the Louisiana Revised Statutes of 1950, comprised of
10 R.S. 47:4331, R.S. 47:6005 through 6042, Chapter 2 of Subtitle VII of Title 47 of the
11 Louisiana Revised Statutes of 1950, comprised of R.S. 47:6101 through 6109,
12 Chapter 3 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of 1950,
13 comprised of R.S. 47:6301, R.S. 51:1787(A)(1)(b), (2), and (3) and (G), Chapter 22
14 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1801
15 through 1808, R.S. 51:1924(B), Part VI of Chapter 39 of Title 51 of the Louisiana
16 Revised Statutes of 1950, comprised of R.S. 51:2351 through 2356, and Chapter 39-
17 C of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:2399.1
18 through 2399.6, relative to state taxes; to repeal the state tax levied on the taxable
19 income of individuals and estates and trusts; to repeal the state tax levied on the
20 taxable income of corporations; to repeal the state corporate franchise tax; to repeal
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HB NO. 214
1 income and franchise tax credits, exemptions, deductions, and exclusions; to limit
2 the applicability of certain income tax credits; to provide for applicability; to provide
3 for an effective date; and to provide for related matters.
4Be it enacted by the Legislature of Louisiana:
5 Section 1. R.S. 51:1787(A)(1)(c), (B)(4)(a)(introductory paragraph), (I), and (K)(1)
6and 1924(A), (E), and (F) are hereby amended and reenacted to read as follows:
7 §1787. Enterprise zone incentives
8 A. The board, after consultation with the secretaries of the Department of
9 Economic Development and Department of Revenue, and with the approval of the
10 governor, may enter into contracts not to exceed five years to provide:
11 (1) For either:
12 * * *
13 (c)(i) For projects for which the advance notification is filed on or after April
14 1, 2016, the amount of the rebate of sales and use taxes and the investment income
15 tax credit granted pursuant to the provisions of this Paragraph shall not exceed one
16 hundred thousand dollars per net new job created under this Chapter.
17 (ii) A business shall not receive any sales and use tax rebate or refundable
18 investment income tax credit until it has provided all documentation, including filing
19 the annual certification report as required by rule, and has shown proof of the
20 creation of the net new jobs.
21 (iii) For purposes of determining the maximum rebate or income tax credit
22 allowed, each net new job shall only be counted once. The limitation provided for
23 in this Subparagraph shall only apply to the sales and use tax rebates and refundable
24 investment income tax credits granted to businesses participating in the Enterprise
25 Zone Program.
26 * * *
27 B. The board may enter into the contracts provided in Subsection A of this
28 Section provided that:
29 * * *
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HB NO. 214
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 incentive for the year in which
7 the violation occurred and for each year thereafter in which the violation is not
8 remedied shall be considered a tax due as of December thirty-first of the year in
9 which the violation occurred, and for each year thereafter in which a credit an
10 incentive is used and the violation is not remedied, and it shall be collected by the
11 collecting agencies in the same manner and subject to the same provisions for the
12 collection of other tax debts.
13 * * *
14 K.(1) In addition to the incentives incentive provided for in Subsection A of
15 this Section, an essential critical infrastructure worker shall be eligible for a one-time
16 hazard pay rebate based upon the worker's adjusted gross income.
17 * * *
18 §1924. Income tax credit or premium tax reduction
19 A. A person, either natural or artificial, who invests in the certified capital
20 of a certified Louisiana capital company may claim either a premium tax reduction
21 pursuant to R.S. 22:832(E) or a credit against the person's Louisiana income tax in
22 the person's taxable year in which the investment is made, as certified by the
23 commissioner, pursuant to rules promulgated by the secretary, to of the Department
24 of Insurance or the Department of Revenue.
25 * * *
26 E. The amount of the tax credit which exceeds the person's premium tax and
27 income tax liability for the taxable year for which credits are the credit is allowed or
28 the amount of premium and income tax credits that are credit not used by such the
29 person for the taxable year for which such credits are the credit is allowed may be
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HB NO. 214
1 carried forward to subsequent years until the credits are credit is exhausted; however,
2 the reduction in any taxable year shall not exceed such the person's premium tax or
3 income tax liability for such taxable the year.
4 F. The department shall provide for the transfer or sale of premium and
5 income tax credits under this Chapter. The transfer or sale of income or premium
6 tax credits will be restricted to transfers or sales between affiliates and sophisticated
7 investors, collectively referred to as acquirers. No acquirer shall be able to utilize
8 any premium tax credit earned after July 1, 2002, until at least the second
9 anniversary of the investment date of the investment pool from which the premium
10 tax credits were earned. Furthermore, even though a transfer or sale of credits,
11 known as an election under this Section, may involve several entities, only one
12 election may be made during any calendar quarter. Therefore, an investor in a
13 certified Louisiana capital company may only transfer or sell credits once during a
14 calendar quarter and the entity that purchases the credit may not transfer credits
15 obtained during the quarter in which the credits are transferred or purchased. In any
16 subsequent calendar year, the purchaser of the credits may make one transfer election
17 per calendar quarter.
18 * * *
19 Section 2. Part II of Chapter 26 of Title 25 of the Louisiana Revised Statutes of
201950, comprised of R.S. 25:1226 through 1226.6, R.S. 47:11 and 12, Chapter 1 of Subtitle
21II of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:21 through
22300.11, Chapter 5 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950,
23comprised of R.S. 47:601 through 618, 3204(H)(1) and (2), (I)(1)(a) and (b), and (J)(1) and
24(2), 4305(B)(1) and (2), Chapter 5 of Subtitle V of Title 47 of the Louisiana Revised Statutes
25of 1950, comprised of R.S. 47:4331, R.S. 47:6005 through 6042, Chapter 2 of Subtitle VII
26of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:6101 through
276109, Chapter 3 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of 1950,
28comprised of R.S. 47:6301, R.S. 51:1787(A)(1)(b), (2), and (3) and (G), Chapter 22 of Title
2951 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1801 through 1808, R.S.
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HB NO. 214
151:1924(B), Part VI of Chapter 39 of Title 51 of the Louisiana Revised Statutes of 1950,
2comprised of R.S. 51:2351 through 2356, and Chapter 39-C of Title 51 of the Louisiana
3Revised Statutes of 1950, comprised of R.S. 51:2399.1 through 2399.6, are hereby repealed
4in their entirety.
5 Section 3. The provisions of this Act shall be applicable for income tax years
6beginning on or after January 1, 2024, and to corporate franchise tax periods beginning on
7or after January 1, 2024.
8 Section 4. This Act shall become effective on January 1, 2024.
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 214 Original 2023 Regular Session DeVillier
Abstract: Repeals the state tax levied on the taxable income of individuals, estates and
trusts, and corporations; the state corporate franchise tax; and 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)1.85% on the first $12,500 of net income.
(2)3.5% on the next $37,500 of net income.
(3)4.25% 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)1.85% on the first $10,000 of La. taxable income.
(2)3.5% on the next $40,000 of La. taxable income.
(3)4.25% 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)3.5% on the first $50,000 of La. taxable income.
(2)5.5% on La. taxable income above $50,000 but not in excess of $150,000.
(3)7.5% on La. taxable income in excess of $150,000.
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,
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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 rate of $2.75 per $1,000 of taxable
capital above $300,000. Present law requires every corporation or other entity subject to the
franchise tax to pay only an initial tax of $110 in the first accounting period in which it
becomes subject to the tax. After the first closing of the corporate books, the tax is payable
as provided in present law.
Proposed law repeals present law.
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)Sales tax portion of the incentives requiring a contract with the Board of Commerce
and Industry (R.S. 47:3204(H)(3) and (4), (I)(1)(c) and (d), and (J)(3), (4), and (5)).
(2)Sales tax portion of exemptions for manufacturing establishments (R.S.
47:4305(B)(3) and (4)).
(3)Rebate portion of the enterprise zone incentive program (R.S. 51:1787(A)(1)(c),
(B)(4)(a)(intro. para.), (I), and (K)(1)).
(4)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, 2024, and to corporate franchise
tax periods beginning on or after Jan. 1, 2024.
Effective Jan. 1, 2024.
(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, 12, 21-300.11, 601-618, 3204(H)(1) and (2),
(I)(1)(a) and (b), and (J)(1) and (2), 4305(B)(1) and (2), 4331, 6005-6042, 6101-6109, 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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