HLS 23RS-1279 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 622
BY REPRESENTATIVE BEAULLIEU
TAX/CORP INCOME: Increases the net operating loss deduction allowed for tax year 2023
and thereafter
1 AN ACT
2To amend and reenact R.S. 47:287.69 and 287.86(A), relative to corporation income tax; to
3 provide with respect to the net operating loss deduction; to provide for the amount
4 of the deduction; to provide for limitations; to provide for applicability; to provide
5 for effectiveness; 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 "After adjustments" means after the application of the net operating loss adjustment
12 deduction allowed by R.S. 47:287.86.
13 * * *
14 §287.86. Net operating loss deduction
15 A. Deduction from Louisiana net income. (1) Except as otherwise provided,
16 for For all claims for this deduction on any return filed on or after July 1, 2015, for
17 taxable years beginning prior to January 1, 2023, regardless of the taxable year to
18 which the return relates, there shall be allowed for the taxable year a deduction
19 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 23RS-1279 ORIGINAL
HB NO. 622
1 operating loss carryovers to such year, but the deduction shall never exceed
2 seventy-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, 2023, there shall be allowed for the taxable year a
5 deduction reducing Louisiana net income in an amount equal to the amount of net
6 operating loss carryovers to such year.
7 * * *
8 Section 2. The provisions of this Act shall apply to taxable periods beginning on or
9after January 1, 2023.
10 Section 3. This Act shall become effective upon signature by the governor or, if not
11signed by the governor, upon expiration of the time for bills to become law without signature
12by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
13vetoed by the governor and subsequently approved by the legislature, this Act shall become
14effective 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 622 Original 2023 Regular Session Beaullieu
Abstract: For each taxable year beginning on or after Jan. 1, 2023, increases the net
operating loss deduction from 72% to 100% of a corporation's net operating loss
carryovers to that year.
Present law relative to corporation income tax authorizes a net operating loss deduction.
Provides that, for any taxable year, there shall be allowed a deduction reducing a
corporation's La. net income in an amount equal to 72% of the corporation's net operating
loss carryovers to that year.
Proposed law limits the applicability of the deduction amount allowed by present law to
taxable years beginning prior to Jan. 1, 2023.
Proposed law provides that for all claims for the net operating loss deduction on any return
for a taxable year beginning on or after Jan. 1, 2023, there shall be allowed for the taxable
year a deduction reducing a corporation's La. net income in an amount equal to the full
amount of the corporation's net operating loss carryovers to that year.
Proposed law applies to taxable periods beginning on or after Jan. 1, 2023.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-1279 ORIGINAL
HB NO. 622
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:287.69 and 287.86(A))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.