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 639 Original 2023 Regular Session Freiberg
Abstract: Repeals the individual income tax deduction for net capital gains for resident and
nonresident taxpayers.
Present law relative to individual income tax establishes definitions of "tax table income" (referred
to informally as "taxable income") for resident and nonresident individuals, respectively.
Present law provides for deductions from tax table income for net capital gains for both resident and
nonresident individuals. Proposed law repeals present law.
Proposed law applies to taxable periods beginning on or after Jan. 1, 2024. Stipulates that no
deduction for net capital gains shall be allowed for sales or exchanges of equity interests or assets
occurring before Jan. 1, 2024, and that a deduction for net capital gains shall only be allowed for
gains reportable as installment sales pursuant to applicable provisions of the federal Internal Revenue
Code (26 U.S.C. 453).
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:293(10); Repeals R.S. 47:293(9)(a)(xvii))