SLS 23RS-290 ORIGINAL
2023 Regular Session
SENATE BILL NO. 89
BY SENATOR STINE
TAX/INCOME/PERSONAL. Provides relative to the net capital gains deduction for
individual income tax. (8/1/23)
1 AN ACT
2 To amend and reenact R.S. 47:293(9)(a)(xvii), relative to individual income tax; to provide
3 relative the deduction from income for net capital gain; to prohibit the Department
4 of Revenue from requiring certain documentation in order to claim the deduction;
5 to provide for applicability; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:293(9)(a)(xvii) is hereby amended and reenacted to read as
8 follows:
9 ยง293. Definitions
10 The following definitions shall apply throughout this Part, unless the context
11 requires otherwise:
12 * * *
13 (9)(a) "Tax table income", for resident individuals, means adjusted gross
14 income plus interest on obligations of a state or political subdivision thereof, other
15 than Louisiana and its municipalities, title to which obligations vested with the
16 resident individual on or subsequent to January 1, 1980, and less:
17 * * *
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 89
SLS 23RS-290 ORIGINAL
1 (xvii) Income from net capital gains, which shall be limited to gains
2 recognized and treated for federal income tax purposes as arising from the sale or
3 exchange of an equity interest in or substantially all of the assets of a nonpublicly
4 traded corporation, partnership, limited liability company, or other business
5 organization commercially domiciled in this state. The provisions of this Item shall
6 apply only to the sale or exchange of an equity interest in or the assets of a
7 nonpublicly traded business that the taxpayer has held for a minimum of five years
8 immediately prior to the sale or exchange. At the time of the filing of the income
9 tax return, the Department of Revenue is prohibited from requiring a resident
10 individual to provide additional documentation or an appraisal related to the
11 sale of an equity interest or the assets in order to claim the deduction. The
12 amount of the deduction shall be limited as follows:
13 * * *
14 Section 2. This Act shall be applicable for taxable periods beginning on or after
15 January 1, 2023.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Danielle B. Clapinski.
DIGEST
SB 89 Original 2023 Regular Session Stine
Present law provides resident individuals a deduction on income from net capital gains. The
deduction is limited to gains recognized and treated for federal income tax purposes as
arising from the sale or exchange of an equity interest in or substantially all of the assets of
a nonpublicly traded corporation, partnership, limited liability company, or other business
organization commercially domiciled in this state.
Proposed law retains present law.
Proposed law prohibits the Department of Revenue, at the time of the filing of the income
tax return, from requiring a resident individual to provide additional documentation or an
appraisal in order to claim the credit.
Applicable for taxable periods beginning on or after January 1, 2023.
Effective August 1, 2023.
(Amends R.S. 47:293(9)(a)(xvii))
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.