The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Danielle B. Clapinski.
DIGEST
SB 89 Engrossed 2023 Regular Session Stine
Present law provides resident individual and nonresident individual 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 requires the Department of Revenue to promulgate regulations related to the individual
income tax deduction for income from net capital gains. The regulations shall, at a minimum,
provide for the following:
(1)Documentation requirements applicable to taxpayers claiming the deduction.
(2)A de minimus exception to documentation requirements for small transaction eligible for the
deduction.
(3)Restrictions on eligibility for transactions where the majority of the physical assets are
located outside of Louisiana.
(4)Restrictions on eligibility for transactions between related parties.
Applicable for taxable periods beginning on or after January 1, 2023.
Effective August 1, 2023.
(Amends R.S. 47:293(9)(a)(xvii)) and (10); adds R.S. 47:293.1)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Requires the Department of Revenue to promulgate regulations relative to the net
capital gains deduction and provides for minimum requirements.
2. Makes technical changes.