HASBSB89 BELLM 2905
SENATE SUMMARY OF HOUSE AMENDMENTS
SB 89 2023 Regular Session Stine
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
TAX/INCOME/PERSONAL . Provides relative to the net capital gains deduction for
individual income tax. (8/1/23)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Makes technical changes
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
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)
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Danielle B. Clapinski
Senior Attorney