Louisiana 2016 1st Special Session

Louisiana House Bill HB20

Introduced
2/14/16  
Refer
2/14/16  
Refer
2/14/16  
Report Pass
2/23/16  
Report Pass
2/23/16  
Engrossed
2/25/16  
Engrossed
2/25/16  
Report Pass
2/28/16  
Enrolled
3/8/16  
Chaptered
3/9/16  
Chaptered
3/9/16  
Passed
3/9/16  

Caption

Provides relative to the net operating loss deduction for corporate income tax (Item #5) (EN SEE FISC NOTE GF RV See Note)

Impact

The implications of HB20 are significant for state tax laws, particularly regarding how corporations can manage their income taxes following losses. By capping the NOL deduction at seventy-two percent, the bill seeks to provide clarity and consistency in tax calculations for businesses, potentially enhancing financial transparency. However, it also signifies a change in how losses can be accounted for at the state level, which could affect corporate financial strategies and tax liabilities moving forward.

Summary

House Bill 20 aims to amend the provisions surrounding the net operating loss (NOL) deduction for corporate income tax in Louisiana. The bill modifies R.S. 47:287.86(A) to allow corporations to deduct seventy-two percent of their net operating loss carryovers when calculating their Louisiana net income for taxable years. This deduction will be limited to not exceed seventy-two percent of the corporation’s net income. Importantly, the bill also repeals previous provisions that permitted an additional NOL deduction as outlined in Act No. 123 of the 2015 session.

Sentiment

The general sentiment around the bill appears to be supportive, particularly among legislators who view it as a necessary adjustment to the state's corporate tax structure. During discussions, there was a consensus that the bill would streamline the process for businesses and provide a more predictable taxation landscape. Few dissenting voices were noted, as the bill passed unanimously during voting, reflecting strong bipartisan support.

Contention

Despite the bill’s unanimous passage, there were points of contention regarding the implications of such changes. Opponents of previous iterations argued that restricting the NOL deduction could disproportionately impact smaller businesses that rely heavily on the ability to offset losses. However, such concerns seemed to gain less traction with the adjusted provisions of HB20, which focused on standardizing deductions within a clear framework. Nevertheless, the balance between ensuring fair tax law and providing tax relief remains a nuanced topic within legislative discussions.

Companion Bills

No companion bills found.

Previously Filed As

LA HB116

Provides relative to loss years for purposes of the net operating loss deduction for corporate income tax (Item #5) (EN SEE FISC NOTE GF RV See Note)

LA HB25

Provides relative to the net operating loss deduction for corporate income tax (Item #12) (OR INCREASE GF RV See Note)

LA HB85

Provides relative to the allowable amount of net operating loss deduction (Item #12) (OR SEE FISC NOTE GF RV See Note)

LA HB47

Provides with respect to the net operating loss deduction for corporate income tax (Item #37) (EN NO IMPACT GF RV See Note)

LA HB153

Provides relative to the net operating loss deduction from corporate income tax (EG -$146,000,000 GF RV See Note)

LA HB263

Provides relative to loss years for purposes of the net operating loss deduction for corporate income tax (EN DECREASE GF RV See Note)

LA HB23

Repeals three-year sunset of certain reductions to corporate income tax deductions, exemptions, and exclusions (Item #12) (RE1 SEE FISC NOTE GF RV See Note)

LA HB218

Provides with respect to the net operating loss deduction for purposes of the corporate income tax (EN +$29,000,000 GF RV See Note)

LA SB22

Authorizes a net operating loss carry-back for purposes of the corporation income tax. (Item #20) (7/1/20) (OR DECREASE GF RV See Note)

LA HB653

Provides relative to corporate income tax deductions (EG +$16,500,000 GF RV See Note)

Similar Bills

No similar bills found.