This bill amends the Louisiana Revised Statutes to provide specific exemptions from the corporation franchise tax for limited liability companies (LLCs) that file as real estate investment trusts (REITs) for federal income tax purposes. The amendments clarify that a "domestic corporation" does not include LLCs that are eligible to be taxed under Subchapter S of the Internal Revenue Code or those LLCs that are REITs, provided that 100% of their shares of common stock are owned by a tax-exempt organization. Additionally, these LLCs must have met the ownership requirement on or before July 1, 2023.

The bill also includes a change in legal terminology, replacing "herein" with "in this Chapter" in the definition of "domestic corporation." The effective date of the bill is set for all franchise taxable periods beginning on or after January 1, 2024, and it will take effect upon the governor's signature or after the specified time frame if not signed.

Statutes affected:
SB9 Original: 47:601(C)(1)
SB9 Engrossed: 47:601(C)(1)
SB9 Enrolled: 47:601(C)(1)
SB9 Act : 47:601(C)(1)