This bill amends existing Louisiana law regarding income tax credits and deductions for taxes paid to other states. It allows resident individuals to claim a credit against Louisiana taxes for net income taxes paid to other states, with specific conditions outlined. Notably, the bill removes the requirement that the other state must provide a similar credit for Louisiana income taxes, and it clarifies that the credit is limited to the amount of Louisiana income tax that would have been imposed if the income had been earned in Louisiana. Additionally, it introduces a new provision allowing individual partners, members, or shareholders to deduct their proportionate share of entity-level taxes paid to other states, provided that this deduction is in lieu of the credit.

Furthermore, the bill repeals certain limitations on the applicability of these provisions, ensuring that they remain effective beyond the previously set expiration date of June 30, 2023. The new provisions will apply to taxable years beginning on or after January 1, 2023, and the bill will take effect upon the governor's signature or after the designated period for bills to become law without signature. Overall, the bill aims to provide more favorable tax treatment for Louisiana residents with income sourced from other states.

Statutes affected:
HB618 Original: 47:33(A)(5), 47:33(A)(4)
HB618 Engrossed:
HB618 Reengrossed:
HB618 Enrolled:
HB618 Act 413: