This bill amends various sections of the Louisiana Revised Statutes concerning corporate taxation, instituting a flat tax rate of five and one-half percent for taxable years beginning on or after January 1, 2025, which replaces the previous tiered tax structure. It introduces a bonus depreciation deduction for qualified property and research expenditures, allowing taxpayers to deduct these costs in the year incurred. Additionally, the bill modifies the treatment of certain tax credits, specifically eliminating the Louisiana work opportunity tax credit for certifications requested after June 30, 2025, and repeals several existing tax exemptions, deductions, and credits, including those related to income apportionment and motion picture production sales tax exclusions. It also restricts the renewal of contracts for exemptions, stating that no new contracts may be entered into after June 30, 2025.

Moreover, the bill implements significant changes to tax credit laws, establishing new deadlines for applications and claims, with many programs, including the Angel Investor Tax Credit and Sound Recording Investor Tax Credit, ceasing to accept applications after June 30, 2025. It sets annual caps for tax credits, limiting claims against state income tax to $12 million for research and development tax credits starting July 1, 2025, and adjusting the maximum aggregate total for the Commercial Rehabilitation Tax Credit to $125 million for applications received before January 1, 2025, and $85 million thereafter. The bill also allows for the carryover of unused tax credits to subsequent years if total credits granted fall below the caps and mandates annual reporting by the Department of Economic Development on new businesses resulting from these changes, with the provisions taking effect on January 1, 2025.

Statutes affected:
HB2 Original: 47:750(I), 47:4302(B), 47:6007(I), 47:6015(J), 47:6019(A)(1), 47:6020(H), 47:6022(D)(4), 47:6023(I), 51:1787(L), 47:73(C)(4), 47:95(H), 47:301(10), 47:6005(G), 47:6008(D), 47:6012(F), 47:6013(D), 47:6014(F), 47:6015(L), 47:1(N), 47:6017(C), 47:6022(L), 47:6032(H), 47:6104(D), 47:6105(B), 47:6106(E), 47:6107(C)
HB2 Engrossed: 47:750(I), 47:4302(B), 47:6007(I), 47:6015(J), 47:6019(A)(1), 47:6020(H), 47:6022(D)(4), 47:6023(I), 51:1787(L), 47:73(C)(4), 47:95(H), 47:301(10), 47:6005(G), 47:6008(D), 47:6012(F), 47:6013(D), 47:6014(F), 47:6015(L), 47:1(N), 47:6017(C), 47:6022(L), 47:6032(H), 47:6104(D), 47:6105(B), 47:6106(E), 47:6107(C)
HB2 Reengrossed: 47:750(I), 47:4302(B), 47:6007(I), 47:6015(J), 47:6019(A)(1), 47:6020(H), 47:6022(D)(4), 47:6023(I), 51:1787(L), 47:73(C)(4), 47:95(H), 47:301(10), 47:6005(G), 47:6008(D), 47:6013(D), 47:6014(F), 47:6015(L), 47:1(N), 47:6017(C), 47:6022(L), 47:6032(H), 47:6104(D), 47:6105(B), 47:6106(E), 47:6107(C)
HB2 Enrolled: 47:750(I), 47:4302(B), 47:6006(A), 47:6007(J)(1), 47:6019(A)(1), 47:6020(H), 47:6023(I), 51:1787(L)
HB2 Act 5: 47:750(I), 47:4302(B), 47:6006(A), 47:6007(J)(1), 47:6019(A)(1), 47:6020(H), 47:6023(I), 51:1787(L)