This bill amends Louisiana's tax code with a primary focus on corporate taxation, establishing a flat tax rate of five and one-half percent for corporations starting from taxable years beginning on or after January 1, 2025. This change replaces the previous tiered tax structure and introduces modifications to federal gross income calculations, including a $20,000 deduction for certain taxpayers and a bonus depreciation deduction for qualified property and research expenditures. The bill also terminates certain tax credits, such as the Louisiana work opportunity tax credit after June 30, 2025, and repeals various tax exemptions and credits. Additionally, it sets new definitions and limitations regarding bonus depreciation and amortization, ensuring that claimed depreciation does not duplicate federal allowances.

Moreover, the bill introduces amendments to existing tax credit laws, establishing new deadlines for applications and claims, with many provisions expiring on June 30, 2025. It specifies that no credits will be granted for applications received after this date for programs like the Angel Investor Tax Credit and the Sound Recording Investor Tax Credit, while also capping the total amount of tax credits that can be granted in a fiscal year. The bill allows for the carryover of unused tax credits to subsequent years if the total amount granted falls below the established caps and mandates annual reporting by the Department of Economic Development on new businesses resulting from these tax incentives. The provisions will take effect for income tax periods beginning on or after January 1, 2025, and franchise tax periods beginning on or after January 1, 2026, with an overall effective date set for 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)