House Bill No. HLS 243ES-13 proposes a comprehensive overhaul of Louisiana's income tax structure by instituting a flat tax rate of 3% for individuals, estates, and trusts, while significantly increasing the standard deduction. The new standard deduction will be set at $12,500 for single filers and $25,000 for married couples filing jointly starting in tax year 2025. The bill also introduces a new section allowing deductions for costs related to qualified property and research expenditures, and it raises the exemption for annual retirement income for individuals aged 65 and older from $6,000 to $12,000, with future adjustments linked to the Consumer Price Index (CPI). Additionally, the legislation modifies existing deductions and credits, repealing several tax credits and personal exemptions, and establishes a framework for reducing individual income tax rates based on general fund revenue performance.

The bill accelerates the termination of various tax credit programs, setting a deadline of June 30, 2025, for new contracts or renewals related to credits for motion picture production, research and development, and historic structure rehabilitation. It also modifies the tax rates for estates and trusts, changing the rate for income exceeding $50,000 from five percent to three percent. The legislation aims to simplify the tax code, streamline tax deductions and credits, and provide clarity on deadlines for tax incentives, while ensuring that certain tax benefits are phased out by mid-2025. Overall, the proposed changes are designed to provide tax relief to individuals and families in Louisiana while maintaining fiscal responsibility.

Statutes affected:
HB1 Original: 47:32(A), 47:1(A), 47:2(B), 47:750(I), 47:293(9), 47:3(3), 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), 47:32(B), 47:20(A)(2), 47:21(A)(2)
HB1 Engrossed: 47:32(A), 47:1(A), 47:2(B), 47:750(I), 47:293(9), 47:3(3), 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), 47:32(B), 47:20(A)(2), 47:21(A)(2)
HB1 Reengrossed: 47:32(A), 47:1(A), 47:2(B), 47:750(I), 47:293(9), 47:3(3), 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), 47:32(B), 47:20(A)(2), 47:21(A)(2)