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 simultaneously 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. Additionally, the bill introduces provisions to adjust the annual retirement income exemption for individuals aged 65 and older from $6,000 to $12,000, with future adjustments linked to the Consumer Price Index. The legislation also modifies the standard deduction for married individuals filing separately, increasing it from $4,500 to $12,500, and establishes a new section for deducting costs related to qualified property and research expenditures.

The bill further accelerates the expiration of various tax credits and deductions, with a significant cut-off date of June 30, 2025, for applications related to several programs, including those for motion picture production and research and development. It repeals numerous existing tax deductions and credits, including those for dependents and educational expenses, while also amending enterprise zone incentives to prohibit advance notifications after the cut-off date. The proposed changes aim to simplify the tax code, reduce the number of available credits, and create a more predictable tax environment for individuals and businesses in Louisiana, with the new provisions taking effect for taxable periods beginning on or after January 1, 2025.

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)