House Bill No. HLS 243ES-13 proposes a comprehensive overhaul of Louisiana's income tax system 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. Additionally, the bill raises 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 existing tax deductions and credits, repealing certain provisions related to capital gains and disallowed expenses, while introducing new measures such as bonus depreciation deductions.

Furthermore, the bill establishes a timeline for the expiration of various tax credits and exemptions, with a cut-off date of June 30, 2025, for new applications and renewals of certain credits, including those for motion picture production and research and development. It also accelerates the termination of various tax credits and modifies tax rates applicable to estates and trusts. The proposed changes aim to simplify the tax code, provide tax relief, and enhance predictability for taxpayers and businesses in Louisiana, while ensuring that the state can effectively manage its fiscal responsibilities.

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)