Senate Bill No. 159, introduced by Senator Cathey, aims to amend the individual income tax exemption for digital nomads in Louisiana by extending the sunset date and expanding the taxable periods for which the exemption applies. The bill proposes to amend R.S. 47:297.18(B)(2) and (I) to allow the exemption to cover taxable years 2022 through 2027, instead of just 2022 through 2025. Additionally, it extends the prohibition on the exemption for wages earned by digital nomads from December 31, 2025, to December 31, 2027.

The current law allows for a 50% income tax exemption on gross wages for qualifying digital nomads, capped at $150,000. The proposed changes will enable more digital nomads to benefit from this tax exemption for an extended period, thereby encouraging remote work and potentially attracting more individuals to Louisiana. The bill is set to take effect on August 1, 2025.

Statutes affected:
SB159 Original: 47:18(B)(2)
SB159 Engrossed: 47:18(B)(2)