This bill amends Louisiana's tax code with a focus on corporate taxation and the treatment of S corporations. A significant change is the repeal of the S corporation exclusion, which previously allowed certain S corporations to exclude a portion of their Louisiana net income from taxation. The bill introduces new definitions and requirements, including the obligation for S corporations to file annual informational returns and the flow-through of tax credits to shareholders starting January 1, 2026. Additionally, it modifies the mobile workforce employer exemption by raising the tax withholding threshold from twenty-five to thirty days, and it repeals specific provisions related to nonresident individuals and the mobile workforce.

Moreover, the bill establishes new guidelines for S corporation carry-forward and carry-back amounts, and allows S corporations to file composite returns for their nonresident shareholders beginning January 1, 2026. It defines terms such as "composite payment" and "composite return," ensuring that tax payments made by the S corporation on behalf of nonresident shareholders count as income tax payments for those shareholders. If these payments exceed the shareholders' tax liabilities, they can receive refunds or credits for future tax periods. The bill also clarifies that credits earned by S corporations will flow through to shareholders based on ownership interests, while repealing certain existing provisions related to qualified Subchapter S subsidiaries. Overall, the legislation aims to streamline corporate taxation and enhance compliance for S corporations and their nonresident shareholders.

Statutes affected:
HB567 Original: 47:2(A), 47:248(B)(1), 47:2(A)(1), 47:1675(F)(1), 39:2(15, 39:1), 47:1675(G)
HB567 Engrossed: 47:2(A), 47:248(B)(1), 47:2(A)(1), 47:1675(F)(1), 39:2(15, 39:1), 47:1675(G)
HB567 Reengrossed: 47:2(A), 47:248(B)(1), 47:2(A)(1), 47:1675(F)(1), 39:2(15, 39:1), 47:1675(G)
HB567 Enrolled: 47:2(A), 47:248(B)(1), 47:2(A)(1), 47:1675(F)(1), 39:2(15, 39:1), 47:750(I), 47:1675(G)
HB567 Act : 47:2(A), 47:248(B)(1), 47:2(A)(1), 47:1675(F)(1), 39:2(15, 39:1), 47:750(I), 47:1675(G)