House Bill No. 633, introduced by Representative Bacala, proposes modifications to the statutory timelines, penalty calculations, and exceptions related to the payment of estimated income taxes in Louisiana. The bill amends several sections of the current law, specifically changing the deadline for tax installment payments from the 15th day of the fourth month following the close of the taxable year to the 15th day of the fifth month. Additionally, it repeals certain calculations that previously exempted taxpayers from penalties for underpayment of estimated taxes, streamlining the criteria for such exemptions to a single income tax rate and the standard deduction.

The bill also addresses penalties for excessive adjustments made by corporations regarding estimated tax payments, maintaining a 12% annual penalty on underpaid amounts while clarifying the conditions under which penalties may be waived. It establishes that taxpayers can qualify for exemption from penalties if they pay at least 80% of the tax owed for income earned in each installment period on time. The provisions of this bill will apply to income tax periods beginning on or after January 1, 2026, and will take effect upon the governor's signature or after the lapse of time for gubernatorial action.

Statutes affected:
HB633 Original: 47:118(C)(1), 47:655(C)(1), 47:656(A)(1), 47:118(D)(1)
HB633 Engrossed: 47:118(C)(1), 47:655(C)(1), 47:656(A)(1), 47:118(D)(1)
HB633 Reengrossed: 47:118(C)(1), 47:655(C)(1), 47:656(A)(1), 47:118(D)(1)