House Bill No. by Representative Bacala proposes amendments to various sections of Louisiana's tax code, specifically R.S. 47:118 and R.S. 287.655 and 287.656, which pertain to estimated income tax. Key changes include adjusting the percentage of estimated tax required for individuals and corporations from ninety percent to seventy percent, with a specific exception for individuals involved in farming and fishing, who will continue to use sixty-six and two-thirds percent. The bill also modifies the period of underpayment, changing the deadline from the fifteenth day of the fourth month following the close of the taxable year to the fifth month. Additionally, it introduces new provisions for assessing penalties related to excessive adjustments and clarifies the requirements for applying for adjustments for overpayments.

Furthermore, the bill repeals R.S. 47:118(D)(1)(c) entirely, which likely pertains to previous calculations for exemptions from penalties for underpayment. The new provisions will apply to income tax periods beginning on or after January 1, 2026, and the bill will take effect upon the governor's signature or after the designated period for bills to become law without signature. These changes aim to streamline the process for taxpayers and ensure compliance with updated tax regulations.

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)
HB633 Enrolled: 47:118(B), 47:655(C)(1), 47:656(A)(1), 47:118(D)(1)