Attempts to revise Louisiana’s corporate tax law got one step closer to passing when it was approved by Parliament on Monday.
House Bills 292 and 293 would eliminate a popular tax break that allows businesses to deduct their federal tax payment from their state income tax returns. In conjunction with this, the corporate tax rate would decrease to 6.5%. The bills are now going to a Senate committee.
With the support of the legislature, the corporate income tax laws sponsored by Neil Riser, R-Columbia, were passed with little debate. Another part of the package, House Bill 275, is awaiting review by a House Committee.
The changes would be revenue-neutral, meaning the state is expected to collect roughly the same amount of corporate tax revenue as it does today.
Tax swap breeze through the Senate. “We’re trying to move the state forward,” says Senator
Accompanying measures for the implementation of the same exchange for individuals have been approved by the Senate. State Senator Bret Allain, R-Franklin, quarters that effort.
If all of the measures pass the legislation and are legally signed by Governor John Bel Edwards, they would go to a nationwide referendum in October 2021 or October 2022 to change the state constitution.