Legislation Recap; Approved Corp E-file Vendors
Wednesday, March 2, 2016
Posted by: Ann Lupo
The following bills may be of interest as you are planning and preparing business returns. Some have effective dates that could affect 2015 returns if passed in their current format.
Keep in mind that the special session must end March 9, and to date, it is challenging to know which bills affecting business taxes will make it through the full process to final passage. LCPA's Advocacy Team continues to keep a close eye on the status of these bills and will keep you up to date on what is happening at the Capitol. Click on the bill number for details.
HB20 – NOL
Statutorily clarifies Department position that the NOL deduction allowed is limited to 72% of Louisiana net income. Current law being changed states that it is applicable to returns filed after July 1, 2015, regardless of the taxable year. The bill if passed is effective January 1, 2016. Thus, it seems to apply to 2015 returns being filed during 2016 and is apparently retroactive to the 2014 returns filed after July 1, 2015.
HB46, HB47, and SB6 – Inventory Tax Credit
All bills ultimately limit the credit to 80% of the inventory tax paid and then keep the provisions added last summer regarding the 75% refundability of the amount in excess of tax liability unless the total inventory tax paid is less than $10,000. However, the timing of the application is different for each. HB46 states that the change is effective beginning January 1, 2016 which would indicate it could be applicable to 2015 returns. HB47 states that it applies to inventory taxes paid on or after January 1, 2016, which would seem to not affect 2015 returns. SB6 allows a credit for 100% of the inventory taxes paid prior to January 1, 2016, but disallows a refund for any amount in excess of the tax liability. Both House bills state that no credit authorized by this section shall be allowed on any return filed before July 1, 2016. Whichever bill is passed will be effective upon the signature of the Governor.
HB7 – Dividends from Certain Banking Institutions
Eliminates the 28% reduction to this modification passed in 2015. Applicable to all tax years beginning on or after January 1, 2015.
HB55 – Add Backs for Corporate Tax
Adds back deductions for intangible costs, interest, and management fees paid to related entities with certain exceptions. As written this is effective for tax years beginning on or after January 1, 2016.
HB57 – Taxes Paid to Other States
This bill eliminates the 2018 sunset and makes the 2015 changes permanent. Effective upon signature of the Governor.
HB99 – Single Sales Factor
This bill makes the single sales factor applicable to all businesses apportioning income. Effective for tax periods beginning on or after January 1, 2016.
HB19 – Expands the franchise tax to LLCs taxed as corps and overturns Utelcom
Currently this is effective for tax years beginning January 1, 2017 however, there is an amendment offered that changes this to 2016. There are also two amendments offered that allow companies to deduct the investment in subs also, one requires the sub to also be filing franchise tax returns, the other does not.
* Special thanks to Gary Dressler, LCPA board member at-large and member of the Society's State and Local Tax Committee, for providing the content of this legislative update.
Approved Corporation E-file Vendors
The Louisiana Department of Revenue announced the following approved Corporation E-file vendors.
Corporation Income vendors approved for electronic filing of the CIFT-620:
- Intuit ProSeries
Additional vendors are currently under review by LDR. Consult your tax software vendor for more information.
Vendors approved to file Corporation Income extensions:
- Tax Technologies
- Thomson Reuters
Questions about the content of this Alert should be directed to Linda Babin.