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Louisiana: New Law Shifts Measure Date for Triggered Rate Changes and Provides Some PTE Tax Revisions
S.B. 3, signed by gov. 6/28/23. New law revises the measure date for Louisiana’s potentially triggered tax rate reductions for individual income tax and corporate franchise tax purposes, requiring the comparison between actual collections and the counterfactual baseline as provided under statute to be performed annually beginning on January 1, 2024 (rather than on April 1, 2024) and each January 1 (rather than April 1) thereafter for ten years.
H.B. 428, signed by gov. 6/29/23. Applicable for taxable periods beginning on or after January 1, 2023, another recently signed bill revises aspects of Louisiana law permitting certain pass-through entities to elect to be taxed under the corporate rules at the entity level. The legislation extends eligibility for the flow-through entity income exclusion to estates, trusts, and partnerships. The legislation also provides for an application for prospective termination of the pass-through entity tax election. See forthcoming Multistate Tax Alert for more details on the new pass-through entity tax provisions.
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