An effort to revamp Louisiana’s corporate tax code moved a step closer to passage when it won approval from the House Monday.
House Bills 292 and 293 would eliminate a popular tax break that allows corporations to deduct their federal tax payment on their state income tax return. In conjunction, it would collapse the corporate tax rate at 6.5%. The bills now advance to a Senate committee.
With the backing of the legislative leadership, the corporate tax bills, sponsored by state Rep. Neil Riser, R-Columbia, were approved with little debate. An additional piece of the package, House Bill 275, is awaiting consideration from a House committee.
The changes would be revenue neutral, meaning that the state is projected to collect about the same amount in corporate tax revenue as today.
Companion measures to carry out the same swap for individuals have passed the Senate. State Sen. Bret Allain, R-Franklin, is quarterbacking that effort.
If all the measures pass the Legislature and are signed into law by Gov. John Bel Edwards, they would go to a statewide referendum in October 2021 or October 2022 to change the state Constitution.