On February 14th, the Louisiana Legislature will convene for a three-week special session to address the state’s looming $1.9 billion budget shortfall for fiscal years 2016 and 2017. Newly inaugurated Governor John Bel Edwards has proposed a series of tax increases to close the gap. How will they affect your company? What are the state’s other options? This presentation—created by Ryan Public Affairs Director Jason DeCuir, former Chief of Staff, Assistant Secretary and Executive Counsel for the Louisiana Department of Revenue—will highlight the current tax environment, Governor Edwards’s proposed measures to stabilize the budget, and changes to the legislative landscape. Watch the full webinar presentation of these slides here http://ow.ly/Oijy300xSU7

1. Louisiana
Special
Legislative
Session
What to Expect

4. Revenue Source Aug FY16
Forecast
Nov FY16
Forecast
Increase/
(Decrease)
Corporate Income &
Franchise Tax
$789.5 M $588.1 M ($201.4 M)
Individual Income
Tax
$3,012.9 M $3,054.8 M $41.9 M
Sales & Use Tax
Severance Tax
Other LDR Tax
Collections
DNR Royalties,
Rentals, etc.
All other Revenues
(Gaming, DPS, etc.)
Total Taxes,
Licenses & Fees
Dedications
Net General Fund
•
•
•
•
•

6. Source: Revenue Estimating Conference 2015

7. Source: Tax Exemption Budget 2014-15

8. Exemption (Tax Type) Authority FY 13-14
Value
Federal income tax deduction (PIT, CIT) LA
Constitution
$1.012 B
Subchapter S corporation (CIT) Statutory $524 M
Inventory Tax/Ad Valorem Tax Credit (PIT, CIT) Statutory $452 M
Sales of Electric Power or Energy-Nonresidential (Sales) Statutory $403 M
Sales of Food for Preparation and Consumption in the Home
(Sales)
LA
Constitution
$392 M
Sales of Gasoline, Gasohol, and Diesel (Sales) LA
Constitution
$365 M
Net Louisiana Operating Loss (CIT) Statutory $358 M
Excess Federal Itemized Deductions (PIT) Statutory $345 M
Drugs Prescribed by Physicians or Dentists (Sales) LA
Constitution
$283 M
Motion Picture Investor & Infrastructure Credit (PIT, CIT) Statutory $250 M

11. Bill
No.
Author Description FY 16
Fiscal
Notes
Final
House
Vote
HCR8 Montoucet Suspends exemptions on business utilities for
1% of state sales and use tax from July 1, 2015
to 60 days after final adjournment of the 2016
regular legislative session.
$107.2 M Yeas-65
Nays-38
HB62
4
Jackson Reduces certain corporate income tax
exclusions and deductions by 28% from July 1,
2015 to June 30, 2018 (does not affect the S-
Corporations exclusion).
$122 M Yeas-64
Nays-36
HB21
8
Broadwater Eliminates the three-year carry-back option for
net operating loss deductions for corporate
income tax and increases the carry-over period
from 15 years to 20 years.
$29 M Yeas-94
Nays-10
HB62
9
Jackson Reduces certain income and corporate
franchise tax credits and incentives by 28%
from July 1, 2015 to June 30, 2018 (does not
reduce inventory tax credit).
$31.5 M Yeas-66
Nays-35
HB40
2
Stokes Limits availability of tax credit for taxes paid in
other states from July 1, 2015 to June 30, 2018.
$34 M Yeas-96
Nays-7

12. Bill
No.
Author Description FY16
Fiscal
Notes
Final
House
Vote
HB
805
Adams Provides for carry forward rather than refunds of 25% of tax
credits for inventory and natural gas storage paid as
ad valorem taxes to local governments (does not apply to
companies with credits of $1,000 annually or less). Removes
refundability of various R&D tax credits.
$129 M Yeas-58
Nays-39
HB635 Jackson Reduces certain tax rebates by 20% from July 1, 2015 to
June 30, 2018; permanently excludes retail and food service
from the Enterprise Zone program, superseding the
provisions of HB466 by Rep. Barras.
$5 M Yeas-65
Nays-38
HB549 Thibaut Limits amount of severance tax exemption for oil and gas
produced by horizontally drilled wells.
$0 Yeas-76
Nays-24
HB829 Robideaux Caps certified motion picture investor tax credits from
July 1, 2015 to June 30, 2018.
$77 M Yeas-101
Nays-2
HB779 Ponti Reduces the maximum value of the solar energy systems
tax credit and provides for changes regarding eligibility and
requirements to claim the credit.
$19 M Yeas-90
Nays-11
HB119 Ritchie Increases the tax on cigarettes. $106.4 M Yeas-77
Nays-27
TOTAL $660.1 M

19. –
–

22. Sen. John
Alario
Rep. Taylor
Barras

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