At the conclusion of the 3rd Extraordinary Session of 2024, the Louisiana Legislature passed a series of bills aimed at reforming the Louisiana tax code.
LDR Rule Amendments and Emergency Rule
As we approach the year-end, taxpayers should consider the following amendments to regulations made by the Louisiana Department of Revenue earlier this year that go into effect today and on January 1st and the emergency rule regarding the following real and personal property regulations: LAC 61:V.703, 705, 901, 903, 907, 1007, 1103, 1301, 1303
Elimination of Louisiana’s Net Capital Gains Deduction from Income Tax
Owners of businesses in Louisiana considering a sale or divestiture of their ownership interests or substantially all of the assets of a business entity domiciled in this state should be advised that during the 2024 Third Extraordinary Session the legislature repealed the net capital gains deduction in its entirety.
Proposed Changes to Louisiana Severance Tax Scheme
In keeping with the Governor’s call for the Legislature’s 2024 Third Extraordinary Session, House Bill No. 25 was introduced on Monday seeking to adjust severance tax rates, eliminate exemptions, and modify administrative procedures and dedications of mineral revenues.
Louisiana Extends Certain Filing and Payment Deadlines Due to Hurricane Francine
On September 13, 2024, the Louisiana Department of Revenue (the “Department”) published Revenue Information Bulletin Number 24-019 granting automatic extensions to eligible individuals and businesses impacted by Hurricane Francine.
Louisiana Department of Revenue Issues Emergency Regulation on Louisiana Net Capital Gains Deduction
The Louisiana Department of Revenue has drafted an emergency regulation regarding the Louisiana net capital gains deduction, Louisiana Administrative Code 61:I.1312. The emergency regulation will be published in the January 20, 2024 issue of the Louisiana Register, but the rule is effective for all transactions occurring on or after January 1, 2024.
IRS Introduces Withdrawal Process For Wrongly-Claimed Employee Retention Tax Credit
On Thursday, the IRS introduced certain criteria that, if satisfied, allow a small business to withdraw a prior claim for the Employee Retention Tax Credit (ERC). Certain businesses paying wages to employees during the COVID-19 pandemic and experiencing a “significant decline in gross receipts” were eligible to apply for the ERC.
Louisiana State Tax Relief for Saltwater Intrusion
The Louisiana Department of Revenue followed the lead of the Internal Revenue Service and granted filing tax relief for taxpayers impacted by the saltwater intrusion emergency.
Louisiana Third Circuit Affirms Authority of Tax Commission to Correct Pipeline Property Tax Assessments
In a unanimous decision, a three-judge panel of the Louisiana Third Circuit Appeal affirmed the authority of the Louisiana Tax Commission to correct property tax assessments of #pipelines when a local assessor uses values that are too high or do not reflect fair market value. Cheryl Kornick represented the taxpayer in this matter.
New IRS Guidance Confirms No Stepped-Up Basis for Certain Grantor Trust Assets
New IRS guidance confirms no step up in basis for grantor trust assets that are not included in the decedent’s estate.
Rev. Rul. 2023-02 clarifies that the basis adjustment under section 1014 of the Internal Revenue Code does not apply to “step up” the basis for assets in grantor trusts treated as owned by the