Louisiana’s individual income tax was first imposed in 1934. The tax is assessed on a resident individual’s income derived from all sources and a nonresident individual’s income derived from Louisiana sources. Resident individu- als are allowed a credit for income tax paid to other states on income that is also taxed by Louisiana.
Like other states that impose a personal income tax, Louisiana closely follows the federal system utilizing the federal definition of income and deductions with certain modifications. Louisiana tax-table income is a modified federal adjusted gross income less federal income taxes paid.
The income tax base is partially diminished by a combined personal exemption/standard deduction of $4,500 for single filers and married taxpayers filing separately or $9,000 for married taxpayers filing jointly, head-of- household filers, and qualifying widowers. Additional $1,000 deductions are given for each dependent and each taxpayer who is blind or 65 years of age or older.
Any resident, nonresident, or part-year resident required to file a tax return must do so by the fifteenth day of the fifth month after the close of their taxable year.
Legal Citations
R.S. 47:21 through 47:285, R.S. 47:290 through 47:299
Tax Base
The tax base is comprised of federal adjusted gross income less federal income tax and the portion of federal item- ized deductions that were in excess of the federal standard deduction with adjustments for other modifications to federal adjusted gross income.
The income tax brackets have been revised for all taxable periods beginning after December 31, 2002, with the passing of the amendment of La. Const. art. VII, §4(A) and passing of La. Const. art. VII, §2.2. Legislation was passed in 2008 to return the four percent and six percent brackets to those provided for before the enactment of the Stelly Plan for tax years beginning after December 31, 2008.
Tax Rate
Tax tables are used to determine tax liability using rates as follows:
Effective for taxable periods
beginning after December 31, 2002 beginning after December 31, 2008Effective for taxable periods
Married couple filing joint return or qualifying widow:
2% on the first $25,000 2% on the first $25,000 4% on the next $25,000 4% on the next $75,000 6% on the taxable income above
$50,000 6% on the taxable income above $100,000
Single, Head of Household, or married filing separately
2% on the first $12,500 2% on the first $12,500 4% on the next $12,500 4% on the next $37,500 6% on the taxable income above
$25,000 6% on the taxable income above $50,000
Types of Tax Exemptions
Individual income tax exemptions are in the form of exemptions/exclusions, deductions, and credits. Exemptions/ exclusions gen erally mean a specific item of income that is not included in taxable income. Deductions are gener- ally defined as a reduction in net income to arrive at taxable income. Credits are generally defined as a reduction to the amount of tax due. All exemptions related to individual income tax are contained in this report.
The federal income tax deduction, although a statutory deduction, is also required by the state constitution. Repeal of this deduction requires a vote of the people. For this reason, this deduction has been separated from the other exemptions and appears at the end of this section.
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Individual Income Tax
{ Introduction }
Significant Changes Fiscal Year 2012-2013
Acts 2013, No. 167 amends R.S. 47:299.2(1)(d) to allow New Orleans and Orleans Parish to make offset claims to the secretary of the Department of Revenue against any amounts refundable to an individual because of over- payment of Louisiana individual income taxes for debts owed by the individual to either New Orleans or Orleans Parish. Effective for tax years beginning January 1, 2013.
Acts 2013, No. 219 amends R.S. 47:6035(C) to provide that nothing in the current law is to be construed to authorize a tax credit for the cost of a purchase of, or conversion of a vehicle to, a flexible fuel vehicle that is designed to run on an alternative fuel and either petroleum gasoline or petroleum diesel if the vehicle has only a single fuel storage and delivery system and retains the capability to be propelled by petroleum gasoline or petro- leum diesel. Effective June 10, 2013.
Acts 2013, No. 272 enacts R.S. 47:297.6(C) to changes the sunset date for the residential structure rehabilitation credit to January 1, 2018.
Acts 2013, No. 304 amends R.S. 47:6026(E)(1) to extend the Cane River Heritage Tax Credit to January 1, 2018. It was set to expire January 1, 2014.
Acts 2013, No. 406 amends the School Readiness tax credit provisions to provide for a state administrator of the Child Care Development Fund. The program will no longer be administered by the Department of Children and Family services. Effective July 1, 2013.
Acts 2013, No. 427 amends R.S. 47:6035(B)(1) to change the definition of “alternative fuel” to “natural gas, lique- fied petroleum gas, and any nonethanol based advanced biofuel. “Alternative fuel” may also mean electricity, if the vehicle meets all of the following criteria: (1) the vehicle has at least four wheels; (2) the vehicle is manufactured primarily for use on public streets, roads, and highways and is able to attain a maximum speed of at least 55 miles per hour; and (3) the vehicle is propelled by an electric motor which draws electricity from a battery which has a capacity of not less than four kilowatt hours and is capable of being recharged from an external source of electric- ity. Effective for tax years beginning January 1, 2014.
Acts 2013, No. 428 amends R.S. 47:6030 to repeal the tax credit for wind energy systems and changes the tax credit to provide for solar electric and solar thermal energy systems. Repeals the tax credit for installations in a residential rental apartment complex. Provides for a total phase-out of the credit on January 1, 2018 and amends the amount of the tax credit for leased systems, as follows: (a) the tax credit shall be equal to fifty percent of the first twenty-five thousand dollars of the cost of purchase for a system installed before January 1, 2014; and (b) for a system installed on or after January 1, 2014 and before January 1, 2018, the tax credit shall be equal to thirty-eight percent of the first twenty-five thousand dollars of the cost of purchase. Provides further limitations on the credit as follows: (a) for a system purchased and installed on or after July 1, 2013, and before July 1, 2014, the system shall cost no more that four dollars and fifty cents per watt and provide for no more than six kilowatts of energy; (b) for a system purchased and installed on or after July 1, 2014, and before July 1, 2015, the system shall cost no more than three dollars and fifty cents per watt and provide for no more than six kilowatts of energy; and (c) for a system purchased and installed on or after July 1, 2015, and before January 1, 2018, the system shall cost no more than two dollars per watt and provide for no more than six kilowatts of energy. In addition, the Act provides that sys- tems must be sold and installed by a person who is licensed by the Louisiana State Licensing Board for Contractors and any system components purchased on or after July 1, 2013 must be compliant with the requirements of the federal American Recovery and Reinvestment Act (ARRA). Any non-ARRA compliant components purchased before July 1, 2013 must be placed in service prior to January 1, 2014 to be eligible for the credit. Finally, the Act provides that with respect to each residence, only one tax credit for the purchase and installation of a system shall be allowed. Effective July 1, 2013.
{ EXEMPTIONS/EXCLUSIONS }
1. Interest on State or Local Government Obligations . . . . 133
R.S. 47:48, R.S. 47:293(9)(b)
2. Exemption for Resident Estates and Trusts . . . . 133
R.S. 47:300.6(B)(2)(c)
3. Annual Retirement Income Exclusion . . . . 134
R.S. 47:44.1(A)
4. Disability Income Exclusion . . . . 134
R.S. 47:44.1(B)
5. State Employees, Teachers, and Other Retirement Benefits Exclusion . . . . 135 6. Federal Retirement Benefits Exclusion . . . . 136 7. Social Security Benefits Exclusion . . . . 137
R.S. 47:44.2
8. Military Pay Exclusion . . . . 137
R.S. 47:293(9)(e)
9. S Bank Income Exclusions . . . . 138
R.S. 47:297.3, R.S. 47:300.6 (B)(2)(d), R.S. 47:300.7 (C)(2)(c)
{ DEDUCTIONS }
10. Deduction for Adaptive Home Improvements for Disabled Individuals . . . . 138
R.S. 47:59.1
11. Dependent Exemption/Deduction. . . . 139
R.S. 47:79(B), R.S. 47:294(B)
12. Deduction for Construction Code Retrofitting . . . . 139
R.S. 47:293(2)(a)(i)
13. Excess Federal Itemized Deductions . . . . 140
R.S. 47:293(3)
14. Deduction for Hurricane Recovery Entity Benefits . . . . 140
R.S. 47:293(5)
15. Deduction for Recreation Volunteer . . . . 141
R.S. 47:293(7)(a)
16. Deduction for Volunteer Firefighter . . . . 141
R.S. 47:293(7)(a)
17. Deduction for START Savings Program Contribution . . . . 142
R.S. 17:3095(A)(1), 17:3098, 47:120.62, 47:293
18. Deduction for I.R.C. Section 280C Expense . . . . 142
R.S. 47:293(9)(a)(ix)
19. Deduction for Teachers . . . . 143
R.S. 47:293
20. Deduction for Net Capital Gains . . . . 143
R.S. 47:293(9)(a)(xvii)
21. Personal Exemption—Standard Deduction . . . . 144
R.S. 47:294(A)
22. Deduction for Military Family Assistance Fund . . . . 144
R.S. 47:297.5
23. Elementary & Secondary School Tuition Deduction . . . . 145
R.S. 47:297.10
24. Educational Expenses for Home-Schooled Children Deduction . . . . 145
R.S. 47:297.11
25. Deduction for Fees and Other Educational Expenses for a Quality Public Education . . . . 146
R.S. 47:297.12
{ CREDITS }
26. Net Income Taxes Paid to Other States . . . . 146
R.S. 47:33
27. Contribution of Tangible Personal Property of a Sophisticated & Technological Nature to Educational Institutions . 147
R.S. 47:37, R.S. 47:287.755
28. Certain Disabilities. . . . 147
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