La. R.S. 47:246 — Corporations; deduction from net income from Louisiana sources

A. Subject to the limitations provided herein, there shall be deducted from any net
income from Louisiana sources determined under the provisions of R.S. 47:241 of a
corporation for any year following the close of the first taxable year which commenced on
or after January 1, 1979, the amount of net Louisiana loss incurred in a preceding year
determined as provided in Subsection B of this Section.
B.(1) The amount of net Louisiana loss incurred in any year commencing on or after
January 1, 1979, shall be the amount determined by combining the total of net allocable gain
or loss within or attributable to sources in this state as determined under the provisions of
R.S. 47:243 and the net apportionable gain or loss within or attributable to sources in this
state as determined under the provisions of R.S. 47:244, reduced by the amount of any
federal income tax credit or refund from a prior year attributable to the carry-back of a loss
for federal income tax purposes which is applicable to federal income tax deducted from
Louisiana net income in such prior year.
(2) The net Louisiana loss as thus computed for any tax year may be deducted from
net income calculated under the provisions of R.S. 47:241 in any of the five years
immediately following the year in which the loss occurred.
C. The amount of net Louisiana loss to be deducted in the first taxable year following
the taxable year in which the net loss was incurred shall not exceed the amount of net income
from Louisiana sources calculated under the provisions of R.S. 47:241; the amount of net
Louisiana loss available as a deduction for each of the following four years shall be the
excess, if any, of the net Louisiana loss over the sum of the deductions claimed against net
income from Louisiana sources for each of the years following the year of the net Louisiana
loss.
D. The deduction from net income from Louisiana sources for any year shall not
exceed net income from Louisiana sources for that year and no deduction for a net Louisiana
loss for any years shall be allowed in the year following the year in which the total of net
income from Louisiana sources determined under the provisions of R.S. 47:241 for all years
following the year of the net Louisiana loss equals or exceeds the amount of the net
Louisiana loss.
E. For all claims for this deduction on any return filed on or after July 1, 2015,
regardless of the taxable year to which the return relates, no carry-back election shall be
allowed.
F. A taxpayer may request a tentative refund resulting from the election provided in
Subsection E of this Section using the forms and in the manner prescribed by the secretary.
If the tentative refund is paid, the secretary may recover any amount, to the extent of the
tentative refund, determined not to be an overpayment through any procedure provided in
R.S. 47:1561 within two years from December thirty-first of the year in which the refund was
paid. Any amount determined not to have been overpaid shall bear interest at the rate
provided in R.S. 47:1601 computed from the date the tentative refund was issued until
payment is made by the taxpayer.
G. For all claims for this deduction on any return filed on or after July 1, 2015,
regardless of the taxable year to which the return relates, no refund shall be allowed.
Added by Acts 1979, No. 586, §2. Amended by Acts 1980, No. 632, §1; Acts 1985,
No. 129, §1, eff. Aug. 1, 1985; Acts 2013, No. 341, §1, effective when the 113
th
Congress
of the U.S. grants a similar benefit to taxpayers under federal income tax law and applicable
to taxable years beginning August 1, 2011, and thereafter; Acts 2015, No. 103, §1, eff. July
1, 2015; Acts 2015, No. 123, §1, eff. July 1, 2015; Acts 2015, No. 123, §3, eff. July 1, 2018.
NOTE: See Acts 2015, No. 123, §5, re: applicability.
NOTE: See Acts 2015, No. 103, §2, re: applicability.
NOTE: See Acts 2018, 2
nd
E.S., No. 4, §1, re: applicability.