La. R.S. 47:287.86 — Net operating loss deduction

A. Deduction from Louisiana net income. Except as otherwise provided, 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, there shall be allowed for the taxable year a deduction
reducing Louisiana net income in an amount equal to seventy-two percent of the net
operating loss carryovers to such year, but the deduction shall never exceed seventy-two
percent of Louisiana net income.
B. Net operating loss carryovers. (1) Except as otherwise provided for in Paragraph
(2) of this Subsection, 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, the taxable years to which a
Louisiana net loss may be carried shall be a net operating loss carryover to each of the twenty
taxable years following the taxable year of the loss.
(2) For all claims for this deduction on any return filed on or after January 1, 2022,
for net operating losses relating to loss years on or after January 1, 2001, the loss may be
carried to each taxable year following the loss year until the loss is fully recovered.
C. Manner and amount of carryovers. 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, the
entire amount of Louisiana net loss for any taxable year, hereinafter the "loss year", shall be
carried over to the earliest of the taxable years allowed. The portion of such loss which shall
be carried to each of the other taxable years allowed by Subsection B of this Section shall be
the excess, if any, of the amount of such loss over the aggregate of the Louisiana taxable
income for each of the taxable years to which such loss may be carried. For the purposes of
this Subsection:
(1) Louisiana taxable income shall not be adjusted to less than zero.
(2) In calculating the aggregate Louisiana taxable incomes in cases where more than
one loss year must be taken into account, the various net operating loss carryovers to such
taxable year are considered to be applied in reduction of Louisiana net income in the order
of the taxable years from which such losses are carried over, beginning with the loss for the
earliest taxable year.
D. Statement with tax return. Every corporation claiming a net operating loss
deduction for any taxable year shall file with its return for such year a concise statement
setting forth the amount of the net operating loss claimed and all material and pertinent facts
relative thereto, including a detailed schedule showing the computation of the net operating
loss deduction.
E. Net operating loss carryovers. Notwithstanding any other provisions of this
Chapter to the contrary, 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, the acquiring corporation
shall succeed to and take into account, as of the close of the day of distribution or transfer,
the aggregate net operating loss carryovers of the distributors or transferor corporation as
determined under this Section, subject to federal law and the limitations provided thereunder.
Acts 1989, No. 770, §1, eff. Jan. 1, 1989; Acts 1990, No. 849, §2, eff. for taxable
years beginning after Dec. 31, 1989; Acts 1992, No. 1083, §1, eff. for all open taxable
periods; Acts 2002, No. 10, §1, eff. June 7, 2002; Acts 2013, No. 341, §1, applicable to
taxable years on or after Jan. 1, 2013; Acts 2015, No. 103, §1, eff. July 1, 2015; Acts 2015,
No. 123, §1, eff. July 1, 2015; §3, eff. July 1, 2018; Acts 2016, 1st Ex. Sess., No. 6, §§1, 3,
eff. Jan. 1, 2016; Acts 2016, No. 24, 1st Ex. Sess., §1, eff. Jan. 1, 2017; Acts 2016, 2nd Ex.
Sess., No. 2, §§1, 2, eff. June 22, 2016; Acts 2019, No. 304, §1, eff. June 11, 2019; Acts
2021, No. 459, §1, eff. June 24, 2021.
NOTE: See Acts 2015, No. 123, §5, regarding applicability.
NOTE: See Acts 2015, No. 103, §2, regarding applicability.
NOTE: See Acts 2016, 1st Ex. Sess., No. 6 and Acts 2016, 2nd Ex. Sess., No. 2,
regarding applicability.
NOTE: See Acts 2018, 2nd E.S., No. 4, §1, re: applicability.
NOTE: See Acts 2019, No. 304, re: applicability.