La. R.S. 47:53.1 — Recovery of bad debts, prior taxes, and delinquency amounts

Income attributable to the recovery during the taxable year of a bad
debt, prior tax, or delinquency amount, to the extent of the amount of the
recovery exclusion with respect to such debt, tax, or amount, shall not be
included in gross income and shall be exempt from taxation under this
Chapter. For the purposes of this Section:
(1) The term "Bad debt" means a debt on account of worthlessness or
partial worthlessness of which a deduction was allowed for a prior taxable
year.
(2) "Prior tax" means a tax on account of which a deduction or credit
was allowed for a prior taxable year.
(3) "Delinquency amount" means an amount paid or accrued on
account of which a deduction or credit was allowed for a prior taxable year and
which is attributable to failure to file return with respect to a tax, or pay a tax,
within the time required by the law under which the tax is imposed, or to
failure to file return with respect to a tax or pay a tax.
(4) "Recovery exclusion", with respect to a bad debt, prior tax, or
delinquency amount, means the amount, determined in accordance with
regulations prescribed by the collector, of the deductions or credits allowed,
on account of such bad debt, prior tax, or delinquency amount, which did not
result in a reduction of the taxpayer's tax under this Chapter or corresponding
provisions of prior statutes reduced by the amount excludible in previous
taxable years with respect to such debt, tax, or amount under this paragraph.