Corporations may deduct a prior Louisiana net loss from Louisiana-source income, but the deduction is limited, carry-backs are barred for claims filed on or after July 1, 2015, and the secretary may recover improper tentative refunds.
§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 113th 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, 2nd E.S., No. 4, §1, re: applicability.