La. Revenue and Taxation § 47:287.86

Current with changes from the 2024 Legislative Session

Section 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.

La. Revenue and Taxation § 47:287.86

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.

Amended by Acts 2021, No. 459,s. 1, eff. 6/24/2021.

Amended by Acts 2019, No. 304,s. 1, eff. 6/11/2019.

Amended by Acts 2016EX1, No. 24,s. 1, eff. 1/1/2017.

Amended by Acts 2016EX1, No. 6,ss .1, .3eff. 1/1/2016.

Amended by Acts 2015, No. 103,s. 1, eff. 7/1/2015.

Amended by Acts 2015, No. 123,s. 3, eff. 7/1/2018.

Acts 1989, No. 770, §1, eff. 1/1/1989; Acts 1990, No. 849, §2, eff. for taxable years beginning after 12/31/1989; Acts 1992, No. 1083, §1, eff. for all open taxable periods; Acts 2002, No. 10, §1, eff. 6/7/2002.

See Acts 2016, 1st Ex. Sess., No. 6 and Acts 2016, 2nd Ex. Sess., No. 2, regarding applicability.