La. Revenue and Taxation § 47:287.93

Current with changes from the 2024 Legislative Session

Section 47:287.93 - Computation of net allocable income from Louisiana sources

A. Allocation of items of gross allocable income. Items of gross allocable income or loss shall be allocated directly to the states within which such items of income are earned or derived, as follows:

(1) Rents and royalties from immovable or corporeal movable property shall be allocated to the state where such property is located at the time the income is derived.

(2) If the corporation elects to pay tax on interest income as provided in R.S. 47:287.738(F)(2), interest received by the corporation, shall be allocated to the state in which the securities or credits producing such income have their situs, which shall be at the business situs of such securities or credits if they have been so used in connection with the taxpayer's business as to acquire a business situs, or in the absence of such a business situs, shall be at the commercial domicile of the taxpayer, provided that interest on securities and credits having a situs in Louisiana received by a corporation from another corporation which is controlled by the former through ownership of fifty percent or more of the voting stock of the latter, shall be allocated to the state or states in which the real and tangible personal property of the controlled corporation is located, on the basis of the ratio of the value of such property located in Louisiana to the total value of such property within and without the state.

(3) Royalties or similar revenue from the use of patents, trademarks, copyrights, secret processes, and other similar intangible rights shall be allocated to the state or states in which such rights are used. A mineral lease, royalty interest, oil payment, or other mineral interest shall be allocated to the state in which the property subject to such mineral interest is situated.

(4) Income from construction, repair, or other similar services shall be allocated to the state in which the work is done.

(5) For purposes of this Part only, estates, trusts, and partnerships having a corporation as a member or beneficiary shall compute, allocate, and apportion their income or loss within and without this state in accordance with the processes and formulas prescribed by this Part, and the share of any corporation member or beneficiary in the net income or loss from sources in this state so computed shall be allocated to this state in the return of such corporation.

B. Net allocable income. Net allocable income or loss is computed by subtracting the following from Louisiana gross allocable income:

(1) All expenses, losses, and other deductions defined in R.S. 47:287.63 as allowable deductions which are directly attributable to Louisiana gross allocable income.

(2) A ratable portion of such allowable deductions which are not directly attributable to any item or class of gross income.

La. Revenue and Taxation § 47:287.93

Acts 1986, 1st Ex. Sess., No. 16, §1, eff. Dec. 24, 1986; Acts 1987, No. 53, §1; Acts 1993, No. 690, §1, eff. June 21, 1993, for all taxable periods beginning after Dec. 31, 1992; Acts 2002, No. 16, §1, eff. June 7, 2002; Acts 2005, No. 401, §1, eff. for all taxable periods beginning after Dec. 31, 2005.

Acts 1986, 1st Ex. Sess., No. 16, §1, eff. 12/24/1986; Acts 1987, No. 53, §1; Acts 1993, No. 690, §1, eff. 6/21/1993, for all taxable periods beginning after 12/31/1992; Acts 2002, No. 16, §1, eff. 6/7/2002; Acts 2005, No. 401, §1, eff. for all taxable periods beginning after 12/31/2005.

SEE ACTS 1987, NO. 53, §2.