This bill expands a property tax exemption to include specific aerospace manufacturing facilities that were previously only available to other types of manufacturers. By updating the relevant state statute from Section 1703.2 to Section 1703.4, the legislation allows these aerospace companies to qualify for reduced ad valorem taxes on their real estate and equipment. The change is designed to provide financial relief to aerospace businesses by lowering their annual property tax bills, while leaving the existing rules for other manufacturing sectors unchanged.
HB 411, titled "The Pelican Promise: Zero in Ten Income Tax Freedom Act," gradually reduces Louisiana's individual income tax rates over 12 years, phasing out the tax entirely by 2039. It lowers the tax rate from 3% for 2027 to 0% for all income starting in 2039, with incremental reductions each year (e.g., 2.9% in 2028, 2.8% in 2029, etc.). The bill directly affects all Louisiana residents who pay state income tax, as it applies to taxable income beginning January 1, 2027. The key mechanism is a scheduled, step-by-step rate reduction, culminating in no state income tax on individual earnings after 2038. The law takes effect January 1, 2027, and is scheduled to eliminate the tax entirely by 2039.
HB 614 creates a state sales tax rebate for businesses that pay sales tax on lodging and meals for workers performing disaster or emergency response work during a declared state disaster. It directly affects qualifying businesses deploying personnel to disaster sites, allowing them to reclaim the actual sales tax paid on these purchases. To claim the rebate, businesses must apply to the Department of Revenue with proof of tax paid, and the rebate expires on January 1, 2032. The bill provides clear eligibility rules and application procedures without specifying a rebate amount or percentage.
HB 650 creates a rebate for businesses that paid local inventory taxes but are ineligible for an existing state tax credit (R.S. 47:6006). It authorizes a rebate equal to the percentage used in the existing credit, based on the amount of local inventory taxes paid to parishes or cities in the prior year. Businesses must apply by June 30th of the following year with required documentation, but cannot claim this rebate if they already received other state tax benefits for the same taxes. The rebate is funded from current state tax collections and applies only to taxes paid after December 31, 2025, becoming effective January 1, 2027.
HB 253 repeals Louisiana's state income tax on individuals, estates, and trusts, eliminating a tax that currently applies to residents and nonresidents earning income within the state. The bill removes specific tax provisions (R.S. 47:32(A), 295(A), 300.1, and 300.2) from the state code, effective January 1, 2027. This change directly affects taxpayers who would otherwise pay state income tax on personal earnings, estates, or trust income. The repeal applies to all taxable years beginning on or after January 1, 2027, with no new tax mechanisms replacing the repealed provisions.
HB 898, the "Louisiana Income Tax Elimination Act" (LITE Act), would reduce Louisiana's individual income tax rate starting in 2027 under specific conditions. The reduction equals 50% of one-time state funds certified as nonrecurring revenue by the budget committee and confirmed by revenue estimators. If the calculated rate drop would be 0.05% or less, no change occurs. The Department of Revenue must publish the new rate online and in official tax tables. This applies directly to Louisiana residents filing individual income tax returns.
HB 633 modifies Louisiana's estimated income tax rules for individuals and corporations, primarily affecting taxpayers who make quarterly estimated payments. It introduces a new safe harbor to avoid penalties: if taxpayers pay at least 80% of their annualized tax (based on income earned in the first 3-11 months of the year), they won’t face penalties for underpayment. The bill also adjusts timelines for penalty calculations, extends deadlines for applying to adjust overpayments, and repeals an outdated penalty exception. These changes apply to tax years beginning January 1, 2026.
