Louisiana Governor Signs Law Regarding Taxation of Subchapter S Corporations, Other Flow-Through Entities

The Louisiana Governor June 22 signed a law regarding the taxation of Subchapter S corporations and other flow-through entities for corporate income tax purposes. The law includes measures: 1) allowing the entities to elect to be taxed for state purposes as if they filed a C-corp return at the federal level, and pay state tax at the entity level; 2) allowing a state income tax deduction equal to the federal income tax they would have paid on their Louisiana net income if they had filed a C-corp return at the federal level; 3) setting the tax rate on taxable income ...