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Louisiana Suspends Corporate Franchise Tax for Small Businesses

June 1, 2020, 9:16 PM

Corporate franchise taxes for small businesses will be suspended for the next year under a resolution adopted Monday by the Louisiana Legislature.

The suspension is expected to cost the state about $6 million, according to a legislative analysis of H.C.R. 66. The state House approved the resolution 66-26, after the Senate’s 27-8 vote.

  • The suspension runs from July 1 through June 30, 2021.
  • It applies to businesses subject to the tax that have up to $500,000 of taxable capital. A first-time initial tax of $110 also is suspended.
  • The measure takes effect immediately without requiring the signature of Gov. John Bel Edwards (D).

To contact the reporter on this story: Jennifer Kay in Miami at jkay@bloomberglaw.com

To contact the editors responsible for this story: Jeff Harrington at jharrington@bloombergtax.com; David Jolly at djolly@bloombergtax.com

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