Below are some of the tax law changes the state of Louisiana has made for tax year 2023:
Filing Status - Qualifying Widow(er) has been updated to Qualifying Surviving Spouse.
Electric and Hybrid Vehicle Road Usage Fee - A road usage fee must be paid by the owner or lessee of an electric or hybrid vehicle registered and operated in Louisiana during the calendar year. The fee is based on a calendar year and is prorated if the vehicle was owned, leased or registered in Louisiana less than a year.
Nonresident & Part-Year Resident (NPR) Worksheet
Add Back of Pass-Through Entity Loss and Pass-Through Entity Exclusion Deduction - A copy of Form R-6981, Louisiana Statement of Owner's Share of Entity Level Tax Items, and a Federal Tax Return 1040 that excludes any income, deductions or other tax items that were included in the calculation of Louisiana net income on the entity's Louisiana Form CIFT-620 must be included with the Louisiana return. Louisiana returns would need to be printed and mailed.
Capital Gain from Sale of Louisiana Business - "Instructions were updated to refer taxpayers to Form R-6180, Net Capital Gains Deduction Worksheet, and LAC 61:I.1312 form more information and for the documentation required to be attached to your return." Louisiana returns would need to be printed and mailed.
Holden's Hope - You may now donate all, or a portion, of your Louisiana refund to Holden's Hope.
Refundable Priority 2 Credits
School Readiness Child Care Directors and Staff - Eligible child care directors and child care staff may qualify for this credit. The amount of the credit is adjusted each year if there is an increase in the Consumer Price Index Urban (CPI-U). The credit amount for 2023 can be found here.
Adoption of Unrelated Infant - A taxpayer that adopted an unrelated child no more than two years of age may qualify for this $5,000 refundable credit. An adoption of an infant from foster care does not qualify. The credit must be taken for the year in which the adoption became final.
Historical Residential - This credit is no longer available beginning tax year 2023.
Nonrefundable Priority 3 Credits
School Readiness and Child Care Credit Carried Forward From 2018 through 2022 - These credits for taxpayers whose federal AGI exceeds $25,000 cannot be refunded. However, any unused amounts from the credit can be used over the next 5 years.
Motion Picture Investment and Motion Picture Infrastructure - "Act 411 of the 2023 Regular Legislative Session prohibits a taxpayer from using a credit if there exists a delinquent federal, state, or local tax obligation. The taxpayer must certify that there is no delinquent federal, state, or local tax obligation on Form R-90150, Taxpayer Certification of Compliance of Tax Obligations for the Motion Picture Production Credit. This form must be attached to the return."
Historic Structures - This credit has been expanded to include expenditures which are incurred on or after January 1, 2023 and to allow the credit for expenditures related to the rehabilitation of a historic structure contributing to the National Register of Historic Places.
Firearm Safety Devices - Act 403 provides a credit for the purchase of one or more firearm safety devices from a federally licenses dealer in a single transaction. The credit is for the amount paid for the qualifying items, including sales tax, limited to $500. Only one credit can be earned per return in a tax year.
Biomed/University Research - This credit is no longer available beginning tax year 2023.
Digital Interactive Media - This credit is no longer available beginning tax year 2023.
For more information regarding the 2023 tax law changes, please click here.