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BHBM Tax Law Alert | Franchise Tax Suspension


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LOUISIANA UPDATE

Louisiana Legislature Adopts Resolution to Suspend Corporate Franchise Tax for Small Businesses

On June 1, 2020, the Louisiana Legislature adopted House Concurrent Resolution No. 66 to suspend corporate franchise taxes for small businesses from July 1, 2020, through June 30, 2021. The resolution suspends the lower tier of the corporation franchise tax levied on domestic and foreign corporations and the initial tax levied on certain business entities subject to the corporate franchise tax.

Specifically, the suspension applies to businesses subject to the tax that have up to $500,000 of taxable capital. It also suspends the first-time initial tax of $110.

The measure takes effect immediately without requiring the signature of Governor John Bel Edwards.

To visit our COVID-19 Business Resource Center, including our previous Tax Law Alerts, click here.


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