§287.85. Federal income tax deduction
A. In computing Louisiana taxable income under R.S. 47:287.79, there shall be
allowed as a deduction federal income taxes paid.
B. For purposes of this Section, federal income taxes shall include taxes based on net
income, accumulated earnings, war profits, excess profits, personal holding company
income, and tax from recomputation of investment credit. The alternative minimum tax is
a federal income tax allowable to the extent provided in R.S. 47:287.83(B).
C.(1) The amount of federal income tax to be deducted shall be that portion of the
total federal income tax, after all credits, which is levied with respect to the particular income
derived from sources in this state to be computed in accordance with rules and regulations
prescribed by the secretary. Proper adjustment shall be made for the actual tax rates applying
to different classes of income and for all differences in the computation of net income for
purposes of federal income taxation as compared to the computation of net income under this
(2) "Credits" as used in this Subsection does not include overpayments of prior year
taxes allowed as a credit, estimated tax payments or similar prepayments, credit for prior year
alternative minimum tax which is allowed as a credit against the current regular federal
income tax, or federal income tax credits determined by the secretary to be presidential
disaster area disaster relief credits.
D. A corporation that files or is included with affiliates in a consolidated federal income tax
return shall compute its federal income tax deduction in accordance with rules and
regulations prescribed by the secretary.
Acts 1986, 1st Ex. Sess., No. 16, §1, eff. Dec. 24, 1986; Acts 1987, No. 53, §1; Acts
1997, No. 165, §1, eff. June 13, 1997, for taxable periods that have not prescribed on June
13, 1997; Acts 2005, 1st Ex. Sess., No. 23, §1, eff. Jan. 21, 2006.
NOTE: SEE ACTS 1987, NO. 53, §2.