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Bill > HB1
LA HB1
LA HB1Provides for a flat rate for purposes of calculating income tax for individuals, estates, and trusts, increases the standard deduction, and modifies or repeals certain income tax deductions and credits (Item #5 and 6) (RE1 DECREASE GF RV See Note)
summary
Introduced
11/01/2024
11/01/2024
In Committee
11/19/2024
11/19/2024
Crossed Over
11/13/2024
11/13/2024
Passed
Dead
11/22/2024
11/22/2024
Introduced Session
Potential new amendment
2024 Third Extraordinary Session
Bill Summary
AN ACT To amend and reenact R.S. 47:32(A), 32.1, 44.1(A), 287.732.2(B), 287.750(I), 293(9)(a)(iv) and (10), 294, 295, the Section heading of 297.14, 300.1, 300.3(3), 4302(B), 6007(I), 6015(J), 6019(A)(1)(a)(i), 6020(H), 6022(D)(4)(introductory paragraph), and 6023(I), and R.S. 51:1787(L) and 2461, to enact R.S. 47:293(9)(a)(xxvi), 297.25, 300.6(B)(3), 300.7(C)(3), 3204(M), and 6022(M) and R.S. 51:2399.3(C), and to repeal R.S. 47:32(B), 79, 293(9)(a)(ix) and (xvii), 293.2, 297, 297.2, 297.6, 297.7, 297.9, 297.20(A)(2), and 297.21(A)(2), relative to income tax; to provide for a flat tax rate for individuals, estates, and trusts; to provide for the calculation of individual income tax liability; to provide for the reduction of individual income tax rates under certain circumstances; to provide for certain requirements and limitations for the reduction of individual income tax rates; to provide for the amount of the standard deduction; to reduce certain deductions and credits; to increase the amount of the deduction for certain annual retirement income; to provide for certain definitions; to establish bonus depreciation and bonus amortization deductions; to provide for certain limitations with respect to the bonus depreciation and amortization; to provide for personal exemptions and credits for dependents; to provide for the rates and brackets for estates and trusts; to provide for the termination of certain credits claimed against income tax liability; to repeal provisions relative to elections made HLS 243ES-13 REENGROSSED HB NO. 1 by certain corporations and flow-through entities; to repeal provisions for certain disallowed expenses; to repeal the deduction for net capital gains; to repeal regulation requirements for the capital gains deduction; to repeal certain limitations on the deduction for children adopted from foster care; to repeal certain limitations on the deduction for the private adoption of certain children; to provide for applicability; to provide for an effective date; and to provide for related matters.
AI Summary
This bill provides for a flat income tax rate of 3% for individuals, estates, and trusts, increases the standard deduction, and modifies or repeals certain income tax deductions and credits. Specifically, it:
- Establishes a flat 3% income tax rate for individuals, estates, and trusts, replacing the previous graduated rates.
- Increases the standard deduction to $12,500 for single filers and $25,000 for married filing jointly/head of household filers, with annual adjustments for inflation starting in 2026.
- Repeals various deductions and credits, including the net capital gains deduction, certain deductions for children adopted from foster care, and certain limitations on the private adoption deduction.
- Allows a bonus depreciation deduction for costs of qualified property, qualified improvement property, and research and experimental expenditures.
- Phases out or eliminates various tax credit programs, such as the motion picture production tax credit and the sound recording investor tax credit, by June 30, 2025.
The bill also includes provisions for reducing the individual income tax rate if certain revenue targets are met, starting in October 2026.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage. (on 11/20/2024)
Official Document
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