TAX/CORP INCOME: Provides for a flat rate for purposes of calculating corporate income tax and terminates certain corporate income tax exemptions, deductions, and credits (Item #4) (EN SEE FISC NOTE RV See Note)

HB 2 modifies how corporate income tax is calculated in Louisiana by establishing a flat rate and removing specific exemptions, deductions, and credits that businesses currently use to lower their tax bills. The bill directly affects corporations by eliminating certain tax breaks for items like depreciation and amortization, while also adjusting rules related to federal gross income and various tax credits for local inventory taxes and film production. Additionally, the legislation changes how unused tax credits can be carried forward, particularly restricting refunds for C-corporations in taxable periods starting on or after January 1, 2025. These changes aim to simplify the tax code by standardizing the calculation method and limiting the ability of some companies to retain excess credits for future years.