TAX/INCOME TAX: Establishes an individual income tax deduction for net capital gains (OR DECREASE GF RV See Note)

HB 485 creates a new 50% tax deduction for Louisiana residents on net capital gains from selling ownership in Louisiana-based, non-publicly traded businesses (like local LLCs or partnerships) they've held for at least five years. It directly affects individual taxpayers who sell qualifying business interests in Louisiana, reducing their taxable income by half the profit from such sales. The deduction applies only to gains treated as capital gains under federal tax rules and requires the business to be commercially domiciled in Louisiana. The bill takes effect for sales occurring on or after January 1, 2025, and the state will simplify claiming the deduction through new Department of Revenue rules.