La. Bill Seeks To Suspend 2021 Corp. Franchise Tax Amid Virus

Louisiana would suspend the state's corporation franchise tax on domestic and foreign corporations and the initial tax imposed on certain entities in response to the COVID-19 pandemic under a resolution recently introduced in the state House of Representatives.

H.C.R. 43, which was introduced Tuesday by Rep. Rick Edmonds, R-Baton Rouge, would suspend the corporation franchise tax as well as the initial tax levied on entities for the first accounting period in which they are subject to the corporation franchise tax. Suspending the corporation franchise tax aims to mitigate the economic effects of the novel coronavirus pandemic, according to the resolution.

The suspension would take effect for 60 days following adjournment of the state Legislature's 2021 regular session. A corresponding resolution, S.C.R. 26, was introduced in the Senate on Tuesday by Sen. Sharon Hewitt, R-Slidell.

--Editing by Tim Ruel.

For a reprint of this article, please contact reprints@law360.com.