Phasing-out corporate franchise tax

Louisiana’s corporate franchise tax would be phased out under a bill given final legislative approval June 6.

The biggest winners would be petrochemical companies HQ'd outside of the state because of the amount of equipment and assets subject to the tax. 

The franchise tax would be reduced by 25% annually but disappear after four years. The legislation is now in Gov. John Bel Edwards' hand. 

According to the Legislative Fiscal Office, phasing out the tax will cost the state up to $163M a year for four years under Senate Bill 1, offered by Sen. Bret Allain (R-Franklin). He called it “the worst tax that Louisiana has on the books.” 

Eliminating the tax would make Louisiana more attractive to investors, citing an analysis by The Tax Foundation, which said Louisiana would rise from 39th to 37th under its State Business Tax Climate Index. 

Allain is offsetting about 20% of the revenue loss with Senate Bill 6, which clips a tax break known as the Quality Jobs Program. (NOLA.com 06/06/23) Louisiana's corporate franchise tax would be phased out | Local Politics | nola.com