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2026 Regular Session ENROLLED
HOUSE BILL NO. 633
BY REPRESENTATIVE BACALA ACT No. 307
1 AN ACT
2 To amend and reenact R.S. 47:118(B), (C)(1), (D)(introductory paragraph), (1)(introductory
3 paragraph) and (b), and (2), 287.655(C)(1), (D)(2) and (3), and (G)(introductory
4 paragraph) and (1), and 287.656(A)(1) and (2)(introductory paragraph) and to repeal
5 R.S. 47:118(D)(1)(c), relative to estimated income tax; to calculate the period of
6 underpayment; to assess penalties for an excessive adjustment; to modify
7 requirements to apply for an adjustment for overpayment; to repeal certain
8 calculations for exemptions from a penalty for an underpayment; to provide for
9 applicability; to provide an effective date; and to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 47:118(B), (C)(1), (D)(introductory paragraph), (1)(introductory
12 paragraph) and (b), and (2), 287.655(C)(1), (D)(2) and (3), and (G)(introductory paragraph)
13 and (1), and 287.656(A)(1) and (2)(introductory paragraph) are hereby amended and
14 reenacted to read as follows:
15 §118. Failure by individual to pay estimated income tax; penalty
16 ***
17 B. Amount of underpayment. (1) For purposes of Subsection A, the amount
18 of the underpayment shall be the excess of:
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1 (a) The amount of the installment which would be required to be paid if the
2 estimated tax were equal to ninety seventy percent (sixty-six and two-thirds percent
3 in the case of individuals referred to in R.S. 47:117(B), relating to income from
4 farming) of the tax shown on the return for the taxable year or, if no return was filed,
5 ninety seventy percent (sixty-six and two-thirds percent in the case of individuals
6 referred to in R.S. 47:117(B), relating to income from farming) of the tax for such
7 year, over
8 (b) The amount, if any, of the installment paid on or before the last date
9 prescribed for such payment.
10 (2) For the purposes of determining the amount of underpayment, the
11 amount of the required installment shall be:
12 (a) Except as provided in Subparagraph (b), the amount of any required
13 installment shall be twenty-five percent of the required annual payment.
14 (b) For purposes of Subparagraph (a), the term "required annual payment"
15 means the lesser of:
16 (i) Ninety Seventy percent of the tax shown on the return for the taxable year
17 (or, if no return is filed, ninety seventy percent of the tax for such year), or
18 (ii) One hundred percent of the tax shown on the return of the individual for
19 the preceding taxable year.
20 (3) For purposes of this Subsection and Paragraph (D)(1) of this Section, in
21 the case of individuals referred to in R.S. 47:117(B) and 117.1(B), relating to income
22 from farming and fishing, the percentage to be applied in lieu of seventy percent
23 shall be sixty-six and two-thirds percent.
24 C. Period of underpayment. The period of the underpayment shall run from
25 the date the installment was required to be paid to whichever of the following dates
26 is earlier:
27 (1) The 15th fifteenth day of the fourth fifth month following the close of the
28 taxable year;
29 ***
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1 D. Exception. Notwithstanding the provisions of the preceding Subsections,
2 the penalty imposed with respect to any underpayment of any installment shall not
3 be imposed if no declaration of estimated tax is required to be filed under pursuant
4 to the provisions of R.S. 47:116(A), or if the total amount of all payments of
5 estimated tax made on or before the last date prescribed for the payment of such the
6 installment equals or exceeds whichever of the following is the lesser the lesser of
7 the following:
8 (1) The amount which would have been required to be paid on or before such
9 the last date prescribed for the payment of that installment if the estimated tax were
10 whichever of the following is the least. the lesser of any of the following:
11 ***
12 (b) An amount equal to the tax computed at the rates applicable to the
13 taxable year on the basis of the taxpayer's status with respect to personal exemptions
14 and credits for dependents under R.S. 47:79 for the taxable year, rate and the
15 standard deduction applicable to the current tax year, pursuant to R.S. 47:294, but
16 otherwise on the basis of the facts shown on his the taxpayer's return for, and the law
17 applicable to, the preceding taxable year, or
18 ***
19 (2) An amount equal to ninety seventy percent of the tax computed, at the
20 rates rate applicable to the taxable year, on the basis of the actual taxable income for
21 the months in the taxable year ending before the month in which the installment is
22 required to be paid.
23 ***
24 §287.655. Failure by corporation to pay estimated income tax
25 ***
26 C. Period of underpayment. The period of the underpayment shall run from
27 the date the installment was required to be paid to whichever of the following dates
28 is the earlier:
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1 (1) The 15th fifteenth day of the fourth fifth month following the close of the
2 taxable year.
3 ***
4 D. Exception. Notwithstanding the provisions of the preceding Subsections,
5 the penalty imposed with respect to any underpayment of any installment shall not
6 be imposed if the total amount of all payments of estimated tax made on or before
7 the last date prescribed for payment of such the installment equals or exceeds the
8 amount which would have been required to be paid on or before such that date, if the
9 estimated tax were whichever of the following is the lesser: the lesser of any of the
10 following:
11 ***
12 (2) An amount equal to the tax computed at the rates rate applicable to the
13 taxable year but otherwise on the basis of the acts shown on the return of the
14 corporation for, and the law applicable to, the preceding taxable year.
15 (3)(a) An amount equal to eighty percent of the tax for the taxable year, on
16 the basis of the actual taxable income for the months in the taxable year ending
17 before the month in which the installment is required to be paid. computed by
18 placing on an annualized basis the taxable income:
19 (i) for the first three months of the taxable year, in the case of the installment
20 required to be paid in the fourth month,
21 (ii) for the first three months or for the first six months of the taxable year,
22 in the case of the installment required to be paid in the sixth month of the taxable
23 year,
24 (iii) for the first six months or the first eight months of the taxable year in the
25 case of the installment required to be paid in the ninth month, and
26 (iv) for the first nine months or for the first eleven months of the taxable
27 year, in the case of the installment to be paid in the twelfth month of the taxable year.
28 (b) For purposes of this Paragraph, the taxable income shall be placed on an
29 annualized basis by
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1 (i) multiplying by twelve the taxable income referred to in Subparagraph (a),
2 and
3 (ii) dividing the resulting amount by the number of months in the taxable
4 year (3, 5, 6, 8, 9, or 11, as the case may be) referred to in Subparagraph (a).
5 ***
6 G. Excessive adjustment under pursuant to R.S. 47:287.656.
7 (1) Addition to tax. If the amount of an adjustment under pursuant to R.S.
8 47:287.656 made before the fifteenth day of the fourth fifth month following the
9 close of the taxable year is excessive there shall be added to the tax under pursuant
10 to this Part for the taxable year a penalty of twelve percent per annum upon the
11 excessive amount from the date on which the credit is allowed or the refund is paid
12 to such the fifteenth day of the fifth month.
13 ***
14 §287.656. Adjustment of overpayment of estimated income tax by corporation
15 A. Application of adjustment.
16 (1) Time for filing. A corporation may, after the close of the taxable year
17 and on or before the fifteenth day of the fourth fifth month thereafter, and before the
18 day on which it files a return for such the taxable year, file an application for an
19 adjustment of an overpayment by it of estimated income tax for such the taxable
20 year. An application under pursuant to this Subsection shall not constitute a claim
21 for credit or refund.
22 (2) Form of application. An application under this Subsection shall be
23 verified in the manner prescribed in the case of a return of the taxpayer and shall be
24 filed in the manner and form prescribed by the secretary of revenue and taxation.
25 The application shall set forth:
26 ***
27 Section 2. R.S. 47:118(D)(1)(c) is hereby repealed in its entirety.
28 Section 3. The provisions of this Act shall be applicable to income tax periods
29 beginning on or after January 1, 2026.
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1 Section 4. This Act shall become effective upon signature by the governor or, if not
2 signed by the governor, upon expiration of the time for bills to become law without signature
3 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
4 vetoed by the governor and subsequently approved by the legislature, this Act shall become
5 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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