Louisiana: NOL Ordering Rules Revised

Legislation enacted in Louisiana in 2016 mandated that, for tax years beginning on or after January 1, 2017, when operating losses were carried over from multiple tax years, they were to be applied beginning with the loss for the most recent tax year. This meant that a taxpayer’s most recently generated losses were required to be used before older losses. House Bill 263, which was signed into law on June 11, 2019, provides that for all tax years beginning on and after January 1, 2020, carried over losses are applied beginning with the loss for the earliest taxable year first.  Please contact Amy Hatten at 713-319-2649 with questions.