Louisiana: BEAT Not Deductible as an Income Tax

Under Louisiana law, corporations can deduct federal income taxes paid. For purposes of the deduction, federal income taxes include taxes based on net income, accumulated earnings, war profits, excess profits, personal holding company income, and tax from recomputation of investment credit. The now-repealed federal corporate Alternative Minimum Tax (AMT) is specifically allowed as part of the federal income tax deduction. In a recent Revenue Information Bulletin 19-010, the Louisiana Department of Revenue clarified that, in its view, the new federal Base Erosion and Anti-Abuse Tax (BEAT) is not included in the calculation of the federal income tax deduction. Notably, unlike the AMT, there is no specific authority to include BEAT in the deduction. Please stay tuned to TWIST for future tax reform-related developments.