LA HB567

S corporations will no longer be subject to Louisiana corporate income tax directly; instead, income will pass through to shareholders who report it on their individual, fiduciary, or corporate returns, effective for tax periods beginning January 1, 2026

The mobile workforce exemption threshold increases from 25 days to 30 days, meaning nonresident employees working in Louisiana for 30 or fewer days per calendar year are exempt from state income tax withholding

S corporations may file composite returns and make composite tax payments on behalf of nonresident shareholders, calculated at the maximum individual tax rate multiplied by each shareholder's share of Louisiana-source income

The S corporation exclusion allowing Louisiana resident shareholders to exclude a portion of S corporation income is repealed, along with the qualified Subchapter S subsidiary exclusion provisions

Tax credits earned by S corporations will flow through to shareholders based on ownership interest or corporate bylaws, with shareholders claiming credits on their respective individual, fiduciary, or corporate returns