Frequently Asked Questions
Does Louisiana have any special tax treatment for the Great Flood of 2016?
Yes. Act 1 of the 2018 First Extraordinary Session of the Louisiana Legislature provided state specific relief to accompany the federal relief provided by Public Law 115-97, more commonly referred to as the Tax Cuts and Jobs Act (“TCJA”). See Revenue Information Bulletin No. 18-012 for more information.
In addition, LA. R.S. 47:293(9)(a)(i) provides for a deduction for residents to arrive at tax table income for “any gratuitous grant, loan, or other benefit directly or indirectly provided to a taxpayer by a hurricane recovery entity if such benefit was included in federal adjusted gross income.” La. R.S. 47:293(10) provides a similar income tax deduction for nonresident individuals. A hurricane recovery entity is defined by La. R.S. 47:293(5) as “…the Road Home Corporation as provided for in Chapter 3-E of Title 40 of the Louisiana Revised Statutes of 1950, the Louisiana Recovery Authority as provided for in Part V of Chapter 2 of Title 49 of the Louisiana Revised Statutes of 1950, the disaster recovery unit within the office of community development, division of administration, or the Louisiana Family Recovery Corps.”
Since the Office of Community Development, Disaster Recovery Unit, administers the Restore Louisiana Program, Restore Louisiana payments would qualify as a “hurricane recovery entity” under R.S. 47:293(5). Therefore, if the qualified disaster relief payments for losses was previously reimbursed by insurance or previously deducted in a prior tax year, the payment will be included in gross income but would be deducted from individual income tax. Refer to Revenue Ruling 08-001 for whether insurance settlement proceeds have similar treatment.