Louisiana — Corporate Income / Franchise Tax

Louisiana currently imposes only a corporate income tax on corporations doing business in the state. The state previously operated a dual tax structure—imposing both a corporate income tax on Louisiana taxable income and a franchise tax on taxable capital—but the franchise tax was repealed effective for taxable periods beginning on or after January 1, 2026.

Current structure: income tax only

As of January 1, 2026, Louisiana levies a flat 5.5% corporate income tax on the Louisiana taxable income of every C corporation (and other entities taxed as corporations for federal income tax purposes) that derives income from Louisiana sources or does business in the state. The corporate income tax is Louisiana's sole corporate-level tax on doing business; no separate franchise, capital stock, or net worth tax applies to taxable periods beginning on or after January 1, 2026.

Historical dual structure (through 2025)

For taxable periods beginning before January 1, 2026, Louisiana imposed both:

1. Corporate income tax on Louisiana taxable income (at graduated rates of 3.5% to 7.5% through 2024, then a flat 5.5% rate beginning January 1, 2025); and

1. Franchise tax on taxable capital (capital stock, surplus, undivided profits, and borrowed capital employed in Louisiana), imposed at $2.75 per $1,000 of taxable capital in excess of $300,000 for taxable periods beginning on or after January 1, 2023.

The franchise tax was levied on domestic corporations for the right to exist as a corporate entity under Louisiana law and on both domestic and foreign corporations for enjoying corporate privileges in Louisiana. A corporation was subject to franchise tax if it qualified to do business in Louisiana, exercised its charter in the state, or owned or used any capital, plant, or property in Louisiana, whether directly or indirectly through a partnership or joint venture.

Repeal legislation

Acts 2024, 3rd Ex. Sess., No. 6 (H.B. 3), signed by Governor Jeff Landry on December 4, 2024, repealed Louisiana Revised Statutes Title 47, Chapter 2 (Corporation Franchise Tax), effective for taxable periods beginning on or after January 1, 2026. Calendar-year corporations paid franchise tax for the final time on their 2025 returns (covering the period January 1, 2025 through December 31, 2025, with a May 15, 2026 filing deadline). Fiscal-year corporations with taxable periods beginning before January 1, 2026 and ending in 2026 paid franchise tax for that final pre-repeal period.

The repeal was part of comprehensive tax reform legislation enacted during the November 2024 Third Extraordinary Session that also flattened the corporate income tax to 5.5% (effective January 1, 2025), flattened the individual income tax to 3%, and expanded the sales tax base to include digital products and services.

Source: Acts 2024, 3rd Ex. Sess., No. 6 (H.B. 3), repealing La. R.S. 47:601 et seq., Louisiana Department of Revenue FAQ – Corporation Franchise Tax Repeal, La. R.S. 47:287.12 (corporate income tax rate)

Louisiana imposes a flat 5.5% corporate income tax rate on Louisiana taxable income for taxable periods beginning on or after January 1, 2025. This rate replaced the prior graduated rate structure, which had three brackets ranging from 3.5% to 7.5%. The flat rate applies to C corporations and other entities taxed as corporations for federal income tax purposes.

Source: La. R.S. 47:287.12, as amended by Act No. 5 (H.B. 2), 2024 Third Extraordinary Session, Louisiana Department of Revenue FAQ

Louisiana repealed its corporation franchise tax effective for taxable periods beginning on or after January 1, 2026. Prior to repeal, the franchise tax was imposed annually on domestic and foreign corporations doing business in Louisiana at graduated rates on taxable capital (capital stock, surplus, undivided profits, and borrowed capital employed in Louisiana). The repeal was enacted as part of comprehensive tax reform legislation signed in December 2024.

Source: Acts 2024, 3rd Ex. Sess., No. 6 (H.B. 3), La. R.S. 47:601, repealed eff. Jan. 1, 2026

Filing Requirement for Foreign Corporations — Effective for Tax Periods Beginning on or after January 1, 2026

Foreign corporations (organized outside Louisiana) are required to file Form CIT-620 (formerly CIFT-620) with the Louisiana Department of Revenue for every taxable year they derive income from Louisiana sources. This filing requirement applies regardless of whether a net tax liability is due after apportionment, deductions, or credits. The sole filing trigger for foreign corporations is the presence of Louisiana-source income; the filing requirement is not tied to qualification to do business or property ownership alone.

Franchise Tax Repeal and Impact on Filing Acts 2024, 3rd Ex. Sess., No. 6 (H.B. 3), repealed Louisiana’s corporation franchise tax effective for taxable periods beginning on or after January 1, 2026. As of that date, foreign corporations are no longer subject to franchise tax or its broader filing triggers (such as mere qualification, property ownership, or enjoying Louisiana corporate privileges). The only remaining corporate-level filing requirement is for those with Louisiana-source income, for income tax purposes. For tax years prior to 2026, Form CIFT-620 covered both income and franchise taxes. For 2026 and forward, only income tax applies; franchise tax no longer triggers any filing or payment obligation.

Electronic Filing Mandate Corporations with total assets of $500,000 or more must file electronically using the current designated return (CIT-620), as required by La. Admin. Code 61:III.1503 and the published instructions. This threshold applies to all corporations, including foreign corporations, for both 2025 (final year of franchise tax) and 2026 onward (income tax only for foreign filers).

Summary of Material Change Effective for periods beginning January 1, 2026, the repeal of the franchise tax means that foreign corporations are no longer required to file solely because they qualify to do business, own property, or otherwise meet franchise tax nexus criteria. The post-repeal filing obligation is limited to corporations actually earning Louisiana-source income.

Source: Louisiana Department of Revenue FAQ – Filing Requirement for Foreign Corporations, Acts 2024, 3rd Ex. Sess., No. 6 (H.B. 3)

Louisiana multistate corporations engaged in manufacturing, merchandising, or other business not subject to special industry formulas use a three-factor apportionment formula consisting of the equally weighted arithmetic average of property, payroll, and sales ratios. The property ratio compares Louisiana immovable and corporeal movable property to total property used in producing net apportionable income. The payroll ratio compares Louisiana salaries and wages to total compensation. The sales ratio compares net sales made in the regular course of business and other gross apportionable income attributable to Louisiana to the total. Service enterprises where property is not a substantial income-producing factor use a two-factor formula averaging only payroll and gross apportionable income ratios.

Source: La. R.S. 47:287.95(F)(1) and (D)

Louisiana determines corporate income tax nexus under a facts-and-circumstances "doing business" standard rather than bright-line economic thresholds. All corporations and entities taxed as corporations for federal income tax purposes that derive income from Louisiana sources must file Form CIFT-620, regardless of whether any tax is ultimately owed. This filing requirement applies to both domestic corporations (organized under Louisiana law) and foreign corporations (organized under the laws of other states).

No statutory factor-presence thresholds

Unlike many states that have adopted economic nexus standards with specific dollar thresholds for property, payroll, or sales, Louisiana has not enacted factor-presence nexus legislation. House Bill 518, introduced in the 2023 Regular Session, proposed establishing bright-line thresholds ($50,000 of property, $50,000 of payroll, $500,000 of sales, or 25% of total activity in Louisiana), but the bill died in committee and never became law. Louisiana's nexus standards remain grounded in jurisprudence and the constitutional "doing business" test rather than statutory thresholds.

Physical presence activities

Physical presence in Louisiana creates nexus at any income level. Activities that establish nexus include maintaining an office, warehouse, or other real property in the state; employing personnel who work or solicit business in Louisiana; storing inventory in Louisiana (including through third-party fulfillment centers); or exercising corporate charter or management functions within the state. Even a single employee performing services in Louisiana may create sufficient nexus to require filing.

Public Law 86-272 protection

Federal Public Law 86-272 may protect out-of-state corporations from Louisiana income tax if their only activity in Louisiana is the solicitation of orders for tangible personal property, the orders are approved outside Louisiana, and the goods are shipped from outside Louisiana. This federal protection applies only to income tax and only to sales of tangible personal property—it does not cover sales of services, digital products, intangibles, or real property. Importantly, P.L. 86-272 did not protect corporations from Louisiana's franchise tax prior to the franchise tax repeal effective January 1, 2026; a corporation could have franchise tax nexus even when protected from income tax.

Economic presence without physical nexus

Louisiana courts and administrative authorities may assert nexus based on economic presence—significant revenue derived from Louisiana customers, licensing intangible property for use in Louisiana, or systematic exploitation of the Louisiana market—even when the taxpayer lacks physical presence. Louisiana has not officially adopted the Multistate Tax Commission's factor-presence nexus model, but the state's "doing business" jurisprudence permits nexus findings based on purposeful economic activity directed at Louisiana. The determination is inherently fact-specific, turning on the frequency, quantity, and systematic nature of the taxpayer's contacts with Louisiana.

Practical application

Because Louisiana provides no safe-harbor thresholds, corporations must evaluate nexus based on the totality of their Louisiana activities. Any corporation with employees, property, or regular business operations in Louisiana should presume nexus exists. Corporations relying solely on P.L. 86-272 protection should confirm that their activities are limited strictly to solicitation of orders for tangible personal property and that no employees perform non-protected activities such as installation, training, or post-sale service in Louisiana.

Source: Louisiana Department of Revenue FAQ – Filing Requirement for Foreign Corporations, Louisiana Department of Revenue – Corporation Income & Franchise Taxes

Louisiana does not require or permit combined reporting for affiliated corporate groups. Each corporation engaged in business in Louisiana must file a separate Louisiana corporate income tax return (Form CIT-620), regardless of whether the corporation files a federal consolidated return with affiliated entities.

Separate company filing with formulary apportionment

Louisiana's default methodology requires each corporation to compute its own Louisiana taxable income using formulary apportionment under La. R.S. 47:287.95. A multistate corporation apportions its net income to Louisiana using a three-factor formula (property, payroll, and sales) applied to that corporation's own income—not the combined income of an affiliated group. Each member of an affiliated group files its own return reporting its separately computed Louisiana apportionable income, even when those corporations are part of a federal consolidated return.

When a corporation is included in a federal consolidated return, the Louisiana return instructions require the corporation to compute its Louisiana taxable income as if it had filed a separate federal return. The 2025 Form CIT-620 instructions state: "If the corporation is included with affiliates in a consolidated federal income tax return, or is not a Subchapter C corporation for federal income tax purposes, enter the net income that would have been reported on the federal return if the corporation had been required to file an income tax return with the Internal Revenue Service on a separate Subchapter C corporation basis."

Optional separate accounting method

As an alternative to formulary apportionment, La. R.S. 47:287.94(E)–(F) permits a taxpayer to apply to the Louisiana Secretary of Revenue for permission to use the separate accounting method to compute Louisiana-source income. Separate accounting is not the same as combined reporting; it is a transactional method that traces specific income and expenses to Louisiana rather than using apportionment factors. The taxpayer bears the burden of demonstrating that formulary apportionment produces a "manifestly unfair result" and that separate accounting would more equitably determine Louisiana-source income. Conversely, the Secretary may require a taxpayer to switch from apportionment to separate accounting when apportionment produces a manifestly unfair result.

Secretary's allocation authority under La. R.S. 47:287.480

La. R.S. 47:287.480(2) grants the Louisiana Department of Revenue authority to "allocate income and deductions among taxpayers" when necessary to prevent tax evasion or clearly reflect income. This provision authorizes the Department to adjust transactions between related entities—for example, by reallocating intercompany royalties, management fees, or interest payments—but it does not authorize the Department to require combined reporting or to ignore separate corporate existence. The statute is a related-party adjustment mechanism analogous to IRC § 482, not a combined reporting mandate. Courts and practitioners have debated whether La. R.S. 47:287.480 permits the Department to compel combined or consolidated reporting; the statutory text itself does not expressly authorize combined returns, and the references in the statute to "separate accounting method as set forth in R.S. 47:287.94" confirm that separate company filing remains the norm.

No ownership threshold or water's-edge election because combined reporting does not exist

Because Louisiana does not have a combined reporting regime, there is no statutory ownership threshold for including entities in a combined group, and there is no water's-edge versus worldwide election. These concepts exist only in states that have adopted combined reporting (such as California). In Louisiana, each corporation files separately based on its own income and its own apportionment factors, and intercompany transactions are respected unless the Department invokes its adjustment authority under La. R.S. 47:287.480.

Legislative consideration of combined reporting

Louisiana has considered but never enacted combined reporting. The Louisiana Department of Revenue and academic commentators analyzed combined reporting proposals in 2001 and 2018, discussing potential unitary business definitions, water's-edge elections, and transition issues, but no combined reporting statute was enacted. Louisiana continues to operate on a separate-company-filing basis with formulary apportionment (or optional separate accounting) as the methods for determining Louisiana-source income.

Source: La. R.S. 47:287.94 (Apportionment and separate accounting), La. R.S. 47:287.95 (Apportionment formula), La. R.S. 47:287.480 (Special adjustments by the secretary), Form CIT-620 Instructions (2025), p. 13

Louisiana corporate income tax remains grounded in federal taxable income as its starting point, subject to a detailed series of state-specific modifications.

1. Federal taxable income as the base Under La. R.S. 47:287.65, the starting point for corporate income tax is the federal taxable income computed for the same federal accounting period and method. Corporations filing as part of a federal consolidated group must determine Louisiana net income as if they filed a separate federal return (per Form CIT-620 instructions).

2. Modifications to federal gross income and deductions State-specific modifications are mandated by statute:

• Gross income modifications: La. R.S. 47:287.71 requires corporations to add or subtract specific income items, including Louisiana adjustments or exclusions carried forward/excluded under other provisions. Notable subtractions include:
• $20,000 deduction for all corporate taxpayers (La. R.S. 47:287.71(B)(9)), effective for tax years beginning Jan. 1, 2025 (enacted by Acts 2024, 3rd Ex. Sess., No. 5).
• Disaster/emergency-related exclusion for nonresident businesses (La. R.S. 47:287.71(B)(8)).
• Exclusion for certain interest/dividends and Subpart F income.
• Other subtractions and add-backs as listed in statute.

• Deductions modifications: La. R.S. 47:287.73 modifies deductions allowed for federal purposes with deletions and additions specified in statute.
• Bonus depreciation and amortization election: For tax years starting Jan. 1, 2025, corporations may claim a deduction for bonus depreciation or IRC § 197 amortization not taken for federal purposes, as newly permitted by La. R.S. 47:287.744 and Act No. 5 (2024 Third Extra. Sess.).
• Other special provisions for depletion, intangible drilling costs, etc.
• For tax years before 2025, a deduction for certain IRC § 280C disallowed expenses was allowed, but this was repealed for years after 2024.

3. Louisiana-specific deductions

• Federal income tax deduction: La. R.S. 47:287.85 allows deduction of federal income tax attributable to Louisiana income (unusual among states). Allocation/apportionment methods are set out in statute and regulatory guidance (LAC 61:I.1123).
• Net operating loss (NOL): La. R.S. 47:287.86 permits Louisiana NOL carryforwards (computed separately from federal NOLs), with limitations as to amount and no carrybacks for losses arising after 2000.

4. Result: Louisiana taxable income

• For single-state corporations, Louisiana taxable income equals net income after all adjustments, deductions, FIT and NOL.
• For multistate corporations, apportionment per La. R.S. 47:287.95 determines the Louisiana share to which the tax rate applies.

Recent legislative changes

• The addition of the bonus depreciation/amortization deduction (La. R.S. 47:287.744; Act No. 5, 2024) applies for tax years beginning 2025. Former provisions for certain add-backs (e.g., IRC § 280C) expire for tax years after 2024.

Source: La. R.S. 47:287.65, La. R.S. 47:287.69, La. R.S. 47:287.71, La. R.S. 47:287.73, La. R.S. 47:287.85, La. R.S. 47:287.86, La. R.S. 47:287.744, Acts 2024, 3rd Ex. Sess., No. 5 (H.B. 2), Form CIT-620 Instructions (2025), p. 13

Louisiana corporate income tax returns are due on or before May 15 for calendar-year taxpayers, or on or before the fifteenth day of the fifth month following the close of the fiscal year for fiscal-year taxpayers. If the due date falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.

Automatic extension: six months or federal extended due date, whichever is later

For taxable periods beginning on or after January 1, 2022, Louisiana grants an automatic extension of time to file the corporate income tax return, provided the taxpayer timely requested an extension from the Internal Revenue Service to file the federal return for the same period. The extension period is six months from the original Louisiana due date, or the extended due date of the federal income tax return, whichever is later. No separate Louisiana extension form is required; the taxpayer must mark the box on Form CIT-620 (Louisiana Corporation Income Tax Return) indicating that a federal extension was timely requested for the same taxable period.

La. R.S. 47:287.614(D)(4) provides: "For taxable periods beginning on or after January 1, 2022, the secretary shall grant an extension of the time to file a Louisiana income tax return provided that the taxpayer timely requested an extension from the Internal Revenue Service to file the federal return for the same period." The extension is conditioned upon the filing of the required return within the extension period; if the return is not filed within the extension period, there is no extension and any delinquent filing penalty is computed from the original due date.

Extension for filing only — payment due on original due date

The extension is for filing only and does not extend the time to pay the tax due. La. R.S. 47:287.614(D)(1) authorizes the secretary to grant "a reasonable extension of time for filing returns," not an extension of time to pay. Louisiana Administrative Code 61:III.2503(C) confirms: "A filing extension granted by the secretary only allows for an extension of time to file the tax return. The extension does not allow an extension of time to pay the tax due. To avoid interest and penalty assessments, income and franchise taxes due must be prepaid on or before the original due date."

Payments received after the original return due date are subject to interest and late payment penalty, even when the taxpayer has a valid extension to file. The Louisiana Department of Revenue states: "This is only an extension to file and NOT an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late payment penalty."

Federal extension requirement and documentation

To obtain the Louisiana automatic extension, the taxpayer must have timely requested a federal extension for the same taxable period. The regulations at La. Admin. Code tit. 61, § III-2503(B) provide that for taxable periods beginning on or after January 1, 2022, the secretary grants an automatic extension for the same period as the federal extension, or six months, whichever is later, with no state extension request required. However, the taxpayer must mark the extension box on the Louisiana return and should retain documentation of the federal extension (such as IRS Form 7004 or evidence of automatic extension).

If the IRS denies a federal extension request, the Louisiana extension becomes null and void, and delinquent filing penalties are assessed from the original due date. If a taxpayer requests reconsideration of a denied federal extension and it is subsequently approved, the taxpayer must attach all required IRS documents to the Louisiana return along with evidence of the approved reconsideration.

Estimated tax payment requirement

Louisiana corporations that reasonably expect their Louisiana income tax liability for the year to be $1,000 or more are required to make quarterly estimated income tax payments under La. R.S. 47:287.654. The extension to file the return does not eliminate the requirement to pay estimated taxes during the year or to remit any remaining balance due by the original return due date to avoid interest and penalties.

Source: La. R.S. 47:287.614, La. Admin. Code tit. 61, § III-2503.pdf), Louisiana Department of Revenue FAQ – Corporation Return Extension Deadlines

Louisiana allows C-corporations to claim a variety of credits against state corporate income tax, governed by a patchwork of statutes that spell out eligibility, credit mechanics, ordering, carryforward/refund rules, and flow-through for S corporations and certain cooperatives.

1. Inventory and Natural Gas Ad Valorem Tax Credit (R.S. 47:6006)

• C-corporations may claim a credit for Louisiana ad valorem (property) taxes paid to political subdivisions on inventory and natural gas used in storage services.
• For payments made on or after July 1, 2026, C-corporations, estates, and trusts cannot earn the credit; only certain cooperatives and S corporations (which pass credits through to shareholders) may claim it.
• Unused credits earned before a taxpayer loses eligibility may be carried forward ten years beyond the original carryforward period (except credits expiring before January 1, 2025).
• For taxable periods beginning on or after January 1, 2025, credits exceeding tax liability are nonrefundable and can only offset future tax.

Source: La. R.S. 47:6006

2. Administrative Ordering and Mechanics (R.S. 47:1675)

• Unless the statute granting a credit says otherwise, credits are nonrefundable, nontransferable, and cannot be carried back (with limited carryforward exceptions).
• If an overall program cap applies, allocation is first-come, first-served—with pro rata allocations for same-day claims in excess of the cap.
• Statutory ordering of credits: (1) current-year nonrefundable without carryforward, (2) refundable except R.S. 47:6006, (3) carryforward credits (shortest period first), (4) current-year nonrefundable with carryforward (shortest first), (5) transferable nonrefundable (at taxpayer's election), (6) refundable under R.S. 47:6006, (7) estimated payments and withholding.
• Credits are generally claimed in the year earned unless the specific statute provides otherwise. Schedules must show the portion flowed to each partner/shareholder and any recapture.

Source: La. R.S. 47:1675

3. S Corporation Flow-Through (R.S. 47:287.732)

• For taxable periods beginning January 1, 2026, S corporations must pass credits through to shareholders per R.S. 47:1675(F), where each shareholder claims the credit proportionally.

Source: La. R.S. 47:287.732

Understanding these credit provisions is essential for tax planning, compliance, and correct computation of net liability—especially as eligibility and carryforward provisions shift for several key credits over 2025–2026.

Source: Louisiana Revised Statutes § 47:6006, § 47:1675, § 47:287.732

Louisiana imposes statutory penalties and interest for late filing and late payment of corporate income tax. The main penalty is 5% of the unpaid tax for each 30-day period (or fraction thereof) that the filing or payment is late, not to exceed 25% in the aggregate. Interest accrues from the statutory payment due date until the tax is paid in full.

Interest—La. R.S. 47:1601 & Department Announcement: Interest is imposed on all unpaid Louisiana corporate income taxes from the date due, regardless of whether a filing extension was obtained. The annual rate is set as 3 percentage points above the judicial interest rate provided by La. R.S. 9:3500(B)(1). For tax periods beginning January 1, 2026, the Louisiana Department of Revenue set the interest rate at 10.50% per annum (7.5% judicial rate plus 3%), as announced in Revenue Information Bulletin No. 26-001. Interest rates are subject to annual adjustment. The cited statutes do not contain a monthly cap or additional limitations beyond this mechanism. Abatement of interest is permitted only in limited circumstances as outlined in law or Departmental error.

Penalty—La. R.S. 47:1602: If a corporation fails to file a required return or pay the full amount of Louisiana corporate income tax by the due date, a penalty of 5% of the tax due is assessed for the first 30 days (or fraction thereof) late. An additional 5% is imposed for each further 30-day period (or fraction), capped at 25% of the unpaid amount. The penalty applies separately to late filing and late payment; however, the combined penalties do not exceed 25%. Penalties are assessed automatically unless the taxpayer demonstrates reasonable cause, and the Secretary has authority under La. R.S. 47:1603 to waive penalties for documented reasonable cause or voluntary disclosure agreements.

Criminal Penalty—La. R.S. 47:287.621: For willful failure to file a Louisiana corporate income tax return, an individual responsible may be fined up to $500 or imprisoned up to six months, in addition to civil penalties, unless the delinquent return is filed within ninety days of the final due date (including extensions) as specified in the statute.

There is no general hardship or inadvertent abatement for penalties and interest; relief is at the Department's discretion only as provided by statute or regulation.

Source: La. R.S. 47:1601, RIB No. 26-001 (2026 interest rate announcement), La. R.S. 47:1602, La. R.S. 47:287.621

Louisiana treats both domestic (Louisiana-chartered) and foreign corporations with no active business operations—but with state charter, assets, or income—as subject to annual filing requirements under its corporate income tax regime, regardless of whether business activity occurred in the state during the year.

Domestic dormant corporations: A Louisiana-chartered corporation that ceases all business activity and owns no property or assets in Louisiana is still required to file a corporation income tax return (Form CIT-620, or through 2025, CIFT-620) each tax year until it is legally dissolved or withdrawn by formal certificate from the Secretary of State. The Louisiana Department of Revenue FAQ states: "A Louisiana corporation that is not actively engaged in business, or receives no income, must still file a return until the charter has been legally dissolved."

Foreign investment/holding corporations: Foreign corporations organized outside Louisiana but owning property or deriving any income from Louisiana sources must file Form CIT-620. This includes holding companies and investment-only entities if they earn Louisiana-source income (including dividends or interest from Louisiana partnerships, LLCs, or real property). The same FAQ confirms: "All corporations deriving any income from Louisiana sources are required to file a return whether or not any tax is due."

Franchise tax context (through 2025): Until its repeal effective for taxable periods beginning January 1, 2026, the Louisiana corporation franchise tax (formerly La. R.S. 47:601 et seq.) created a broader filing trigger: the mere existence, qualification, or ownership of capital, plant, or property in the state—as well as continued legal charter—required filing and payment even for dormant or holding entities. This included domestic and foreign corporations still registered or holding Louisiana assets, regardless of business operations.

Income tax filing after franchise tax repeal: For tax years beginning January 1, 2026 and after, domestic corporations remain subject to corporate income tax filing while their charter remains active, even if dormant. Foreign investment and holding companies remain subject to filing if they have Louisiana-source income or sufficient presence for Louisiana nexus; owning only intangibles or minority financial interests may, in some cases, trigger filing if those interests generate Louisiana-source income.

Takeaway:

• A Louisiana corporation is required to file every year until its legal existence ends by dissolution.
• Foreign corporations with any Louisiana-source income—including as investment/holding entities—must file for any year in which such income exists.
• This obligation exists regardless of whether tax is ultimately due.

Source: Louisiana Department of Revenue FAQ—Income and Franchise Tax Filing Requirement for Dormant Corporations, Louisiana Department of Revenue Revenue Ruling 02-001