BATON ROUGE — Legislators on Friday adjourned their third special session of the year, this one focused on changes to the state's tax policy. 

Six bills were passed that will make changes to various aspects of the state's tax policy, including the reduction of corporate tax rates, the elimination of a corporate franchise tax and lowering income tax for residents.

Bills also doubling the standard tax deductions for seniors, making permanent a $2,000 teacher pay raise, advancing a constitutional amendment giving lawmakers more flexibility to reduce taxes in the future and modernizing the tax code to include apps and streaming services also passed. 

One of the bills intended to eliminate a film production tax credit by 2025 was amended to keep the original phase-out date of 2031. Instead of eliminating the credits, the new bill adjusts the cap on the program from $150 million to $125 million, effective July 1, 2025.

“We appreciate Governor Landry’s pro-business vision, and we salute the business-minded leaders in the Louisiana legislature who recognized film in Louisiana is a $1 billion industry that employs thousands of Louisianans across our state,” Jason Waggenspack, president of Film Louisiana and a local filmmaker, said in a statement after the bill passed. “The initial plan to eliminate all but one incentive program could have savaged this lucrative Louisiana investment.”

The legislature passed the following bills:
- HB 2: Reduces tax rate for corporations from 7.5% to a flat rate of 5.5 % and phases out many credits, deductions and exemptions,
- HB 3: Eliminates the corporate franchise tax,
- HB 5: Provides a permanent $2,000 pay raise for teachers and a $1,000 increase for other employees using savings from debt payments to the Teacher’s Retirement System,
- HB 7: Rewrites certain portions of the budget and tax sections of the constitution and limits growth in future state spending,
- HB 8: Modernizes the state’s sales tax code by including apps, streaming services, software, digital books and music, and
- HB 10: Lowers personal income taxes to a flat rate of 3% and sets the state’s sales tax rate at 5.0% for 5 years, then reduces it to 4.75%.

“The package of bills we delivered to the Governor will undoubtedly stimulate economic growth and change the state’s overall trajectory. I’m proud of the hard work of the Senate and appreciate our lawmakers for taking the time to come back to Baton Rouge to stabilize our budget ahead of 2025," Senate President J. Cameron Henry said.

All six bills are expected to be signed by Gov. Jeff Landry, who called the special session of the legislation. The legislative session started on Nov. 6 and had until Monday to conclude. 

Landry thanked legislators for their work in implementing his tax policy, something he campaigned for governor on reforming.

Thanks to all the hardworking state senators for this historic vote! They just passed the largest income tax cut in over 30 years, gave teachers a PERMANENT pay raise, and tripled the deduction for our senior citizens. #lalege #lagov

— Governor Jeff Landry (@LAGovJeffLandry) November 22, 2024

The state will now consider adopting a constitutional amendment passed by the legislature addressing tax reform during a March 29 election. The amendment would rewrite significant portions of the budget and taxation sections of the state constitution that will further help the state lower personal and corporate income tax rates.

The amendment would also give local government the ability to opt out of collecting inventory taxes and provide the funding mechanism for permanent teacher pay raises.