§ 47:297.18 — Tax exemption; digital nomads; requirements; limitations

Louisiana § 47:297.18

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§297.18. Tax exemption; digital nomads; requirements; limitations
A. It is the intent of the Louisiana Legislature that the digital nomad tax exemption
provided for in this Section be used primarily as an inducement for individuals to locate in
Louisiana who will make significant contributions to the development of the economy of the
state of Louisiana.
B.(1) There shall be an exemption from individual income taxes imposed by this
Chapter of fifty percent of the gross wages of each taxpayer who qualifies as a digital nomad
not to exceed one hundred fifty thousand dollars.
(2) The exemption shall apply for a period of up to two taxable years during taxable
years 2022, 2023, 2024, and 2025.
(3) The exemption shall apply only to gross wages received from the services
performed as a digital nomad.
(4) The exemption shall apply only to income that is earned from remote work.
(5) For purposes of this Section, the term "digital nomad" shall mean an individual
who:
(a) Establishes residency in Louisiana after December 31, 2021.
(b) Is considered a covered person with major medical health insurance.
(c) Works remotely full-time for a nonresident business as provided for by rule by
the secretary of the Department of Revenue.
(d) Is required to file a Louisiana resident or part-year resident individual income tax
return for the taxable year in which the exemption is claimed.
(e) Has not established residency or domicile in Louisiana for any of the prior three
years immediately preceding the establishment of residency or domicile after December 31,
2021.
(f) Has not been required to file a Louisiana resident or part-year resident individual
income tax return for any of the prior three years.
(g) Performs the majority of employment duties in this state either remotely or at a
coworking space.
C. For the purposes of this Section:
(1) "Covered person" means a policyholder, subscriber, enrollee, or other individual
enrolled in or insured by a health insurance issuer for major medical health insurance
coverage.
(2) "Major medical health insurance coverage" means any hospital, health, or
medical expense insurance policy, hospital or medical service contract, health and accident
insurance policy, or any other contract of this type providing comprehensive major medical
benefits, including a group insurance plan, or any policy of family group, blanket, or
association health and accident insurance, a self-insurance plan, an employee welfare benefit
plan, or a health maintenance organization subscriber agreement. The term "major medical
health insurance" does not include publicly funded programs, including federal governmental
benefit plans, that are wholly or partially funded by this state.
D. The taxpayer claiming the digital nomad exemption shall maintain all records
necessary to verify that they meet the requirements of this Section.
E. The Department of Revenue shall limit the number of taxpayers eligible for the
digital nomad exemption to five hundred individuals for the life of the program.
F. The Department of Revenue shall provide an annual written evaluation of the
individual income tax exemption for digital nomads and its effectiveness in inducing
individuals to locate in Louisiana and present its findings to the Senate Committee on
Revenue and Fiscal Affairs and the House Committee on Ways and Means by January first
of each year beginning in 2024.
G. Recovery by Department of Revenue.
(1) The tax exemption previously granted to a taxpayer under this Section, but later
disallowed, may be recovered by the secretary of the Department of Revenue through any
collection remedy authorized by R.S. 47:1561 and initiated within three years from
December thirty-first of the year in which the exemption was claimed.
(2) The only interest that may be assessed and collected on the recovered exemption
is interest at a rate of three percentage points above the rate provided in R.S. 9:3500(B)(1),
which shall be computed from the original due date of the return on which the exemption
was claimed.
(3) The provisions of this Subsection are in addition to and shall not limit the
authority of the secretary of the Department of Revenue to assess or to collect under any
other provision of law.
H. The Department of Revenue may promulgate rules in accordance with the
Administrative Procedure Act to carry out the intent and purposes of this Section.
I. There shall be no exemption pursuant to this Section for any wages earned by a
digital nomad after December 31, 2025.

Legislative History

Acts 2021, No. 387, §1, eff. June 16, 2021.