§1624. Interest on refunds

            A.(1)(a) Except as otherwise provided in Subparagraph (2)(a) of this Subsection, and notwithstanding any other provision of law to the contrary, on all refunds or credits, the secretary shall compute and allow as part of the refund or credit interest at the rate established for tax obligations in R.S. 47:1601(A)(2) from ninety days after the later of the due date of the return, the filing date of the return or claim for refund on which the overpayment is claimed, or the date the tax was paid.

            (b) An overpayment shall bear no interest if it is credited to the taxpayer's account. No interest on refunds or credits shall be allowed if the secretary proves by clear and convincing evidence that a person has deliberately overpaid a tax in order to derive the benefit of the interest allowed by this Section. Payments of interest authorized by this Section shall be made from funds derived from current collections of the tax to be refunded or credited.

            (c) No interest shall accrue on any overpayment that is based on a tax shelter, tax sham, tax evasion scheme, or any transaction which lacks a legitimate business purpose or otherwise fails the economic substance doctrine as determined by a final decision of a court of competent jurisdiction.

            (2) Repealed by Acts 2025, No. 498, §7, eff. July 1, 2025.

            B. As of the date a person files a petition for relief under the uniform bankruptcy laws of the United States as provided in 11 U.S.C. 101 et seq., no interest shall be allowed to accrue as a part of any overpayment that relates to a pre-petition tax period.

            C. The provisions of this Section shall govern the calculation of interest on all refunds or credits resulting from the collection of any tax or administration of any provision by or on behalf of the secretary of the Department of Revenue pursuant to any provision contained in Title 26, Title 47, Title 51, or any other provision contained in the Louisiana Revised Statutes of 1950. However, the provisions of this Section shall not govern for the purposes of calculating any interest on refunds granted pursuant to the International Fuel Tax Agreement.

            D. The secretary may offset any overpayments of estimated corporate income tax against the corporation's income tax or franchise tax for the purpose of determining the interest due under the provisions of R.S. 47:1601 and any interest payable pursuant to the provisions of this Section.

            E. No refund of franchise tax shall be paid by the secretary until any claim of offset filed by the office of unemployment insurance administration of the Louisiana Workforce Commission against the taxpayer under R.S. 23:1733 has been satisfied.

            F. Notwithstanding any provision of this Section, or any other provision of law to the contrary, the accrual of interest shall be suspended during any period of time that a delay in the issuance of a refund is attributable to the taxpayer's failure to provide information or documentation required by statute or regulation.

            Acts 1988, No. 46, §1, eff. June 17, 1988; Acts 2004, No. 900, §1, eff. Jan. 1, 2005; Acts 2016, 2nd Ex. Sess., No. 10, §1, eff. July 1, 2016; Acts 2020, No. 348, §1, eff. Jan. 1, 2021; Acts 2025, No. 498, §4, eff. July 4, 2025, §7, eff. July 1, 2025.

            NOTE: See Acts 2016, 2nd Ex. Sess., No. 10, §3, regarding applicability.