§293.2. Regulation requirement for capital gains deduction

            A. The secretary of the Department of Revenue shall promulgate regulations providing for the individual income tax deduction for income from net capital gains arising from the sale or exchange of an equity interest in or substantially all of the assets of a nonpublicly traded corporation, partnership, limited liability company, or other business organization commercially domiciled in Louisiana under R.S. 47:293(9)(a)(xvii) and (10).

            B. The purpose of the regulations shall be to reduce the existing administrative requirements for eligible taxpayers.

            C. Such regulations shall, at a minimum, provide for the following:

            (1) Documentation requirements applicable to taxpayers claiming the deduction.

            (2) A de minimis exception to documentation requirements for small transactions eligible for the deduction.

            (3) Restrictions on eligibility for transactions if the majority of physical assets are located outside of Louisiana.

            (4) Restrictions on eligibility for transactions between related parties.

            Acts 2023, No. 242, §1.