The Louisiana Department of Revenue has finalized two sets of regulations published in the May 20, 2026 edition of the Louisiana Register that affect Louisiana’s pass-through entity tax election framework and employer state income tax withholding. The adopted rules amend Louisiana Administrative Code Title 61, Part I, at Sections 1001 and 1501, respectively, and reflect regulatory changes that the Department had signaled earlier this year through both a notice of intent and a Revenue Information Bulletin.
Pass-Through Entity Election: Streamlined Documentation Requirements
The final rules include an amendment to LAC 61:I.1001 governing the election available to S corporations and entities taxed as partnerships under Louisiana Revised Statute 47:287.732.2, which permits qualifying entities to pay Louisiana income tax at the entity level rather than passing the tax obligation through to individual owners. Under the prior regulation, each shareholder, partner, or member of an electing
