How to make the Louisiana PTET election.

Can your business elect?

S corporations and other entities taxed as partnerships for federal income tax purposes, including LLCs. A partnership that files a composite return under La. R.S. 47:201.1 cannot elect, and for periods beginning on or after January 1, 2026 an S corporation that files a composite return cannot elect for the same period.

Owners holding more than one-half of the ownership interest, based on capital account balances on the day of the election, must approve it, documented by a signed resolution or other written proof. The election then applies to the entity as a whole, and all owners exclude the income taxed at the entity level. Interest and dividend income remain taxable to the owners.

Rate: 3% flat. La. R.S. 47:287.732.2(B), as amended by Act 11 of the 2024 Third Extraordinary Session, taxes electing entities at the individual rate under R.S. 47:32, which is a flat 3% for tax periods beginning on or after January 1, 2025. The tax is computed on Schedule H-1 of Form CIT-620.

The entity's Louisiana taxable income, computed as if the entity were a C corporation under Louisiana corporation income tax rules (allocated and apportioned to Louisiana).

Available for 2026. Louisiana's pass-through entity tax election under La. R.S. 47:287.732.2 (Act 442 of 2019) is a continuing election with no sunset; Act 382 of 2025 made S corporations flow-through entities for periods beginning on or after January 1, 2026 but kept the election available. New to PTET? See how the election works.

Deadlines

These dates are for a calendar-year business. Pay at least two business days early, since state payment sites slow down on deadline days.

Electing, step by step

Deadline: For an election first effective for 2026, Form R-6980 may be filed any time during 2025 or 2026, or by April 15, 2027. The Secretary may accept a later election if reasonable circumstances exist.

Start with Form R-6980, Pass-Through Entity Tax Election (1/26), from the Louisiana Department of Revenue.

1. Skip these steps if the entity already elected for an earlier year: the election stays in effect until terminated.
2. Complete Form R-6980, Pass-Through Entity Tax Election: legal name and mailing address, then Line 1 (Effective Date for Election, January 1, 2026 for a calendar-year entity), Line 2 (FEIN), Line 3 (LDR Account Number), and Lines 4 to 12.
3. Gather the required documents: proof that owners holding more than one-half of the ownership interest (by capital accounts) approved the election, a list of all owners with addresses and tax ID numbers, the last three years of federal returns with K-1s, formation documents showing how tax items are allocated, and a list of unused Louisiana NOLs and credits.
4. Have an officer sign the form (and the paid preparer, if any). Applications without the required documents cannot be processed.
5. Email the form and documents to Section732.2election@la.gov by April 15, 2027 and wait for the Department's acceptance. LDR opens a corporation income tax account for the entity if it does not have one.

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Paying the tax, step by step

The electing entity follows the corporate estimated tax rules: installments are required when estimated tax is expected to be $1,000 or more, due April 15, June 15, September 15, and December 15, 2026 for a calendar-year entity, using the CIFT-620ES voucher at the 3% rate.

What you need

• Nothing to set up. LaTAP (Louisiana Taxpayer Access Point) takes payments without an account.
• The entity's LDR account number and FEIN.
• A LaTAP login for bank (ACH debit) payments.
• The installment amount figured at the 3% rate on the CIFT-620ES worksheet.
• The business bank account routing and account numbers, or a card.

Start at LaTAP (Louisiana Taxpayer Access Point), Louisiana's official site.

1. Log in to LaTAP, or use LaTAP's non-logged-in payment option (requires the entity's LDR account number).
2. Select the entity's corporation income tax account. The electing entity pays as a corporation, so estimates, extension payments, and the return balance all go to this account.
3. Choose the 2026 period and the type of payment (estimated, extension, or return payment), enter the amount, and pay by bank account. Card payments (with a processor fee) are also accepted without logging in; select the correct payment type.
4. To pay by mail, use the corporate estimated tax voucher (Form CIFT-620ES) or the extension voucher (Form CIFT-620EXT-V) and mail it with a check to the Department of Revenue, P.O. Box 91011, Baton Rouge, Louisiana 70821-9011. Do not mail a voucher for an electronic payment.

Filing the return: Form CIT-620 (Louisiana Corporation Income Tax Return) with Schedule H-1 and Line O marked, filed electronically, with Schedule K-1s, Form R-6981, and Form R-6982 attached. For calendar-year 2026 the return and payment are due May 17, 2027 (May 15 falls on a Saturday); a six-month extension is automatic if a federal extension was timely requested.

Claiming the credit

Owners exclude their share of the income taxed at the entity level. Resident individuals take the modification on Schedule E of Form IT-540, nonresidents and part-year residents on the NPR worksheet of Form IT-540B, and trusts and estates on Form IT-541. Interest and dividend income that remains taxable to owners is not excluded, and the entity reports it on Form R-6981.

Good to know

• The election is continuing rather than annual. After a termination takes effect, the entity and any successor cannot elect again for the next five taxable years.
• Louisiana credits and net operating losses earned while the election is in effect stay with the entity and cannot be used by owners, even after termination.
• Starting in 2026, an S corporation must choose between the PTE election and a composite return for its nonresident shareholders; it cannot do both for the same period.
• The current regulation requires owners to submit a pro forma federal Form 1040 or 1041 that excludes items already taxed at the entity level. A rule proposed in February 2026 would require it only on the Department's request and tie the exclusion to the amounts shown on Form R-6981.
• Paying your personal Louisiana estimates? See how to pay Louisiana estimated taxes.
• Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Louisiana Department of Revenue's own publications and La. R.S. 47:287.732.2; LAC 61:I.1001.

• Form R-6980 and instructions, Pass-Through Entity Tax Election (1/26)
• 2025 CIT-620 instructions (Schedule H-1 3% rate, election rules, due dates)
• 2025 CIT-620ES instructions (estimated tax, 3% rate for electing entities)
• LAC 61:I.1001, Election of Pass-Through Entities (current regulation)
• Revenue Information Bulletin 25-032 (Act 382 of 2025, S corporations)
• Act 450 (HB 428) of 2023 resume digest (termination and five-year bar)
• LDR FAQ, Can I pay through LaTAP? (corporation income tax)
• LDR, Income Tax Extension Payments (corporation payment options)
• LDR FAQ, Can I pay without creating a LaTAP account?

This guide is for general education and reflects rules as of October 2026. Tax law and agency websites change, and your situation may have details that change the answer. Please talk with your tax professional before acting on it.