Frequently Asked Questions

Pursuant to IRC Section 139, qualified disaster relief payments are excluded from gross income.  The definition of qualified disaster relief payments includes amounts paid by a federal, state, or local government in connection with a qualified disaster.  The definition of qualified disaster includes a federally declared disaster.  The Great Floods of 2016 were declared to be a federally declared disaster on August 14, 2016 and therefore qualify under the definition of federally declared disaster.  Therefore, Restore Louisiana recovery grants are excluded from gross income. 

However, qualified disaster relief payments for losses previously reimbursed by insurance or previously deducted in a prior tax year will be included in gross income.

For individual income tax purposes, Louisiana conforms to the federal adjusted gross income calculation.   Pursuant to LA. R.S. 47:293(1), Louisiana adjusted gross income means the federal adjusted gross income that is reportable on the individual’s federal income tax return.  Therefore, if the qualified disaster relief payments are excluded from federal gross income, these funds will not be subject to Louisiana individual income tax.