Bill > HB186

This bill establishes a refundable tax credit for businesses in Louisiana that provide compensation to employees who are members of the Louisiana National Guard or military reserve components during certain military service periods. The credit covers two types of payments: compensation during inactive duty training (IDT) and "reservist differentials" (payments that make up the difference between an employee's civilian and military pay when called to active duty). The tax credit is capped at $5,000 per business or the total amount of such compensation paid, whichever is less, with a statewide annual limit of $5 million distributed on a first-come, first-served basis. If a business's credit exceeds its tax liability, the excess will be refunded. Businesses must maintain records to verify their eligibility, and the credit can be claimed by corporations, individuals, and other entities based on their tax structure. The credit is available for taxable years beginning on or after January 1, 2026, and will expire after December 31, 2031. The Louisiana Department of Revenue will develop specific rules for implementing the program and will manage the credit allocation process.

Budget and Finance

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB186&sbi=y