Bill > HB230

This bill establishes an income tax credit for motor vehicle manufacturers and their suppliers in Louisiana, designed to incentivize investment in manufacturing equipment. The credit allows qualifying taxpayers (those in motor vehicle manufacturing or supplying motor vehicle manufacturing goods) to claim tax credits based on the value and depreciation period of their manufacturing equipment, with credit percentages ranging from 0.5% to 2.5% depending on the property's recovery period as defined by the Internal Revenue Code. Taxpayers can claim up to $10 million in credits per year and may carry forward unused credits for up to ten years. To be eligible, the equipment must be used in manufacturing, be tangible property subject to specific IRS sections, and either acquired or constructed within Louisiana. The bill includes provisions for recapturing credits if equipment is disposed of early or moved out of state, and prohibits taxpayers from claiming other state tax credits for the same activities. Notably, the tax credits are only available for taxable years beginning on or before December 31, 2031, and will become effective on January 1, 2026, with different claiming procedures for corporations, individuals, estates, and trusts.

Budget and Finance

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB230&sbi=y