Bill > SB65

This bill modifies Louisiana's tax credit for local inventory taxes, introducing several key changes to how different types of business entities can claim the credit. Starting from January 1, 2025, the bill prohibits estates and trusts from claiming the inventory tax credit, while allowing cooperatives to earn the credit if they can claim a federal income tax deduction for patronage dividends. For S corporations, the credit can only be claimed in proportion to amounts that flow through to shareholders. The bill extends the carry-forward period for unused credits from five to ten years for certain corporations, and specifies that credits exceeding tax liability for C-corporations cannot be refunded but can be used against future tax liability. The legislation also clarifies that S corporations can elect to flow through the credit to shareholders, and maintains the existing ten-year carry-forward period for credits. These changes aim to restructure how inventory tax credits are applied across different business structures, potentially impacting tax strategies for manufacturers, distributors, retailers, and other businesses with inventory holdings in Louisiana.

Budget and Finance

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=SB65&sbi=y