HLS 15RS-1226 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 441
BY REPRESENTATIVE LEGER
TAX CREDITS: Provides for the carryforward rather than the refund of the tax credit for
ad valorem taxes paid on inventory
1 AN ACT
2To amend and reenact R.S. 47:6006(A) and (B), relative to income and corporation franchise
3 tax credits; to provide with respect to the tax credit for ad valorem taxes paid on
4 inventory; to provide with respect to authorization for issuance of refunds for tax
5 credits which exceed taxpayer tax liability; to provide for certain limitations; to
6 provide for effectiveness; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6006(A) and (B) are hereby amended and reenacted to read as
9follows:
10 ยง6006. Tax credits for local inventory taxes paid
11 A.(1) There shall be allowed a credit against any Louisiana income or
12 corporation franchise tax for ad valorem taxes paid to political subdivisions on
13 inventory held by manufacturers, distributors, and retailers and.
14 (2) There shall be allowed a credit against Louisiana income or corporation
15 franchise tax on natural gas held, used, or consumed in providing natural gas storage
16 services or operating natural gas storage facilities.
17 B. Credit for taxes paid by corporations shall be applied to state corporate
18 income and corporation franchise taxes. Credit for taxes paid by unincorporated
19 persons shall be applied to state personal income taxes. If the amount of the credit
20 authorized pursuant to Paragraph (1) of Subsection A exceeds the amount of tax
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1226 ORIGINAL
HB NO. 441
1 liability for the tax year, then any unused credit may be carried forward as a credit
2 against subsequent Louisiana income or corporation franchise tax liability for a
3 period not to exceed five years. The taxpayer shall be entitled to a refund for any
4 allowable credit authorized pursuant to Paragraph (2) of Subsection A which exceeds
5 the aggregate tax liability of the taxpayer for the taxes imposed by Chapter 1 and
6 Chapter 5 of Subtitle II of this Title. The secretary shall make such refund to the
7 taxpayer in the amount to which he is entitled from the current collections of the
8 taxes collected pursuant to Chapter 1 and Chapter 5 of such Subtitle II.
9 * * *
10 Section 2. The provisions of this Act shall be applicable to tax years beginning on
11or after January 1, 2015.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 441 Original 2015 Regular Session Leger
Abstract: Changes the tax credit for ad valorem taxes paid on inventory from a refundable
credit to a credit in which amounts of the credit above the tax liability may be carried
forward and applied against subsequent tax liability for up to five years.
Present law provides for an income or corporation franchise tax credit for ad valorem taxes
paid to political subdivisions on inventory held by manufacturers, distributors, and retailers
and on natural gas held or consumed in providing natural gas storage services or operating
natural gas storage facilities. The amount of the credit shall be equal to 100% of the taxes
paid to political subdivisions.
Present law provides that the taxpayer is entitled to a refund for any allowable credit which
exceeds the aggregate tax liability of the taxpayer. Further requires the Dept. of Revenue
to refund the excess tax credit amount to the taxpayer from current tax collections.
Proposed law changes the tax credit as it relates to ad valorem taxes paid for inventory held
by manufacturers, distributors, and retailers from a refundable credit to one in which credit
amounts which exceed taxpayer liability may be carried forward against subsequent income
or corporation franchise tax liability for up to five years.
Applicable to tax years beginning on or after Jan. 1, 2015.
(Amends R.S. 47:6006(A) and (B))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.