HLS 15RS-1147 ENGROSSED
2015 Regular Session
HOUSE BILL NO. 532
BY REPRESENTATIVE STOKES
TAX CREDITS: Provides for the carryforward rather than the refund of a certain portion
of the tax credit for ad valorem taxes paid on inventory
1 AN ACT
2To amend and reenact R.S.47:6006(B); relative to income and corporation franchise tax
3 credits; to provide with respect for authorization for issuance of refunds for tax
4 credits which exceed taxpayer tax liability; to provide for certain limitations; to
5 provide for effectiveness; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:6006(B) is hereby amended and reenacted to read as follows:
8 ยง6006. Tax credits for local inventory taxes paid
9 * * *
10 B. Credit for taxes paid by corporations shall be applied to state corporate
11 income and corporation franchise taxes. Credit for taxes paid by unincorporated
12 persons shall be applied to state personal income taxes. If the amount of the credit
13 authorized pursuant to Subsection (A) exceeds the amount of tax liability for the tax
14 year, seventy-five percent shall be refundable and twenty-five percent shall be
15 carried forward for calendar years 2015, 2016, 2017, and 2018. In calendar year
16 2019, one hundred percent shall be refundable. The taxpayer shall be entitled to a
17 refund for any allowable credit which exceeds the aggregate tax liability of the
18 taxpayer for the taxes imposed by Chapter 1 and Chapter 5 of Subtitle II of this Title.
19 The secretary shall make such refund to the taxpayer in the amount to which he is
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1147 ENGROSSED
HB NO. 532
1 entitled from the current collections of the taxes collected pursuant to Chapter 1 and
2 Chapter 5 of such Subtitle II.
3 * * *
4 Section 2. This Act shall become effective on July 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 532 Engrossed 2015 Regular Session Stokes
Abstract: Changes the tax credit for local inventory taxes paid from a refundable credit to
a credit in which 75% of the amount of the credit above the liability is refundable
and 25% may be carried forward and applied against subsequent tax liability for
calendar years 2015, 2016, 2017, and 2018.
Present law provides that taxes paid by corporations shall be applied to state corporate
income and corporation franchise taxes. Further provides that credit for taxes paid by
unincorporated persons shall be applied to state personal income taxes.
Present law provides that the taxpayer shall be 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 provides that if the amount of the credit authorized exceeds the amount of tax
liability for the tax year, 75% shall be refundable and 25% shall be carried forward for
calendar years 2015, 2016, 2017, and 2018. Further provides that in calendar year 2019,
100% shall be refundable.
(Amends R.S. 47:6006(B))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Increase the amount of the credit that can be refunded from 65% to 75% and
decrease the amount of the credit that can be carried forward from 35% to 25%.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.