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 805 Engrossed 2015 Regular Session Adams
Abstract: Changes the tax credit for ad valorem taxes paid on certain inventory, natural gas, and
vessels in Outer Continental Shelf Lands Act Waters from refundable credits to credits in
which 75% of the excess credit amount shall be refundable and 25% of the excess credit
amount 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 from a refundable credit to one in which 75% of excess credit
amounts which exceed taxpayer liability shall be refundable and 25% of the excess credit amounts
may be carried forward against subsequent income or corporation franchise tax liability for up to five
years.
Present law provides for a La. income or corporation franchise tax credit for ad valorem taxes paid
without protest to political subdivisions on vessels in Outer Continental Shelf Lands Act Waters as
certified to the assessor pursuant to present law within the calendar year immediately preceding the
taxable year of assessment of the vessel. The amount of the credit shall be equal to 100% of the ad
valorem 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 and to pay or disallow claims
for credits, refunds, and interest within 90 days of receiving a tax credit or refund claim.
Proposed law changes the tax credit from a refundable credit to one in which 75% of excess credit
amounts which exceed taxpayer liability shall be refundable and 25% of the excess credit amounts
may be carried forward against subsequent income or corporation franchise tax liability for up to five
years. Proposed law removes references to refunds and interest from the requirement that the
secretary pay tax credit amounts within one year of receipt of the tax credit claim. Applicable to all claims for these tax credits on any return filed on or after July 1, 2015, regardless
of the taxable year to which the return relates.
(Amends R.S. 47:6006(A) and (B) and 6006.1(C) and (D))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Delete the income or corporation franchise tax credit for ad valorem taxes paid by a
telephone company for public service property owned by the telephone company which
is assessed by the La. Tax Commission at 25% of fair market value from the provisions
of proposed law.
2. Change the tax credits from 100% nonrefundable to credits in which 75% of excess
credit amounts which exceed taxpayer liability shall be refundable and 25% of the excess
credit amounts may be carried forward against subsequent income or corporation
franchise tax liability for up to five years.
3. Add applicability provision for all claims for these tax credits on returns filed on or after
July 1, 2015, regardless of the taxable year to which the return relates.