Prohibits all claims for and refunds of tax credits filed for tax years beginning during calendar year 2015, and defers such claims and refunds to tax years beginning during 2016. (gov sig)
The bill has a significant impact on Louisiana's tax code by delaying the application of certain tax credits. It mandates that individuals and corporations must defer their tax benefits from 2015, which are now reassigned to the 2016 tax year. Taxpayers who would not have sufficient taxable income in 2016 to apply these credits may seek a refund from the Department of Revenue, at the secretary's discretion. This deferral process will likely lead to complications for many taxpayers in fiscal planning for 2016, as they will have to adjust their expectations regarding tax liabilities and refunds.
Senate Bill 90, introduced by Senator Adley, addresses issues surrounding tax credits for the 2015 tax year. Specifically, the bill prohibits claims for individual and corporate income tax credits that would apply to tax years beginning in 2015. Furthermore, any refunds related to these credits cannot be made for that tax year. However, the bill allows these credits to be applied in tax years beginning in 2016, meaning taxpayers will have to delay the benefits they would have received in 2015 until the following year. This postponement is intended to manage and stabilize the state's tax credit landscape during a time of fiscal uncertainty.
The sentiment around SB 90 appears mixed, with some legislative members viewing it as a necessary measure to address potential shortfalls in state revenue. Proponents argue that the deferral is a prudent approach to maintain fiscal discipline. Conversely, opponents may see it as a burden imposed on taxpayers who were counting on the tax credits to alleviate their financial liabilities in 2015. This contrasting perspective reflects broader concerns about the managing of state finances and the economic impact on individual taxpayers and businesses.
A point of contention surrounding SB 90 is the necessity of deferring tax credits during a specific tax year. While some legislators support the idea of deferring tax credits to avoid immediate financial strain on the state, others express concern over the potential negative impact on taxpayers who are in need of immediate tax relief. The discussions surrounding this bill reflect tensions between fiscal policy strategies and the pressing needs of taxpayers who rely on tax credits for budgeting and financial stability.