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 19 Original 2016 Second Extraordinary Session Montoucet
Abstract: Reduces the amount of the tax credits for ad valorem taxes paid to all political
subdivisions for inventory from 100% to 80% and modifies refundability of excess credit
amounts for ad valorem taxes paid on and after Jan. 1, 2016.
Present law provides for income or corporation franchise tax credits for ad valorem taxes paid to
political subdivisions on inventory held by manufacturers, distributors, and retailers and for ad
valorem taxes paid to political subdivisions on natural gas held, used, or consumed in providing
natural gas storage services or operating natural gas storage facilities.
Present law provides that if a taxpayer pays less than $10,000 in ad valorem taxes to all political
subdivisions, then any amount of the tax credit that exceeds the taxpayer's tax liability is 100%
refundable to the taxpayer. Further provides that if a taxpayer pays $10,000 or more in ad valorem
taxes to all political subdivisions, then 75% of the amount of the credit that exceeds the taxpayer's
tax liability is refundable to the taxpayer and the remaining 25% of the credit may be carried forward
as a credit against subsequent tax liability for a period not to exceed five years.
Proposed law changes present law by reducing the amount of the credit for inventory taxes paid to
all political subdivisions on and after Jan. 1, 2016, from 100% of the inventory taxes paid to 80%.
Proposed law retains present law regarding the refundability of the excess amount of tax credit for
taxpayers whose tax liability is less than the amount of the credit.
Proposed law prohibits the allowance of any credit provided for in present law on a return filed
before July 1, 2016.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6006(A), (B), and (D))