RDCSB182 2991 3519
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)]
SB 182 Engrossed 2017 Regular Session Morrell
Present law provides for a refundable tax credit for local ad valorem taxes paid on inventory
and limits refundability for certain affiliated taxpayers.
Proposed law retains present law and restricts the refund limitation for affiliated taxpayers
to taxpayers that are members of the same federal consolidated group for federal income tax
purposes.
Present law provides that for a manufacturer, as defined in proposed law, and for all related
parties, affiliates, subsidiaries, parent companies, or owners of such manufacturer for the
inventory held that is related to the business of such manufacturer, if the amount of the credit
authorized pursuant to proposed law exceeds the amount of tax liability for the tax year, the
excess credit may only be carried forward as a credit against subsequent Louisiana income
or corporation franchise tax liability for a period not to exceed five years and shall not be
refundable. The secretary shall promulgate rules to ensure that taxpayers affiliated with or
related to any other entity through common ownership by the same interests or as a parent
or subsidiary shall be considered one taxpayer for the purpose of the limitations on
refundability provided for in this Paragraph. This rulemaking authority shall be in addition
to the rulemaking authority provided for elsewhere in this Title.
Proposed law retains present law but makes related party language uniform throughout
proposed law.
Proposed law is applicable to all claims for the credit on any return filed on or after July 1,
2017, regardless of the taxable year to which the return relates. Further prohibits application
of proposed law to claims for the credit on an amended return filed on or after July 1, 2017,
if the credit was properly claimed on an original return that was filed prior to July 1, 2017.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6006(B)(2) and (4))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Provides for uniformity as it relates to the designation of "related parties"
regarding consolidated federal income tax return.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
engrossed bill:
1. Add applicability provisions.
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