SLS 21RS-844 ORIGINAL
2021 Regular Session
SENATE BILL NO. 242
BY SENATOR WARD
TAX/TAXATION. Clarifies the carryforward period for the inventory tax credit. (gov sig)
1 AN ACT
2 To amend and reenact Section 2 of Act. No. 55 of the 2020 Second Extraordinary Session
3 of the Legislature, relative to the carryforward period for the tax credit for ad
4 valorem taxes paid on inventory; to provide for applicability of the carryforward
5 period; to provide for an effective date; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. Section 2 of Act. No. 55 of the 2020 Second Extraordinary Session of the
8 Legislature is hereby amended and reenacted to read as follows:
9 Section 2. This Act shall become effective on January 1, 2021, and shall increase
10 the carryforward period from five to ten years for carryforward balances of the credit
11 remaining as of December 31, 2020.
12 Section 3. This Act shall become effective upon signature by the governor or, if not
13 signed by the governor, upon expiration of the time for bills to become law without signature
14 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
15 vetoed by the governor and subsequently approved by the legislature, this Act shall become
16 effective on the day following such approval.
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 242
SLS 21RS-844 ORIGINAL
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 242 Original 2021 Regular Session Ward
Present law provides an income and franchise tax credit for local ad valorem taxes on
inventory paid by manufacturers and retailers.
Present law authorizes a full refund of the credit for ad valorem taxes on inventory paid for
certain small businesses, a refund of 75% of the taxes paid when ad valorem taxes are $1
million or less, and a nonrefundable income and franchise tax credit for the remainder of ad
valorem taxes paid.
Present law provides that the nonrefundable portion of the tax credit may be carried forward
for a maximum of 10 years.
Proposed law clarifies that the carryforward period increased from five to 10 years for all
carryforward balances of the credit remaining as of Dec. 31, 2020.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends ยง2 of Act. No. 55 of 2020, 2nd E.S.)
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.