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 383 Original 2025 Regular Session Brass
Abstract: Extends the period for which C-corporation tax filers can claim a tax credit for local
inventory taxes paid to June 30, 2036, but reduces the credit amount for those filers by 20%
every two years before eliminating the credit in 2036.
Present law establishes an income tax credit for ad valorem taxes paid to political subdivisions on
inventory held by manufacturers, distributors, and retailers, referred to hereafter as local inventory
taxes paid.
Present law provides that no credit for local inventory taxes paid shall be allowed to C-corporations
for taxable periods beginning on or after July 1, 2026. Proposed law changes this sunset date for the
tax credit for C-corporations to July 1, 2036.
Proposed law provides that for taxable periods beginning on or after July 1, 2028, the credit for a
C-corporation shall be reduced by 20% every two years until the credit sunsets on July 1, 2036.
Proposed law applies to taxable periods beginning on or after Jan. 1, 2026.
Effective January 1, 2026.
(Amends R.S. 47:6006(A)(3))