House Bill No. 186, introduced by Representative Dewitt, establishes a refundable tax credit for businesses that provide certain forms of compensation to members of the Louisiana National Guard and military reservists. The bill enacts R.S. 47:6044, which defines "inactive duty training" and "reservist differential," the latter being a payment made to employees who are members of the National Guard or reserve components during periods of active duty. The tax credit amount is capped at the lesser of the total IDT compensation and reservist differentials paid during the taxable period or $5,000. Additionally, the total credits granted in a calendar year are limited to $5 million.

The bill outlines the process for claiming the credit, which can be done by corporations, individuals, estates, trusts, and other entities. Taxpayers must maintain records to verify eligibility and the amount claimed, and if the credit exceeds the taxpayer's liability, the excess will be refunded. The provisions of this act will apply to taxable periods beginning on or after January 1, 2026, and no credits may be claimed for taxable years starting after December 31, 2031.