House Bill No. by Representative Dewitt proposes the enactment of a new tax credit under R.S. 47:6044, aimed at providing financial incentives for businesses that compensate members of the Louisiana National Guard and military reservists. The bill establishes a refundable tax credit for employers who pay "inactive duty training" compensation or a "reservist differential" to eligible employees. The 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 definitions of key terms, such as "inactive duty training" and "reservist differential," and specifies that taxpayers claiming the credit must maintain necessary records to verify eligibility. It also details the claiming process for various entities, including corporations and individuals. The provisions of the bill 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. The Department of Revenue is tasked with promulgating rules to implement these provisions.