Senate Bill No. 44, introduced by Senator Luneau, amends existing Louisiana tax law regarding the transfer and refundability of certain income tax credits. The bill specifically addresses tax credits for ad valorem taxes paid by unincorporated persons, pass-through entities, and restaurants that donate oyster shells. Notably, the bill removes the provision for refundability of these credits, instead allowing taxpayers to carry forward excess credits against future Louisiana individual income tax liabilities for a period not to exceed ten years. This change applies to various tax credits, including those related to inventory taxes and taxes paid on vessels in Outer Continental Shelf Lands Act Waters.

The bill also includes amendments to clarify the definitions and applicability of these tax credits, ensuring that taxpayers can claim them on their individual income tax returns. The effective date for these changes is set for taxable periods beginning on or after January 1, 2026, and the bill will take effect upon the governor's signature or after the lapse of time for gubernatorial action. Overall, the proposed law aims to streamline the process for claiming tax credits while limiting immediate refunds, thereby encouraging long-term tax planning for affected taxpayers.

Statutes affected:
SB44 Original: 47:6006(B), 47:1(D), 47:6014(D), 47:6018(E), 47:6022(E)(2), 47:6043(B)(1), 47:1(C), 47:6015(D)
SB44 Engrossed: 47:6006(B), 47:1(D), 47:6043(B)(1), 47:1(C)
SB44 Reengrossed: 47:6006(B), 47:1(D)(1), 47:6043(B)(1), 47:1(C)