Senate Bill No. by Senator Luneau proposes significant amendments to Louisiana's tax code regarding the treatment of certain income tax credits. The bill eliminates the refundability of various tax credits, instituting a carryforward period of up to ten years for excess credits instead. This change affects tax credits related to ad valorem taxes paid by unincorporated persons, pass-through entities, telephone companies, and businesses purchasing specialty apparel from contractors in a certified program. Additionally, the bill introduces provisions for tax credits earned for expenditures made on or after January 1, 2026, allowing for a similar carryforward of excess credits.

The legislation also repeals the transferability of SBIR and SBTT tax credits, which previously allowed taxpayers to transfer or sell these credits to other Louisiana taxpayers. Other amendments include changes to the definition of eligible vessels for tax credits related to the Outer Continental Shelf and the use of funds for tax credits. The overall intent is to streamline the application of tax credits while ensuring that taxpayers can benefit from them over an extended period without the immediate refund option. These provisions will apply to taxable periods beginning on or after January 1, 2026, and will take effect upon the governor's signature or after the specified legislative process.

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)