House Bill No. [insert number] proposes the establishment of an income tax credit for pharmaceutical and medicine manufacturers under the newly enacted R.S. 47:6003, known as the Louisiana Drug Manufacturing Repatriation Act. This credit is available to qualifying taxpayers who place qualified drug manufacturing and productive equipment property into service during a taxable year. The bill defines "qualifying taxpayer" as entities engaged in pharmaceutical manufacturing that relocate operations from specific foreign countries to Louisiana. The credit amount is calculated based on a percentage of the total aggregate bases of qualifying property, with a maximum limit of $10 million per taxpayer per taxable year.

The legislation also outlines the conditions under which the credit can be claimed, including provisions for carrying forward unused credits for up to ten years and recapturing credits if the property is disposed of or removed from the state before the end of its recovery period. Additionally, taxpayers receiving this credit are ineligible for other state tax credits or benefits related to the same activity. The provisions of this act will apply to taxable periods beginning on or after January 1, 2026, with an effective date of the same.