The bill amends R.S. 47:6006 regarding tax credits for local inventory taxes paid, specifically prohibiting trusts and estates from claiming the credit while allowing cooperatives and S corporations to claim it under certain conditions. The new language specifies that starting July 1, 2026, no taxpayer classified as a C-corporation, estate, or trust will be eligible for the credit, although cooperatives can earn it if they are allowed a federal income tax deduction for patronage dividends. Additionally, S corporations can earn the credit only for amounts that flow through to shareholders.

The bill also modifies the carry forward period for credits, extending it from five to ten years for taxpayers prohibited from earning a credit. It clarifies that credits for taxes paid by corporations will apply to state corporation income taxes unless an election to flow-through the credit is made. The provisions of this Act will apply to income tax periods beginning on or after January 1, 2025, and it will take effect upon the governor's signature or after the specified time frame if not signed.

Statutes affected:
SB65 Original: 47:6006(A)
SB65 Engrossed: 47:6006(A)
SB65 Reengrossed: 47:6006(A)
SB65 Enrolled: 47:6006(A)
SB65 Act 412: 47:6006(A)