Senate Bill No. 229, introduced by Senator Foil, amends the existing law regarding the tax credit for local inventory taxes paid by manufacturers, distributors, and retailers. The bill prohibits trusts and estates from claiming this credit and allows cooperatives and S corporations to claim it under specific conditions. Notably, the bill changes the prohibition for C-corporations from being applicable to taxable periods beginning on or after July 1, 2026, to payments of ad valorem taxes made on or after that date. Additionally, it clarifies that the prohibition applies to both C-corporations and estates or trusts subject to certain taxes.

The bill also extends the carry forward period for taxpayers prohibited from earning a credit from five years to ten years. It specifies that credits for taxes paid by corporations will be applied to state corporation income taxes unless an election to flow-through the credit is made, in which case shareholders of S corporations can claim the credit. Furthermore, the bill updates references from "individual" income tax to "personal" income tax. The provisions of this act will be applicable to income tax periods beginning on or after January 1, 2025, and will take effect upon the governor's signature or after the lapse of time for gubernatorial action.

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