Senate Bill No. 65 amends the existing law regarding the tax credit for local inventory taxes paid by manufacturers, distributors, and retailers in Louisiana. The bill allows S corporations to claim the credit under specific conditions, particularly when an election to flow-through the credit to shareholders is made. It also clarifies that the prohibition on claiming the credit for C-corporations and certain estates or trusts applies for taxable periods beginning on or after July 1, 2026. Additionally, the bill introduces a provision that allows taxpayers to carry forward any remaining credits for an additional five years from the expiration date of the credits.

The bill further modifies the application of credits for taxes paid by corporations, stating that these credits will be applied to state corporation income taxes unless a flow-through election is made. It also changes references from "individual income tax" to "personal income tax" in relation to credits claimed by unincorporated persons and pass-through entities. The provisions of this act will be applicable to income tax periods starting on or after January 1, 2025, and will take effect upon the governor's signature or after the designated time for gubernatorial action.

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