House Bill No. 909, introduced by Representative Brass, amends the existing law regarding tax credits for local inventory taxes paid by C-corporations. The bill postpones the termination of the tax credit from July 1, 2026, to July 1, 2028, allowing C-corporations to claim the credit for an extended period. However, it also introduces a phased reduction in the credit amount: for taxable periods beginning on or after July 1, 2026, the credit will be reduced by 50% for the first year and by 75% for the following year, before being eliminated entirely.

The bill stipulates that any remaining credits can be carried forward for an additional five years from the original expiration date, but this carry forward does not apply to credits that have already expired. The provisions of this act will take effect on January 1, 2026, and will apply to taxable periods beginning on or after that date. Overall, the bill aims to provide temporary relief to C-corporations while gradually reducing the benefits of the tax credit.

Statutes affected:
HB383 Original: 47:6006(A)(3)
HB383 Engrossed: 47:6006(A)(3)