House Bill No. 383, 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 second year, before the credit is eliminated entirely.

Additionally, the bill stipulates that any remaining credits that exceed a taxpayer's tax liability cannot be refunded and can only be applied against future Louisiana corporation income tax liabilities. The provisions of this act will apply to taxable periods starting on or after January 1, 2026, and it is set to become effective on the same date.

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