House Bill No. by Representative Echols proposes the enactment of a new income tax credit for qualifying manufacturers in Louisiana, specifically targeting those involved in motor vehicle manufacturing, aerospace products and parts, and medical equipment and supplies. The bill introduces R.S. 47:6003, which allows a credit against Louisiana income tax for any taxable year in which a qualifying taxpayer places qualified manufacturing and productive equipment property into service. The credit amount is calculated based on a percentage of the total aggregate bases of qualifying property, with specific rates for different classifications of property, and is capped at $10 million per taxpayer per taxable year.

Additionally, the bill outlines the definitions of "qualified manufacturing and productive equipment property" and "qualifying taxpayer," as well as stipulations regarding the carryforward of unused credits for up to ten years. It also includes provisions for recapturing credits if the property is disposed of or removed from the state before the end of its recovery period. Notably, taxpayers receiving this credit will not be eligible for any other state tax credits or preferences for the same activities. The provisions of this act will apply to taxable periods beginning on or after January 1, 2026, with an effective date of the same.