JEDCO

Business & Tax Incentives

Inventory Tax Credit Program

This program allows for taxpayers who pay ad valorem property taxes on business inventory to claim a one-time credit for use against their Louisiana income or corporate franchise taxes. Taxpayers whose eligible ad valorem taxes are less than or equal to five hundred thousand dollars shall be refunded all of the excess credit. Taxpayers whose eligible ad valorem taxes are more than five hundred thousand dollars, but less than or equal to one million dollars, shall be refunded seventy-five percent of the excess credit, and the remaining twenty-five percent of the excess credit shall be carried forward as a credit against subsequent tax liability for a period not to exceed ten years.

Taxpayers whose ad valorem taxes eligible for the credit authorized pursuant to this Section paid to all political subdivisions in the taxable year was more than one million dollars shall be refunded seventy-five percent of the first one million dollars of excess credit, and the remaining amount of the credit shall be carried forward as a credit against subsequent tax liability for a period not to exceed ten years.

Taxpayers whose ad valorem taxes eligible for the credit authorized pursuant to this Section paid to all political subdivisions in the taxable year was more than one million dollars shall be refunded seventy-five percent of the first one million dollars of excess credit, and the remaining amount of the credit shall be carried forward as a credit against subsequent tax liability for a period not to exceed ten years.

New business entities formed or first registered to do business in Louisiana after April 15, 2016, whose ad valorem taxes are less than ten thousand dollars shall be refunded all of the excess credit. New business entities formed or first registered to do business in Louisiana after April 15, 2016, whose ad valorem taxes are ten thousand dollars or more, but no more than one million dollars, shall be refunded seventy-five percent of the excess credit, and the remaining twenty-five percent of the credit shall be carried forward as a credit against subsequent tax liability for a period not to exceed ten years.

For a manufacturer, if the amount of the credit authorized exceeds the amount of tax liability for the taxable year, the excess credit shall not be refundable and may only be carried forward as a credit against subsequent Louisiana income or corporate franchise tax liabilities for a period not to exceed ten years and shall not be refundable.

Louisiana Department of Revenue
Program Administrator:
Brad Blanchard
Tel: 225 219-2674.
Email: Bradley.blanchard@la.gov
Website: https://revenue.louisiana.gov/