A refundable tax credit is allowed for ad valorem taxes paid to political subdivisions on inventory held by manufacturers, distributors, and retailers. The credit is equal to 100 percent of the ad valorem tax paid.
Legal Citation
R.S. 47:6006
Origin
Acts 1991, No. 153, amended by Acts 1994, No. 28; Acts 2002, No. 11; Acts 2005, No. 363
Effective Date
July 1, 1992
Related Provision
R.S. 47:6028 (sunset date, December 31, 2007)
Beneficiaries
All corporations that are manufacturers, distributors and retailers paying ad valorem taxes on inventory
Administration
The purpose of this credit is achieved in a fiscally effective manner.
Estimated Fiscal Effect
The estimated fiscal effect of the inventory tax credit is shown in the listing of credits for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.
32. Ad Valorem Tax on Natural Gas
A refundable credit is allowed for ad valorem taxes paid to political subdivisions of Louisiana on natu- ral gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. Legal Citation R.S. 47:6006 Origin Acts 2005, No. 363 Effective Date August 15, 2005 Beneficiaries
All corporations paying ad valorem taxes on natural gas held, used, or consumed in providing natural gas storage services
Administration
The purpose of this credit is achieved in a fiscally effective manner.
Estimated Fiscal Effect
The estimated fiscal effect of the inventory tax credit is shown in the listing of credits for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.
[ 74 ]
Corporation Franchise Tax
{ Credits }
33. Ad Valorem Tax Credit for Offshore Vessels
A refundable credit is allowed for ad valorem taxes paid on vessels that operate principally in Outer Continental Shelf Lands Act Waters. To qualify for the credit, the taxpayer must certify to the assessor that the vessel operated principally in outer continen- tal shelf waters within the calendar year immediately before the tax year of assessment of the vessel and the ad valorem tax must have been paid to the political subdivision without protest. The credit is equal to 100 percent of the taxes paid.
Legal Citation
R.S. 47:6006.1
Origin
Acts 1994, 3rd Ex. Sess., No. 59, amended by Acts 2002, No. 11
Beneficiaries
Corporations paying ad valorem taxes on vessels oper- ating in Outer Continental Shelf Lands Act Waters
Administration
The purpose of this credit is achieved in a fiscally effective manner.
Estimated Fiscal Effect
The estimated fiscal effect of the inventory tax credit is shown in the listing of credits for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.
34. Credit for Ad Valorem Tax Paid by Certain Telephone Companies
A refundable credit is allowed for 40 percent of the total ad valorem taxes paid to Louisiana political subdivisions by telephone companies on their public service properties which are assessed by the Louisiana Tax Commission at 25 percent of fair market value pursuant to R.S. 47:1854. The purpose of this credit is to reduce the effective assessment rate of eligible telephone companies to 15 percent of fair market value. Legal Citation R.S. 47:6014 Origin Acts 2000, No. 22 Effective Date
The credit is effective for income and franchise tax years ending on or after December 31, 2001.
Beneficiaries
Telephone companies and the public they serve
Administration
The purpose of this credit is achieved in a fiscally effective manner.
Estimated Fiscal Effect
The estimated fiscal effect of this credit is shown in the listing of credits for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.
[ 75 ]
Corporation Franchise Tax
35. Credit for Purchases from Prison Industry Enhancement Contractors
A refundable credit is allowed for the state sales and use taxes paid on purchases of specialty apparel items from a Private Sector Prison Industry Enhancement (PIE) contractor. PIE contractors use inmate labor to produce items for sale and then pay 30 percent of the salary paid to the inmates back to the state.
Legal Citation
R.S. 47:6018
Origin
Acts 2002, No. 32, amended by Acts 2007, No. 466
Effective Date
Reestablished for tax years beginning after January 1, 2007
Beneficiaries
Private Sector Prison Industry Enhancement Contractor
Administration
The purpose of this credit is achieved in a fiscally effective manner.
Estimated Fiscal Effect
The estimated fiscal effect of this credit is shown in the listing of credits for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.
36. Sugarcane Transport Credit
A refundable credit is allowed for the cost paid by a taxpayer to acquire an eligible sugarcane trailer, to replace an eligible sugarcane trailer, or to convert an ineligible sugarcane trailer to an eligible sugarcane trailer. “Eligible sugarcane trailer” means a trailer that hauls sugarcane and meets the requirements of R.S. 32:387.7(B). Effective for costs of conversions or modifications of eligible sugarcane trailers paid on and after January 1, 2009 , but before January 1, 2014..
Legal Citation
R.S. 47:6029
Origin
Acts 2007, No. 365, amended by Acts 2007, No. 368
Effective Date
January 1, 2009
Sunset Date
December 31, 2013
Beneficiaries
Owners of vehicles hauling sugarcane
Administration
The purpose of this exemption is achieved in a fis cally effective manner.
Estimated Fiscal Effect
The estimated fiscal effect of this credit is shown in the listing of credits for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.
[ 76 ]
Corporation Franchise Tax
{ Credits }
37. Milk Producers Tax Credit
A refundable credit is allowed for resident taxpay- ers engaged in the business of producing milk for sale. The credit will be allowed when the USDA Uniform Price in Federal Order Number 7 drops below the announced production price established by the Department of Agriculture and Forestry any time during the calendar year. Qualified taxpayers are eligible for tax credits based on the production and sale of milk below the announced production price over a calendar year.
The Department of Health and Hospitals must cer- tify to the Department of Revenue, by January 31 of the following year, which milk producers are eligible to receive the credits. Any producer not certified by the Department of Health and Hospitals will not be entitled to the credits. The credits allowed for each milk producer may not exceed $30,000 per calendar year, and the total amount of tax credits allowed for all producers may not exceed $2.5 million per calen- dar year. Legal Citation R.S. 47:6032 Origin Acts 2007, No. 461 Effective Date January 1, 2007 Beneficiaries
Resident taxpayers engaged in the business of produc- ing milk for sale
Administration
The purpose of this exemption is achieved in a fiscally effective manner.
Estimated Fiscal Effect
The estimated fiscal effect of this credit is shown in the listing of credits for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.
38. School Readiness Child Care Provider Credit
The School Readiness Tax Credits are a compre- hensive effort to support Quality Start, a voluntary, quality rating system by the Department of Children and Family Services (DCFS) for child care centers through tax breaks to families, child care providers, child care teachers and directors, as well as businesses that support child care.
Child care providers participating in Quality Start are allowed a refundable credit based on the average monthly number of children who either participate in the Child Care Assistance Program administered by DCFS or who are foster children in the custody of DCFS and attending facilities operated by a child care provider, multiplied by an amount based upon the quality rating of the facility.
Legal Citation R.S. 47:6105 Origin Acts 2007, No. 394 Effective Date January 1, 2008 Beneficiaries
Participating child care providers and children attend- ing child care facilities participating in Quality Start
Administration
The purpose of this exemption is achieved in a fiscally effective manner.
Estimated Fiscal Effect
The estimated fiscal effect of this credit is shown in the listing of credits for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.
Corporation Franchise Tax
{ Credits }
39. School Readiness Business Supported Child Care Credit
The School Readiness Tax Credits are a compre- hensive effort to support Quality Start, the new, voluntary, quality rating system by the Department of Children and Family Services for child care centers through tax breaks to families, child care providers, child care teachers and directors, as well as businesses that support child care.
A refundable credit is allowed for a taxpayer who incurs eligible business-supported child-care expenses. The credit amount depends upon the quality rating of the child care facility to which the expenses are related or the quality rating of the child care facility that the child attends. Eligible business-supported child-care expenses include expenses to construct, renovate, or expand a child care center, purchase equipment for a center, maintain or operate a center, or subsidize child care for their employees.
Legal Citation R.S. 47:6107(A)(1) Origin Acts 2007, No. 394 Effective Date January 1, 2008 Beneficiaries
Businesses that support child care centers participat- ing in Quality Start, the child care centers and stu- dents and the state through the increase in the quality of child care and early learning
Administration
The purpose of this exemption is achieved in a fiscally effective manner.
Estimated Fiscal Effect
The estimated fiscal effect of this credit is shown in the listing for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.
40. School Readiness Fees and Grants to Resource and Referral Agencies Credit
The School Readiness Tax Credits are a compre- hensive effort to support Quality Start, the new, voluntary, quality rating system by the Department of Children and Family Services for child care centers through tax breaks to families, child care providers, child care teachers and directors, as well as businesses that support child care.
A refundable credit is allowed for a taxpayer whose business pays fees and grants to child care resource and referral agencies. These are private agencies that contract with the Department of Children and Family Services to provide important information and services to parents and child care providers. The credit is equal to the amount donated but cannot exceed $5,000 per tax year.
Legal Citation R.S. 47:6107(A)(2) Origin Acts 2007, No. 394 Effective Date January 1, 2008 Beneficiaries
Businesses that support child care centers participat- ing in Quality Start, the child care centers and stu- dents and the state through the increase in the quality of child care and early learning
Administration
The purpose of this exemption is achieved in a fiscally effective manner
Estimated Fiscal Effect
The estimated fiscal effect of this credit is shown in the listing of credits for corporation income tax and includes the total revenue loss for corporation income and franchise taxes.