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LouisianaSB 652025 Regular SessionSenateWALLET

TAX/TAXATION: Provides for the treatment of certain pass through entities under the inventory tax credit. (gov sig) (EN INCREASE SD RV See Note)

Sponsored By: Franklin J. Foil (Republican)

Signed by Governor

Ways and MeansRevenue and Fiscal Affairs

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

More time to use old inventory credits

For income tax periods beginning on or after January 1, 2025, taxpayers barred from earning new inventory credits get more time to use remaining credits. The law adds 10 years beyond each credit's otherwise scheduled expiration date. Credits whose carry-forward period expired before January 1, 2025, do not qualify.

Tighter inventory tax credits for corporations

C corporations and estates or trusts subject to Louisiana's estate-and-trust income tax cannot earn inventory credits for property taxes paid beginning July 1, 2026. Cooperatives qualify only if federal law allows them to deduct patronage dividends paid or allocated to members. For tax periods beginning on or after January 1, 2025, C corporations cannot get refunds for credits above their tax bill. Those excess credits can only reduce future Louisiana corporate income taxes.

Inventory credit choices and limits for owners

For income tax periods beginning on or after January 1, 2025, corporate inventory credits generally reduce Louisiana corporate income taxes. A corporation can elect to pass credits through, with S corporation shareholders claiming amounts allowed under R.S. 47:287.732(B). Credits for unincorporated taxpayers and pass-through businesses reduce Louisiana personal income taxes. For property taxes paid beginning July 1, 2026, S corporations earn credits only for amounts passed through to shareholders. Credit amounts must be proportional to amounts calculated under that same state tax rule.

Sponsors & Cosponsors

Sponsor

  • Franklin J. Foil

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 142 • No: 0

House vote • 5/28/2025

Read third time by title, amended, roll called on final passage, yeas 95, nays 0. Finally passed, ordered to the Senate.

Yes: 95 • No: 0

House vote • 5/19/2025

Reported favorably

Yes: 11 • No: 0

Senate vote • 5/7/2025

Senate floor amendments read and adopted. Read by title and passed by a vote of 36 yeas and 0 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.

Yes: 36 • No: 0

Actions Timeline

  1. Signed by the Governor. Becomes Act No. 412.

    6/20/2025Senate

  2. Effective date 6/20/2025.

    6/20/2025Senate

  3. Enrolled. Signed by the President of the Senate.

    6/12/2025Senate

  4. Signed by the Speaker of the House.

    6/12/2025House

  5. Sent to the Governor by the Secretary of the Senate on 6/13/2025.

    6/12/2025Senate

  6. Called from the Calendar.

    6/11/2025Senate

  7. Read by title and returned to the Calendar, subject to call.

    6/1/2025Senate

  8. Read third time by title, amended, roll called on final passage, yeas 95, nays 0. Finally passed, ordered to the Senate.

    5/28/2025House

  9. Received from the House with amendments.

    5/28/2025Senate

  10. Scheduled for floor debate on 05/28/2025.

    5/27/2025House

  11. Read by title, passed to 3rd reading.

    5/21/2025House

  12. Reported without Legislative Bureau amendments.

    5/20/2025House

  13. Reported favorably (11-0). Referred to the Legislative Bureau.

    5/19/2025House

  14. Read by title, under the rules, referred to the Committee on Ways and Means.

    5/12/2025House

  15. Received in the House from the Senate, read by title, lies over under the rules.

    5/8/2025House

  16. Called from the Calendar.

    5/7/2025Senate

  17. Senate floor amendments read and adopted. Read by title and passed by a vote of 36 yeas and 0 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.

    5/7/2025Senate

  18. Read by title and returned to the Calendar, subject to call.

    4/22/2025Senate

  19. Read by title. Committee amendments read and adopted. Ordered engrossed and passed to third reading and final passage.

    4/16/2025Senate

  20. Reported with amendments.

    4/15/2025Senate

  21. Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Revenue and Fiscal Affairs.

    4/14/2025Senate

  22. Prefiled and under the rules provisionally referred to the Committee on Revenue and Fiscal Affairs.

    4/2/2025Senate

Bill Text

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