Louisiana HB 230: TAX CREDITS: Establishes an income tax credit for motor vehicle manufacturers and motor vehicle manufacturing suppliers (OR DECREASE GF RV See Note)

Bill Text

HLS 25RS-529 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 230
BY REPRESENTATIVE WALTERS
TAX CREDITS: Establishes an income tax credit for motor vehicle manufacturers and
motor vehicle manufacturing suppliers
1 AN ACT
2 To enact R.S. 47:6003, relative to tax credits; to establish an income tax credit for motor
3 vehicle manufacturers and suppliers to those manufacturers; to provide for eligibility
4 for the credit; to provide for calculation of credit amounts; to limit the amount of
5 credit that a taxpayer may earn in a taxable year; to authorize the carrying forward
6 of unused credit amounts; to provide for recapture of credit amounts in certain
7 circumstances; to provide for claiming of the credit; to provide for definitions; to
8 authorize administrative rulemaking; to provide for applicability; to provide for an
9 effective date; and to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 47:6003 is hereby enacted to read as follows:
12 §6003. Motor vehicle manufacturing investment tax credit
13 A. There shall be allowed a credit against any Louisiana income tax for any
14 taxable year in which a qualifying taxpayer places qualified manufacturing and
15 productive equipment property in service. For state income tax purposes, the basis
16 of the qualified manufacturing and productive equipment property shall be reduced
17 by the amount of any credit claimed with respect to the property.
18 B.(1)(a) The amount of the credit authorized by this Section shall equal the
19 aggregate of all of the following:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.

HLS 25RS-529 ORIGINAL
HB NO. 230
1 (i) One-half percent of total aggregate bases for all three-year property that
2 qualifies.
3 (ii) One percent of total aggregate bases for all five-year property that
4 qualifies.
5 (iii) One and one-half percent of total aggregate bases for all seven-year
6 property that qualifies.
7 (iv) Two percent of total aggregate bases for all ten-year property that
8 qualifies.
9 (v) Two and one-half percent of total aggregate bases for all fifteen-year or
10 greater property that qualifies.
11 (b) For any taxable year, the maximum credit amount allowed to a qualifying
12 taxpayer pursuant to this Section shall be ten million dollars.
13 (2) For purposes of this Subsection, the classification of property as
14 three-year property, five-year property, seven-year property, ten-year property, or
15 fifteen-year property shall be determined based on the applicable recovery period for
16 the property provided in Section 168(e) of the Internal Revenue Code.
17 C. For purposes of this Section, the following terms shall have the meanings
18 ascribed to them in this Subsection:
19 (1) "Department" means the Department of Revenue.
20 (2)(a) "Qualified manufacturing and productive equipment property" means
21 any property that meets all of the following qualifications:
22 (i) It is used as an integral part of manufacturing or production.
23 (ii) It is tangible property to which Section 168 of the Internal Revenue Code
24 applies.
25 (iii) It is deemed Section 1245 property in accordance with Section
26 1245(a)(3) of the Internal Revenue Code.
27 (iv) The property is acquired by the taxpayer and its original use commences
28 with the taxpayer within this state or it is constructed, reconstructed, or erected by
29 the taxpayer within this state.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.

HLS 25RS-529 ORIGINAL
HB NO. 230
1 (b) In the case of any computer software which is used to control or monitor
2 a manufacturing or production process inside this state and with respect to which
3 depreciation, or amortization in lieu of depreciation, is allowable, the software shall
4 be deemed qualified manufacturing and productive equipment property for purposes
5 of this Section.
6 (3) "Qualifying taxpayer" means any entity that meets either of the following
7 criteria:
8 (a) Engages in activities classified as motor vehicle manufacturing within
9 Sector 31-33 (manufacturing) of the North American Industry Classification System
10 published by the United States Bureau of the Census.
11 (b) Has as its primary business activity the supplying of goods, components,
12 or services used in motor vehicle manufacturing.
13 D. The credit provided for in this Section shall be allowed against the
14 income tax due from a qualifying taxpayer for the taxable period in which the credit
15 is earned. If the credit allowed pursuant to this Section exceeds the amount of taxes
16 due from a qualifying taxpayer, then any unused credit amount may be carried
17 forward by the taxpayer as a credit against subsequent tax liability for a period not
18 to exceed ten years. However, in no event shall the amount of the credit applied by
19 a qualifying taxpayer in a taxable period exceed the amount