LAC 61:I.1902 — Inventory Tax Credits

A. Tax Credits for Local Inventory Taxes Paid. R.S. 47:6006 allows a credit for ad valorem taxes paid to local governments on inventory held by manufacturers, distributors, and retailers.
B. Application to Corporations. All entities taxed as corporations for Louisiana income or corporation franchise tax purposes shall claim any credit allowable for inventory taxes paid by them on their corporation income and corporation franchise tax return. This includes, but is not limited to:
1. S corporations;
2. partnerships taxed as corporations for income tax purposes;
3. limited liability companies (LLC's) taxed as corporations for income tax purposes.
C. Application to Individuals, Estates, and Trusts
1. All individuals shall claim on their individual income tax returns any credit allowable for inventory taxes paid by them.
2. Estates or trusts shall claim on their fiduciary income tax returns any credit allowable for inventory taxes paid by them.
D. Application to Partnerships. Any credit allowable for inventory taxes paid by partnerships not taxed as corporations shall be claimed on the returns of the partners as follows.
1. Corporation partners shall claim the credit on their corporation income or corporation franchise tax returns.
2. Individual partners shall claim the credit on their individual income tax returns.
3. Partners that are estates or trusts shall claim the credit on their fiduciary income tax returns.
E. Documentation for Claiming the Credit
1. The following documentation shall be submitted with any return claiming the credit at the time of filing:
a. Form R-10610, Schedule of Ad Valorem Tax Credit Claimed by Manufacturers, Distributors, and Retailers;
b. a copy of the ad valorem (property) tax assessment prepared by the assessor’s office; and
c. a copy of the cancelled check or receipt of electronic payment for the ad valorem (property) tax assessment.
2. A manufacturer that has claimed the property tax exemption under the Industrial Tax Exemption Program (ITEP) during the taxable year in which the local inventory taxes were levied and members of a consolidated federal income tax return that includes a manufacturer who has claimed the property tax exemption under ITEP must submit the following documentation with the return at the time of filing:
a. Form R-10610-ITE, Schedule of Ad Valorem Tax Credit Claimed by ITEP Manufacturers for Ad Valorem Tax Paid on Inventory;
b. a copy of the ad valorem (property) tax assessments prepared by the assessor’s office; and
c. a copy of the cancelled check or receipt of electronic payment for the ad valorem (property) tax assessments.
3. The accrual of interest shall be suspended during any period of time that a delay in the issuance of a refund is attributable to the taxpayer’s failure to provide any of the information or documentation required herein, as provided by R.S. 47:1624(F).