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Committee shortens phase-out of C‑corp inventory tax credit and gives industry a runway to plan
Summary
The committee reported House Bill 383 as amended to postpone termination of a corporate inventory tax credit and shorten the phase-down timeline; industry groups and local chambers supported the measure as giving needed certainty while state leaders pursue longer-term reform.
House Bill 383, sponsored by Vice Chair Brass, was reported with amendments after committee members adopted a technical amendment set and a separate amendment that shortened the phase-out runway for a corporate credit on local inventory taxes.
The bill delays the scheduled expiration of the corporate inventory tax credit and includes a ramp-down schedule the committee amended to shorten the number of years and accelerate reductions. Vice Chair Brass said the goal is to provide businesses and local governments a predictable runway while further constitutional or structural reforms are pursued. Committee counsel said the amendment set (2,167) implemented the shortened three-year ramp described on the record.
Industry groups including LAMOGA, the Louisiana Chemical Association and local chambers testified in favor, saying the sooner businesses have certainty the better they can invest and coordinate with parishes where industrial facilities operate. Testimony noted ongoing work with local governments on mitigation and later constitutional options for eliminating the inventory tax.
The committee reported HB 383 with amendments and asked the fiscal office to provide updated fiscal notes as the bill moves forward.
