§6108. Refundable tax credits

NOTE: Subsections A and (B)(intro. para.) and Paragraph (1) eff. until Jan. 1, 2026. See Acts 2024, 3rd Ex. Sess., No. 6.

            A. Notwithstanding any other provision of law to the contrary, any excess of allowable credit provided in R.S. 47:6105, 6106, and 6107 and the refundable portion of the credit as provided for in R.S. 47:6104 over the aggregate tax liabilities against which such credit may be applied, as provided in this Section, shall constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary shall make a refund of such overpayment from the current collections of the taxes imposed by Chapter 1 or Chapter 5 of Subtitle II of this Title, together with interest as provided in R.S. 47:1624. The right to a credit or refund of any such overpayment shall not be subject to the requirements of R.S. 47:1621(B). All credits and refunds, together with interest thereof, must be paid or disallowed within one year of receipt by the secretary of any such claim for refund or credit. Failure of the secretary to pay or disallow, in whole or in part, any claim for a credit or a refund shall entitle the aggrieved taxpayer to proceed with the remedies provided in R.S. 47:1625.

            B. Notwithstanding anything to the contrary in either Chapter 1 or Chapter 5 of Subtitle II of this Title, as amended, the following rules shall apply with respect to the application of the credit established in Subsection A of this Section:

            (1) The credit for taxes paid by or on behalf of a corporation shall be applied against Louisiana corporate income and corporation franchise taxes of such corporation.

NOTE: Subsections A and (B)(intro. para.) and Paragraph (1) as amended by Acts 2024, 3rd Ex. Sess., No. 6, eff. Jan. 1, 2026.

            A. Notwithstanding any other provision of law to the contrary, any excess of allowable credit provided in R.S. 47:6105, 6106, and 6107 and the refundable portion of the credit as provided for in R.S. 47:6104 over the aggregate tax liabilities against which the credit may be applied, as provided in this Section, shall constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary shall make a refund of the overpayment from the current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, together with interest as provided in R.S. 47:1624. The right to a credit or refund of any overpayment shall not be subject to the requirements of R.S. 47:1621(B). All credits and refunds, together with interest thereof, must be paid or disallowed within one year of receipt by the secretary of the claim for refund or credit. Failure of the secretary to pay or disallow, in whole or in part, any claim for a credit or a refund shall entitle the aggrieved taxpayer to proceed with the remedies provided in R.S. 47:1625.

            B. Notwithstanding anything to the contrary in Chapter 1 of Subtitle II of this Title, the following rules shall apply with respect to the application of the credit established in Subsection A of this Section:

            (1) The credit for taxes paid by or on behalf of a corporation shall be applied against Louisiana corporate income tax of the corporation.

            (2) The credit for taxes paid by an individual shall be applied against Louisiana personal income taxes.

NOTE: Paragraphs (B)(3), (4) eff. until Jan. 1, 2026. See Acts 2024, 3rd Ex. Sess., No. 6.

            (3) The credit for taxes paid by or on behalf of a corporation classified under Subchapter S of the Internal Revenue Code of 1954, as amended, as an S corporation shall be applied first against any Louisiana corporate income and corporation franchise taxes due by such S corporation, and the remainder of any such credit shall be allocated to the shareholder or shareholders of such S corporation in accordance with their respective interests and applied against the Louisiana income tax of such shareholder or shareholders of the S corporation.

            (4) The credit for taxes paid by or on behalf of a partnership shall be allocated to the partners according to their distributive shares of partnership gross income and applied against any Louisiana income tax and corporation franchise tax liability of such partners.

NOTE: Paragraphs (B)(3), (4) as amended by Acts 2024, 3rd Ex. Sess., No. 6, eff. Jan. 1, 2026.

            (3) The credit for taxes paid by or on behalf of a corporation classified under Subchapter S of the Internal Revenue Code of 1954, as amended, as an S corporation shall be applied first against any Louisiana corporate income tax due by the S corporation, and the remainder of any credit shall be allocated to the shareholder or shareholders of the S corporation in accordance with their respective interests and applied against the Louisiana income tax of the shareholder or shareholders of the S corporation.

            (4) The credit for taxes paid by or on behalf of a partnership shall be allocated to the partners according to their distributive shares of partnership gross income and applied against any Louisiana income tax liability of the partners.

            (5) The character of the credit for taxes paid by or on behalf of a partnership or S corporation and allocated to the partners or shareholders, respectively, of such partnership or S corporation, shall be determined as if such credit were incurred by such partners or shareholders, as the case may be in the same manner as incurred by the partnership or S corporation, as the case may be.

            (6) The credit for taxes paid by an estate or trust shall be applied against the Louisiana income tax imposed on estates and trusts.

            Acts 2007, No. 394, §1, eff. July 10, 2007; Acts 2024, 3rd Ex. Sess., No. 6, §1, eff. Jan. 1, 2026.