Forest ProductsTax Credit Sourcebook

Louisiana · Inventory · LA-INVINV-001

Inventory Tax Credit

Publication revised September 24, 2026. Sourcebook page 126.

Credit amount / calculation

Credit for eligible inventory property tax paid, subject to taxpayer-type and payment-date rules. New credits are not generally available to C corporations for inventory taxes paid on or after July 1, 2026.

Business fit and eligible activity

Forest-products businesses with large taxable inventory may benefit where current taxpayer-type rules permit; 2026 law changed corporate availability. Eligible inventory property tax paid; not the market value of inventory.

Eligibility and practical use

For property taxes paid July 1, 2026 or later, the credit is eliminated for C corporations, estates and trusts, with a statutory cooperative exception. Eligible pass-through businesses may continue to qualify. Determine entity type and payment date before counting any benefit. Page

Illustrative business benefit

A qualifying pass-through business pays $20,000 of eligible inventory property tax. The starting credit is $20,000, not a percentage of the inventory value. Owner-level allocation, tax liability and refund rules determine usable savings.

Timing / first action

Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Confirm federal entity classification and the date the inventory property tax was paid.

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