La. Admin. Code tit. 33 § VII-10415
Current through Register Vol. 50, No. 6, June 20, 2024
Section VII-10415 - Amount of CreditA. The maximum total credit related to a purchase of qualified new recycling manufacturing or process equipment and/or a qualified service contract that may be allowable for all taxable periods is 14 percent of the cost of the qualified recycling equipment or qualified service contract, less the amount of any other Louisiana tax credits for the purchase of the equipment or the cost of the service contract. The total tax credits allowed under this Chapter shall be limited to five million dollars per tax year. Example: Cost of equipment | $1,000,000 |
| X .14 |
| $ 140,000 |
Less other Louisiana credit on purchase | $ 40,000 |
Maximum credit for all taxable periods | $ 100,000 |
B. Fourteen percent of the maximum total credit related to a purchase of qualified recycling equipment and/or a qualified service contract is earned each taxable period in which the equipment or service contract continues to be in use exclusively in the state of Louisiana to a maximum of five periods. Example: Maximum credit for all taxable periods | $ 100,000 |
| X .14 |
Credit earned for this taxable period | $ 14,000 |
B. One-fifth (20 percent) of the maximum total credit related to a purchase of qualified recycling equipment and/or a qualified service contract is earned each taxable period in which the equipment or service contract continues to be in use exclusively in the state of Louisiana to a maximum of five periods. Example: Maximum credit for all taxable periods | $ 100,000 |
| X .20 |
Credit earned for this taxable period | $ 20,000 |
C. The maximum credit that may be claimed for all purchases of qualified recycling equipment and/or qualified service contracts, including carryover of previously earned but unused credits, in any taxable period shall not exceed 50 percent of the tax that would be otherwise due. Example: Tax otherwise due: | |
Income tax | $ 12,000 |
Franchise tax | $ 18,000 |
Total | $ 30,000 |
| X .50 |
Maximum credit to be claimed on return | $ 15,000 |
D. Any unused credit for a taxable period in which a credit is earned may be carried forward to subsequent years until the credit is exhausted.E. If the qualified recycling equipment is sold or exchanged before the entire credit is claimed, any unearned portion of the credit shall be canceled for all periods following the period of sale. If a qualified service contract is transferred by virtue of a sale of the qualified recycling equipment or otherwise before the entire credit is claimed, any unearned portion of the credit shall be canceled for all periods following the period of the transfer.La. Admin. Code tit. 33, § VII-10415
Promulgated by the Department of Environmental Quality, Office of the Secretary, LR 18:842 (August 1992), amended by the Office of the Secretary, Legal Affairs Division, LR 33:2633 (December 2007), Amended by the Office of the Secretary, Legal Affairs and Criminal Investigations Division, amended LR 45659 (5/1/2019), Repromulgated LR 46764 (6/1/2019).AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6005.