Louisiana State Tax Credits

More ways to save your hard-earned money from the tax man!

Louisiana has some great Tax credits for you....

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap

 
Lousisiana

Louisiana Angel Investor Tax Credit (AITC)

Overview:
The Louisiana Angel Investor Tax Credit provides accredited investors with a 25–35% state income tax credit for making qualified investments in Louisiana Entrepreneurial Businesses (LEBs). The enhanced 35% credit applies to investments in Opportunity Zones, helping drive innovation and job creation across the state.

Who It’s For:
Accredited investors who want to support high-growth, Louisiana-based small businesses and receive a significant state tax incentive in return.

Four Key Highlights:

  1. Credit Value Up to 35%

    • Investors receive a 25% credit—or 35% if investing in an Opportunity Zone—on up to $720,000 per business annually.

  2. Strict Business Eligibility

    • The business must be headquartered in Louisiana, employ 50 or fewer people, and generate under $10M in sales or hold under $2M in net worth.

  3. Approved Investment Types Only

    • Equity, convertible debt, or qualified subordinated debt (with no repayment for 3 years and no asset security) are the only eligible investment formats.

  4. Annual & Lifetime Caps Apply

    • The program has a $7.2M yearly cap, a $1.44M lifetime cap per business, and will sunset on July 1, 2030—so early participation is key.

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Louisiana Inventory Tax Credit

Overview:
The Louisiana Inventory Tax Credit offers manufacturers, distributors, and retailers a credit against state income or franchise taxes for local ad valorem taxes paid on qualifying inventory. The credit’s refundability depends on the amount of taxes paid, with major changes coming for C-corporations in 2025 and a full phase-out by 2026.

Who It’s For:
Louisiana businesses—including corporations and individuals—that pay property taxes on inventory held for sale, production, or inclusion in manufacturing processes.

Four Key Highlights:

  1. Credit Tied to Inventory Property Tax

    • The credit applies to ad valorem taxes paid on inventory held for sale, production, or manufacturing purposes, including certain natural gas storage.

  2. Refundability Based on Tax Amounts

    • Under $500K: 100% refundable

    • $500K–$1M: 75% refundable, 25% carried forward

    • Over $1M: Partial refund, remainder carried forward (up to 10 years)

  3. Major Change for C-Corporations in 2025

    • Beginning January 1, 2025, C-corporations can no longer receive refunds—credits can only offset tax liability.

  4. Certain Inventory Types Are Excluded

    • Exclusions include leased items, oil in storage tanks pre-sale, and inventory used for over 18 months. Businesses must maintain detailed tax and inventory documentation.

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