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LA HB491
Bill
Status
4/4/2025
Primary Sponsor
Charles Owen
Click for details
AI Summary
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Creates a Louisiana income tax credit for taxpayers who incur costs on Class V carbon sequestration well testing but are prevented from completing a Class VI well due to a local ordinance enacted after March 27, 2025
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Credit equals total eligible costs (drilling, equipment, labor, geological assessments) up to $5 million per taxpayer, allocated in equal portions over five consecutive tax years
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Total credits capped at $25 million per taxable year, distributed on a first-come, first-served basis with pro rata allocation if demand exceeds the cap
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Taxpayers must apply to the Department of Revenue within 180 days of a local ordinance prohibiting carbon sequestration, with DOR required to approve or deny within 90 days
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Unused credits may be carried forward up to five years; no credits may be earned after December 31, 2031; effective January 1, 2026
Legislative Description
Establishes a tax credit for costs of developing carbon sequestration wells where carbon sequestration is subsequently prohibited by local ordinance (OR SEE FISC NOTE GF EX)
TAX CREDITS
Last Action
Read by title, under the rules, referred to the Committee on Ways and Means.
4/14/2025