R-10610-ITE: Schedule of Ad Valorem Tax Credit Claimed by ITEP Manufacturers for Ad Valorem Tax Paid on Inventory (2024)

Who files this form

Use this worksheet for a 2024 tax return if you are:

• A manufacturer that claimed an Industrial Tax Exemption Program (ITEP) property tax exemption during the taxable year in which the local inventory taxes were levied.
• A member of a consolidated federal income tax return that includes a manufacturer that claimed the ITEP property tax exemption.

For these taxpayers, the credit is limited to tax liability. Any excess can be carried forward for no more than 10 years.

What you'll need

Have the following information available to complete the schedule and worksheet:

• Taxpayer name, SSN/LDR account number, and filing period, as requested on each page.
• Assessment details for each Louisiana parish: parish name, assessment number, total assessment, and qualified inventory assessment.
• Tax payment details: total assessed tax paid, qualified inventory tax credit claimed, check number, check date, and check amount.
• Amounts of ad valorem taxes paid, including taxes on qualifying short-term rental inventory.
• Your 2024 tax return, to find the adjusted tax liability used on Line 2.

If you use the ratio method, you will need the inventory assessment divided by the total assessment.

How to file

The instructions describe this worksheet as an attachment to your tax return. They do not provide a mailing address or e-filing directions.

1. Print or type your taxpayer information and filing period. Complete the parish assessment and payment schedule.
2. Check the credit type: Inventory Tax Credit (500) or Ad Valorem Natural Gas Credit (502).
3. On Line 1A, enter the taxes paid on the inventory or natural gas described in the instructions. On Line 1B, enter the portion paid on short-term rental inventory described in the instructions. On Line 1C, enter the amount qualifying for the credit.
4. On Line 2, enter your adjusted tax liability. For 2024, use IT-540 Line 21; IT-540B Line 22; IT-541 Line 15; IT-565 Schedule 6922, Line 9; or CIFT-620 Line 15.
5. On Line 3, subtract Line 2 from Line 1C. If the result is less than zero, enter zero.

If Line 3 is zero, enter Line 1C on Schedule NRC-P3 (Business) or Schedule J (Individual). If Line 3 is greater than zero, it is your credit carryforward, and you enter Line 2 on the applicable schedule. Use credit code 500 for inventory or 502 for natural gas.

Common mistakes

• Using this version for another tax year. The form specifically says to use it for a 2024 tax return.
• Not printing or typing entries. The form asks you to print or type.
• Using the ratio column when you are not using the ratio method. The form says to use that column only when the ratio method determines the eligible credit.

Questions people ask

Can I use a credit that is larger than my tax liability?

The credit for taxpayers covered by this worksheet is limited to tax liability. The excess can be carried forward for no more than 10 years.

Must members of a consolidated federal return combine their inventory taxes paid?

Yes. The instructions require taxpayers on the same consolidated federal income tax return to combine inventory taxes paid when determining the refundable excess credit. Affiliated or related taxpayers outside a consolidated group do not have to combine their taxes for that purpose. The instructions separately limit the credit for taxpayers covered by this ITEP worksheet to tax liability, with excess carried forward.

What counts as a short-term rental?

The instructions define it as a rental of tangible personal property for less than 365 days, for an undefined period, or under an open-ended agreement.

Can this worksheet calculate the natural gas credit?

Yes. It includes a box for Ad Valorem Natural Gas Credit (502). Line 1A covers taxes paid on natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage.

Official sources

• https://dam.ldr.la.gov/taxforms/10610-ITE-1-25-F.pdf