R-10610-ITE: Schedule of Ad Valorem Tax Credit Claimed by ITEP Manufacturers for Ad Valorem Tax Paid on Inventory (2025)
Louisiana · Louisiana LDR · Used for tax years 2025
Louisiana Form R-10610-ITE is a schedule and worksheet for calculating the credit for ad valorem taxes paid on inventory or natural gas for a 2025 tax return. It records parish assessments, taxes paid, the credit claimed, and any credit exceeding tax liability.
Who files this form
Use this worksheet with a 2025 tax return to calculate the credit for ad valorem taxes paid on inventory or natural gas 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 manufacturer, distributor, or retailer taxed as a C corporation for federal income tax purposes, for credits earned from January 1, 2025, through June 30, 2026.
- A manufacturer, distributor, or retailer operating as a cooperative that files as a C corporation, for ad valorem tax payments made on or after January 1, 2025.
For these taxpayers, the credit is limited to tax liability, with carryforward provisions for unused credits.
What you'll need
Have the following information ready to complete the worksheet:
- Taxpayer name, SSN/LDR account number, and filing period.
- The Louisiana parish that issued each assessment, the assessment number, total assessment, and qualified inventory assessment.
- Total assessed tax paid, plus check numbers, dates, and amounts.
- Amounts paid on qualifying inventory or natural gas, including any qualifying short-term rental inventory.
- Your 2025 tax return, to find the adjusted tax liability used on Line 2.
A cooperative claiming the exception that allows it to earn credits for payments made on or after July 1, 2026, must submit a copy of Federal Form 1099-PATR with its return.
How to file
Complete the worksheet and attach it to the return for the filing period shown. The supplied text does not give a mailing address or e-filing instructions.
- Print or type your taxpayer information and assessment and payment details. For the eligible inventory credit, list the actual tax paid or use the ratio method shown on the form.
- Check the credit-type box: 500 for inventory or 502 for natural gas.
- On Line 1A, enter ad valorem taxes paid on inventory or natural gas as described in the line instructions. On Line 1B, enter the qualifying short-term rental portion. On Line 1C, enter the amount qualifying for the credit.
- Enter your adjusted tax liability on Line 2. For 2025, use IT-540 Line 22, IT-540B Line 23, IT-541 Line 15, IT-565 Schedule 6922 Line 9, or CIT-620 Line 9, as applicable.
- Subtract Line 2 from Line 1C to calculate Line 3. If the result is negative, enter zero.
If Line 3 is zero, report Line 1C on Schedule NRC-P3 (business) or Schedule J (individual), using the appropriate credit code. If Line 3 is greater than zero, report Line 2 on that schedule; Line 3 is the credit carryforward. C corporations claim the credit on Form CIT-620, Schedule NRC-P3, using Code 500 or 502.
Common mistakes
- Using this version for the wrong tax year. The form specifically says to use it for a 2025 tax return.
- Leaving out identifying information or the credit-type selection. The instructions call for the taxpayer's name, SSN/LDR account number, filing period, and the applicable credit-type box.
- Entering a negative amount on Line 3. The instructions say to enter zero if Line 1C minus Line 2 is less than zero.
- Claiming a refund for a C corporation's own excess credit. For taxable periods beginning on or after January 1, 2025, that credit can only offset corporation income tax liability; excess amounts may be carried forward. The text provides a separate rule for credits distributed by a partnership to a C corporation.
Questions people ask
Does this worksheet cover natural gas as well as inventory?
Yes. It covers ad valorem taxes paid on inventory and on natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage. Use Code 500 for inventory and Code 502 for natural gas.
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. The qualifying inventory provision covers goods that will subsequently or ultimately be sold by taxpayers classified under NAICS codes 532412 and 532310.
What happens if the credit exceeds my tax liability?
Line 3 shows the excess credit to carry forward. The instructions generally allow up to 10 years. Taxpayers prohibited from earning credits on payments made on or after July 1, 2026, receive an additional 10-year carryforward for existing credits, but not for credits whose carryforward period expired before January 1, 2025.
Can a C corporation receive a refundable credit distributed by a partnership?
Yes. The text says credits earned by a pass-through entity taxed as a partnership and distributed to a member or partner taxed as a C corporation are not subject to the refund prohibition for credits earned directly by C corporations. The recipient may claim the distributed credit as refundable or carry it forward under La. R.S. 47:6006(B).