R-10610: Schedule of Ad Valorem Tax Credit Claimed by Manufacturers, Distributors, and Retailers for Ad Valorem Tax Paid on Inventory or Natural Gas (2024)
Louisiana · Louisiana LDR · Used for tax years 2024
Louisiana Form R-10610 is a schedule and worksheet for calculating the Inventory Tax Credit or Ad Valorem Natural Gas Credit for tax year 2024. It reports parish assessments, qualifying taxes paid, the credit claimed, and calculations of refundable and carryforward amounts.
Who files this form
Use this version of Form R-10610 for a 2024 tax return to calculate the Inventory Tax Credit (50F) or Ad Valorem Natural Gas Credit (51F).
The worksheet covers qualifying Louisiana local ad valorem taxes paid on:
- Inventory held by manufacturers, distributors, or retailers.
- Natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage.
Taxpayers included on the same consolidated federal income tax return must calculate the refundable portion on a combined basis, subject to the special rules in the instructions.
Manufacturers that claimed an Industrial Tax Exemption Program (ITEP) property tax exemption during the taxable year when the local inventory taxes were levied must use Form R-10610-ITE for the inventory credit. If they filed a consolidated federal return, each member of the group must complete a separate R-10610-ITE.
What you'll need
Have the following information available to complete the schedule and worksheet:
- Taxpayer name, SSN or LDR account number, and filing period.
- The Louisiana parish that issued each assessment, assessment number, total assessment, and qualified inventory assessment.
- Total assessed tax paid, qualified inventory credit claimed, and payment check number, date, and amount.
- Taxes paid on qualifying inventory or natural gas, including the amount paid on short-term rental inventory.
- Adjusted Louisiana tax liability from the applicable 2024 tax return, if required for your calculation.
- For a consolidated group, the LDR account number, or an individual's last four SSN digits, and qualifying taxes paid for each taxpayer listed.
- The formation or first Louisiana registration date for a business formed or first registered after April 15, 2016.
Attach additional worksheet pages as needed and include their totals in the Total Column on the first page.
How to file
Complete one worksheet for each credit type and attach a copy to the return of every taxpayer included on that worksheet.
If claiming both credits, calculate the Inventory Tax Credit first, then complete a separate worksheet for the Ad Valorem Natural Gas Credit.
Report each taxpayer's credit on Schedule I for individuals or Schedule RC-P4 for businesses, using the identifying three-digit code and the amount directed by the worksheet instructions.
The supplied text does not give a mailing address or e-filing procedure.
Common mistakes
- Using the wrong year's form: This version is for tax year 2024 returns.
- Combining both credits on one worksheet: Complete a separate worksheet for each credit type, with the Inventory Tax Credit calculated first.
- Leaving out required attachments: Attach a worksheet copy to each listed taxpayer's return.
- Omitting extra-page totals: Include totals from additional pages in the Total Column on the first page.
- Skipping the special-form rule for ITEP manufacturers: Follow the instructions requiring Form R-10610-ITE when that rule applies.
- Ignoring rounding instructions: Round Lines 9 and 11 to the nearest dollar and the Line 10 ratio to six decimal places.
Questions people ask
Must related businesses combine their taxes paid?
Taxpayers on the same consolidated federal income tax return must combine their inventory taxes paid to determine the refundable excess credit. Affiliated or related taxpayers outside a consolidated group are not required to combine their taxes paid for this purpose.
Are there special rules for newer businesses?
Yes. Businesses formed or first registered to do business in Louisiana after April 15, 2016 have different refundability limits. The general instructions require a separate R-10610 from the consolidated group, using Column 1, with “Yes” on Line 1A and the formation or registration date on Line 1B.
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.
Where do I report the credit carryforward?
Line 13 calculates the carryforward. Report it on next year's Schedule J for individuals or Schedule NRC-P3 for businesses. Use code 500 for the Inventory Tax Credit carryforward or code 502 for the Ad Valorem Natural Gas Credit carryforward.