R-10610: Schedule of Ad Valorem Tax Credit Claimed by Manufacturers, Distributors, and Retailers for Ad Valorem Tax Paid on Inventory or Natural Gas (2025)
Louisiana · Louisiana LDR · Used for tax years 2025
Louisiana Form R-10610 is a schedule and worksheet for calculating the Inventory Tax Credit or Ad Valorem Natural Gas Credit for tax year 2025. It reports assessments, qualifying ad valorem taxes paid, the credit claimed, and any refundable or carryforward amounts.
Who files this form
Use this version of R-10610 for a 2025 tax return to calculate the Inventory Tax Credit (50F) or Ad Valorem Natural Gas Credit (51F). It covers qualifying Louisiana ad valorem taxes paid on inventory held by manufacturers, distributors, and retailers, or on natural gas held, used, or consumed in providing or operating natural gas storage services.
- Consolidated federal filers: Taxpayers included on the same consolidated federal income tax return must combine their inventory taxes paid to determine the refundable excess credit. Attach a copy of the worksheet to each included taxpayer’s return.
- Related taxpayers outside a consolidated group: You are not required to combine taxes paid for this calculation.
- Businesses formed or first registered in Louisiana after April 15, 2016: Complete a separate R-10610 from the consolidated group. Different refund limits apply.
- Manufacturers claiming an Industrial Tax Exemption Program (ITEP) property tax exemption: If the exemption was claimed during the taxable year when the local inventory taxes were levied, use R-10610-ITE to calculate the inventory credit. If you filed a consolidated federal return, each group member 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/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 check number, date, and amount.
- Ad valorem taxes paid, including amounts paid on short-term rental inventory and amounts qualifying for the credit.
- The date the business was formed or first registered in Louisiana, if after April 15, 2016.
- Adjusted Louisiana income tax liability from the tax return, if the worksheet requires it.
- The Inventory Tax Credit already calculated, if you are also calculating the Ad Valorem Natural Gas Credit.
For a consolidated group, have each qualifying taxpayer’s LDR account number or, for an individual, the last four digits of their SSN, along with their separate tax amounts.
How to file
Print or type your entries. Enter the taxpayer’s identifying information and filing period, and check the box for the credit being calculated.
- Complete one worksheet per credit type. If claiming both credits, calculate the Inventory Tax Credit first, then complete a separate worksheet for the Ad Valorem Natural Gas Credit.
- For a consolidated group, report each taxpayer who paid qualifying taxes in a separate column. Attach extra pages as needed and include their totals in the Total Column on the first page.
- Follow the worksheet instructions to calculate the credit. Report the applicable credit amount on Schedule I for individuals or Schedule RC-P4 for businesses, using the identifying three-digit code.
- Attach a copy of the worksheet to the return of every taxpayer included on it.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Using the wrong year’s form: The form specifically says to use this version for a 2025 tax return.
- Combining both credit types on one worksheet: The instructions require separate worksheets, with the Inventory Tax Credit calculated first.
- Skipping the consolidated-group calculation: Taxpayers on the same consolidated federal return must calculate the refundable portion on a combined basis, subject to the separate-form rules in the instructions.
- Forgetting worksheet copies or extra-page totals: Attach a copy to each included taxpayer’s return and include additional-page totals in the first page’s Total Column.
- Overlooking special rules: Businesses formed or first registered in Louisiana after April 15, 2016 must calculate separately from the consolidated group. Manufacturers covered by the stated ITEP rule must use R-10610-ITE.
Questions people ask
Can I use one worksheet for both credits?
No. Complete the Inventory Tax Credit worksheet first, then a separate worksheet for the Ad Valorem Natural Gas Credit.
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.
Does all business property count as inventory?
No. Unless otherwise stated, excluded items include property leased by the taxpayer, property depreciated for federal income tax purposes, and property used by the taxpayer and owned for more than eighteen months. The instructions also list other exclusions.
Where do I report a credit carryforward?
Report the Line 13 amount 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.