§6032. Tax credit for certain milk producers

A. A resident taxpayer engaged in the business of producing milk for sale shall be allowed a refundable tax credit based on the amount of milk produced and sold. The credit may be claimed against any Louisiana income tax and the corporation franchise tax. The credit shall be allowed when the USDA Uniform Price in Federal Order Number 7 drops below the announced production price any time during the calendar year.

B. The Department of Agriculture and Forestry shall promulgate regulations establishing the provisions of the announced production price, which must consider the following factors, including but not limited to:

(1) The average price of milk in the top five states where milk is imported to Louisiana.

(2) The average transportation cost of importing milk from those five states.

(3) The cost of production in Louisiana.

C. Each qualifying taxpayer is eligible for tax credits based on the production and sale of milk below the announced production price over a calendar year in accordance with the following schedule:

Amount of Milk Produced:                Amount of Tax Credit:

Up to 1,000,000 pounds                                 $ 3,600

1,000,001 to 1,500,000 pounds                      $ 7,200

1,500,001 to 2,000,000 pounds                      $10,800

2,000,001 to 2,500,000 pounds                      $14,400

2,500,001 to 3,000,000 pounds                      $18,000

3,000,001 pounds and above                          $21,600

D. The credit provided by this Section shall be earned on the last day of each calendar year and may be claimed against the income tax for the taxable year that includes the day on which the credit is earned or for the succeeding franchise tax year. The credit shall be prorated on a quarterly basis.

E. If no taxes are due, or the credit exceeds the tax liability of the taxpayer for the taxable year, the amount of the credit or excess over the tax liability shall be refunded to the taxpayer. The Louisiana Department of Health shall certify to the Department of Revenue, by January 31 of the following year, which milk producers have been permitted under Louisiana Administrative Code, Title 51, Public Health Sanitary Code, Part VII, Milk, Milk Products, and Manufactured Milk Products, and meet the requirements of the Grade A Pasteurized Milk Ordinance of the 2005 revision of the Food and Drug Administration. Any producer not certified by the Louisiana Department of Health as provided by this Section shall not be entitled to the credit provided for in this Section.

F. The credit allowed for each producer pursuant to this Section shall not exceed twenty-one thousand six hundred dollars per calendar year. The total aggregate amount of tax credits for all producers provided for under this Section shall be capped at one million eight hundred thousand dollars per calendar year.

G. The credit allowed pursuant to this Section shall be reviewed by the commissioner of the Department of Agriculture and Forestry after it has been in place for two taxable years.

H. Commencing no later than January 31, 2016, the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs shall review the credit authorized pursuant to the provisions of this Section to determine if the economic benefit provided by such credit outweighs the loss of revenue realized by the state as a result of awarding such credit. The House and Senate committees shall make a specific recommendation no later than March 1, 2017, to either continue the credit or to terminate the credit.

Acts 2007, No. 461, §1; Acts 2015, No. 125, §2, eff. July 1, 2015; Acts 2015, No. 357, §1, eff. June 29, 2015; Acts 2016, 1st Ex. Sess., No. 29, §2; Acts 2017, No. 400, §§1 and 4, eff. June 26, 2017.

NOTE: See Acts 2015, No. 125, §7, regarding applicability.

NOTE: See Acts 2016, 1st Ex. Sess., No. 29, §2, regarding effectiveness.