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R -10610 (1/21)
                                   Schedule of Ad Valorem Tax Credit Claimed by                 IMPORTANT: Use this form if filing a 2020 
                               Manufacturers, Distributors and Retailers for Ad                 tax return. See instructions.
                                   Valorem Tax Paid on Inventory or Natural Gas 
                                   Louisiana Revised Statute 47:6006

                                                                                                                                    PLEASE PRINT OR TYPE
Taxpayer Name

LDR Account ID

Filing Period

     Parish             Assessment Total      Inventory              Ratio       Total Assessed Qualified Inventory          Check  Check      Check 
Name of Louisiana       Number     Assessment Assessment             Inventory   Tax Paid       Tax Credit Claimed on        Number       Date Amount
Parish that issued the                        Qualified Inventory  Assessment/                  Current Year Return
assessment                                    held by manufacturers, Total                      List actual tax paid or 
                                              suppliers or retailers Assessment                 apply ratio 
                                                                     Use only if                method to determine eligible 
                                                                     using ratio                tax credit
                                                                     method to 
                                                                     determine 
                                                                     eligible  
                                                                     tax credit *

Total

* See RIB 06-036 for instructions and additional information. 

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R-10610 (1/21)
IMPORTANT: Use this form if filing a 2020
Schedule of Ad Valorem Tax Credit Claimed by tax return. See instructions.
Manufacturers, Distributors and Retailers for Ad
Valorem Tax Paid on Inventory or Natural Gas
Louisiana Revised Statute 47:6006

PLEASE PRINT OR TYPE
Taxpayer Name

SSN/LDR Account ID Filing Period

Check the box for the credit type this worksheet is used to calculate: ■ Inventory Tax Credit (50F) ■ Ad Valorem Natural Gas Credit (51F)

See instructions to complete Lines 1 through 13 below. Total Column Column 1 Column 2 Column 3 Column 4 Column 5

1A New business limitation
1B Date business formed or registered to do business after
April 15, 2016
2A Amount of ad valorem taxes paid

2B Amount of ad valorem taxes paid on short-term rentals

2C Amount of ad valorem taxes paid qualifying for the credit
3 If Line 2C of the Total Column is less than or equal to
$500,000, see instructions. Otherwise, go to Line 4. ■ Act 59 exception (See instructions).
4 Adjusted Louisiana Income Tax
5 Inventory Tax Credit - See instructions.
6 Tax Liability before applying the Inventory Tax Credit or Ad
Valorem Natural Gas Credit
7 Amount of the credit exceeding tax liability
8 Enter the amount from Line 7, Total Column, or $1,000,000,
whichever is less.
9 Multiply Line 8 by 75 percent. This is the refundable portion
of your credit for all taxpayers.
10 Divide Line 9 by Line 7. This is the ratio of the excess credit
that is refundable.
11 Refundable credit amount per taxpayer
12 Amount of credit to report on return
13 Credit carry forward amount per taxpayer

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R -10610i (1/21)

INSTRUCTIONS
All taxpayers that are included on the same consolidated federal income tax return are required to combine their inventory taxes paid in
order to determine the amount of the excess credit that is refundable. Taxpayers that are affiliated or related outside of a consolidated group
are not required to combine their taxes paid in order to determine the amount of the excess credit that is refundable.
GENERAL INSTRUCTIONS
1. This worksheet was designed to assist taxpayers in calculating the credit and provide the necessary computation to LDR. If you filed
a consolidated federal income tax return, you must calculate the refundable portion of either the Inventory Tax Credit (50F) or the Ad
Valorem Natural Gas Credit (51F) on a combined basis. You will need to complete one worksheet per credit type and attach a copy
of the worksheet to the return of each taxpayer, whether an entity or person, included on the worksheet.
2. Enter the Taxpayer’s name, SSN/LDR Account ID and filing period for the return to which this worksheet is attached in the space
provided. Check the box for the credit type you are calculating on this worksheet. If you need to calculate both credit types, you must
first complete this worksheet for the Inventory Tax Credit (50F) and then complete a separate worksheet for the Ad Valorem Natural
Gas Credit (51F).
3. Columns are provided on Form R-10610 to report each taxpayer in the consolidated group separately. Starting in Column 1, enter the
LDR account ID, or for an individual, the last four digits of their SSN, of any taxpayer included in the federal consolidate return AND
paid ad valorem taxes qualifying for the credit in each column. Attach additional pages as needed and include the total(s) of each
additional page in the Total Column on the first page.
4. If you are a manufacturer who has claimed the property tax exemption under the Industrial Tax Exemption program (ITEP) during
the taxable year in which the local inventory taxes were levied, your credit is limited to tax and the excess can be carried forward not
to exceed five years. If you filed a consolidated federal income tax return, the credit of all members of the consolidated group is limited
to tax and the excess can be carried forward not to exceed five years. If this applies to you, each member of the consolidated group
will need to complete a separate Form R-10610-ITE to calculate the credit for ad valorem taxes paid on the inventory.
5. For businesses formed or first registered to do business in Louisiana after April 15, 2016, a different set of limitations on refundability
apply and your credit will be calculated separately from the consolidated group.
If this applies to you, you will need to complete Form R-10610 separate from the consolidated group to calculate your credit under
“Column 1”. Enter “Yes” on Line 1A, Column 1, the date the business was formed or first registered to do business in Louisiana on
Line 1B, Total Column, and go to Line 2A.
6. This form should be used for any returns filed for tax year 2020.
7. New for the 2020 tax year:
a. Act 56 of the 2020 Second Extraordinary Legislative Session allows taxpayers who make payment of ad valorem taxes after
December 31, 2020, and before April 16, 2021, to elect to treat these payments as having been made on December 31, 2020,
for purposes of the credit. Taxpayers making this election must submit a schedule showing the ad valorem tax payments, the
actual payment date of each payment and a statement that they elect these taxes to be treated as paid on December 31, 2020.
b. Act 59 of the 2020 Second Extraordinary Legislative Session provides that for the 2020 tax year only, taxpayers, including
members included in a consolidated federal tax return that are treated as one taxpayer, who employed a minimum of 100
full-time employees at each location in the state for whom withholding tax was remitted to LDR for at least one month within
each of the first three quarters of calendar year 2020 and the total amount eligible for the credit is less than or equal to $1
million, 100 percent of any excess credit is refundable. Act 59 does not apply to any manufacturer who claimed the property
tax exemption under ITEP during the same year the inventory taxes were paid. If you qualify under this provision, follow the
specific instructions on Line 3 for when the amount on Line 2C, Total Column, is less than or equal to $500,000. Also, check
the box on Line 3 and attach a schedule that includes a list of all locations within the state along with the LDR account number
the withholding tax is paid under and for each full-time employee, list their name, address, last four digits of their Social
Security Number, their work location, and the amount of Louisiana withholding tax remitted on their behalf for each month
from January 2020 through September 2020.
c. For taxable years ending AFTER December 31, 2020: if you have an eligible carryover amount, your carryover period has
increased from five (5) years to 10 years as provided by Act 50 of 2020 Second Extraordinary Legislative Session effective
January 1, 2021.

SPECIFIC LINE ITEM INSTRUCTIONS
1A. Each business that was formed or first registered to do business in Louisiana after April 15, 2016 should enter “Yes” on Line 1A.
1B. Businesses that answered “yes” on Line 1A enter the date the business was formed or first registered to do business in Louisiana on
Line 1B in the applicable column. Otherwise leave the space blank.
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R -10610i (1/21)

2A. For each taxpayer listed starting in Column 1, enter the amount of ad valorem taxes paid to local subdivisions in Louisiana on
inventory held by manufacturers, distributors, retailers OR natural gas held, used, or consumed in providing natural gas storage
services or operating natural gas storage.
2B. For each taxpayer listed starting in Column 1, enter the amount of Line 2A that is the ad valorem taxes paid to local subdivisions in
Louisiana on inventory held by manufacturers, distributors, and retailers that is available for or subject to a short-term rental that will
subsequently or ultimately be sold by the retailer that will be included on Line 2C.
For the purpose of this credit, inventory is defined in R.S. 47:6006 as items of tangible personal property that are held for sale in the
ordinary course of business, in the process of production for subsequent sale, or are to physically become a part of the production
of such goods. The definition contains a listing of specific items that are included and not included in inventory. In addition to items
that are clearly included by the definition, the following items are included in inventory: used goods or trade-in merchandise; by-
products of a manufacturer; raw materials and supplies that will be consumed in the Louisiana manufacturing process; and goods
that are available for short-term rental that will subsequently or ultimately be sold by taxpayers classified under code numbers 532412
and 532310 of the North American Industry Classification System. A “short-term rental” is defined as a rental of an item of tangible
personal property for a period of less than 365 days, for an undefined period, or under an open-ended agreement.
Not included in inventory unless otherwise stated are: oil stored in tanks held by a producer prior to the first sale of the oil; items that
have been leased by the taxpayer; items that the taxpayer has depreciated for federal income tax purposes; items that have been
used by the taxpayer and have been owned for more than eighteen months; and certain items stored in the state for use in interstate
commerce.
2C. For each taxpayer listed starting in Column 1, enter the amount of ad valorem taxes paid to local subdivisions in Louisiana on
inventory held by manufacturers, distributors, retailers OR natural gas held, used, or consumed in providing natural gas storage
services or operating natural gas storage reported on Line 2A that meets the definition of inventory under R.S. 47:6006. Enter the
total of all columns in the “Total Column”.
3. If the amount on Line 2C, Total Column, is greater than $500,000, go to Line 4.
If the amount on Line 2C, Total Column, is less than or equal to $500,000, your entire credit (Line 2C) will be used to offset tax and
any excess will be refunded. For each taxpayer listed, enter the amount from Line 2C of their column on Schedule I (Individual) or
Schedule RC-P4 (Business) with the identifying three-digit code.
Special instructions for any taxpayer listed with “Yes” on Line 1:
If Line 2C is less than $10,000, your credit (Line 2C) will be used to offset tax and any excess will be refunded. Enter the amount
from Line 2C on Schedule I or Schedule RC-P4 with the identifying three-digit code. However, the taxpayer must be included in the
remaining calculations to determine the refundability for the group.
If Line 2C is equal to or greater than $10,000 but less than $500,000, your credit (Line 2C) will be used to offset tax and 75 percent
of the excess will be refunded. Complete the rest of the worksheet using just the column for this taxpayer and the “Total Column”. The
other columns will be blank for Lines 4 through 7, 11 and 12.
Stop here; you are finished with the worksheet.
4. For each taxpayer listed starting in Column 1, enter the amount of your adjusted tax liability from your tax return. See chart below for
line numbers. Enter the total of all columns in the “Total Column”.

Tax Year IT-540 IT-540B IT-540BNRA IT-541 R-6922 CIFT-620
2020 Line 22 Line 22 Line 19 Line 17 Line 9 Line 15

5. Complete this line only if both credits are claimed and after calculating the Inventory Tax Credit. For each taxpayer listed starting in
Column 1, enter the Inventory Tax Credit amount claimed on Schedule I or Schedule RC-P4. Enter the total of all columns in the “Total
Column”.
6. Tax Liability before applying the Inventory Tax Credit or Ad Valorem Natural Gas Credit. For each taxpayer listed starting in Column
1, subtract Line 5 from Line 4. If less than zero, enter zero. Enter the total of all columns in the “Total Column”.
7. Amount of the credit exceeding tax liability. For each taxpayer listed starting in Column 1, subtract Line 6 from Line 2C. If less than
zero, enter zero. Enter the total of all columns in the “Total Column”.
If Line 7, Total Column, is equal to zero, your entire credit on Line 2C will be used to offset tax. For each taxpayer listed starting in
Column 1, enter the amount from Line 2C on Schedule I or Schedule RC-P4 with the identifying three-digit code. Stop here; you are
finished with the worksheet.

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R -10610i (1/21)

8. In the Total Column, enter the amount from Line 7, Total Column, or $1,000,000, whichever is less.
9. Multiply Line 8, Total Column, by 75 percent, round to the nearest dollar, and enter the result in the Total Column. This is the
refundable portion of your credit for all taxpayers.
10. Divide Line 9, Total Column, by Line 7, Total Column, round to six places after the decimal, and enter the ratio in the Total Column.
This is the ratio of the excess credit that is refundable.
11. For each taxpayer listed starting in Column 1, multiply Line 7 by the ratio on Line 10, Total Column, and round to the nearest dollar.
Enter the total of all columns in the “Total Column”. This amount should equal the amount on Line 9, Total Column, except for minor
rounding differences.
12. For each taxpayer listed starting in Column 1, if Line 7 is greater than zero, add Lines 6 and 11. Otherwise, enter the amount from
Line 2C. For each taxpayer, enter the amount from Line 12 on Schedule I or Schedule RC-P4 with the identifying three-digit code.
13. For each taxpayer listed starting in Column 1, subtract Line 11 from Line 7. Enter the total of all columns in the “Total Column”. This
amount is your credit carry forward. This amount should be reported on next year’s return, on Schedule J (Individual) or Schedule
NRC-P3 (Business) with the identifying three-digit code listed below.

Inventory Tax Credit Carried Forward 218
Ad Valorem Natural Gas Credit Carried Forward 219

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