PDF document

- 1 -

R-540CRW (7/15)
Refundable Credits Reduction Worksheet Tax Year
(Acts 125 and 133) for IT-540, IT-540B and
IT-540B-nRA
2014 and Prior Tax Years

Social Security Number

CoLumn 1: CoLumn 2:
Amount prior to Act 125 Allowable Amount allowed
Line Description Reduction Portion under Act 125
1. Louisiana Citizens Insurance Credit 72%
Schedule F Reductions
2. Credit for Military Hunting & Fishing Licenses 72%
3. Prison Industry Enhancement (55F) 72%
4. Milk Producers (58F) 72%
5. Historic Residential (60F) 72%
6. Alternative Fuel – Fueling Station & Conversions (71F) 72%
Alternative Fuel – If taxpayer elects not See
7.
to determine cost for new car (71F) instructions

CoLumn 1: CoLumn 2:
PART II: If your Inventory Tax and/or Ad Valorem natural Gas
Inventory Tax Credit, Ad Valorem natural Gas
credit is $10,000 or more, complete Lines 1 through 10.
code 50F Credit, code 51F
1 Total amount of your credit before Act 133 reduction.
Enter the amount of any Inventory Tax or Ad Valorem
2 Natural Gas Credit Carryforward from tax
year _________ due to Act 133.
3 Total credit available for use. Add Lines 1 and 2.
Enter the amount of your total income and consumer
4
use tax.
Enter the amounts of refundable credits applied on your
5
return before this Schedule F.
5a Refundable School Readiness Credit
5b Refundable Child Care Credit
5c Earned Income Credit
5d Louisiana Citizens Insurance Credit
Total Refundable credits applied on your return before
5e
this schedule. Add Lines 5a through 5d.
Tax Liability before applying Inventory Tax Credit or Ad
6
Valorem Natural Gas Credit. (See instructions)
Amount of credit exceeding tax. Subtract Line 6 from
7
Line 3.
If Line 7 is greater than zero, multiply Line 7 by 75
8
percent. This is the refundable portion of your credit.
Add Line 6 and Line 8. Enter result here and on
9
Schedule F.
Subtract Line 8 from Line 7 to compute your credit carry
10
forward to next tax year.

- 2 -

Enlarge image

R-540CRWi (7/15)

Instructions to Refundable Credits Reduction
Worksheet Form R-540CRW for use with Forms
IT-540, IT-540B and IT-540B nRA

This worksheet has been created to reflect the reduction in certain income tax credits according to Act 125 and 133 of the 2015
Regular Session of the Louisiana Legislature. The reductions are applicable when claimed on any return filed on or after July
1, 2015, but before June 30, 2018 regardless of the taxable year the return relates. Please refer to Revenue Information Bulletins
15-019 and 15-021 for information regarding amended returns and 2014 returns filed on extension. This worksheet should be
used in completing your individual income tax return. Round all amounts to the nearest dollar.
All references to Schedule F also include Schedule F-nR for those filing IT-540-B and Schedule F-nRA for those filing IT-540B-
nRA unless otherwise stated.
In the box labeled “Tax Year”, enter the tax year for which you are 1. Multiply the amount by 72 percent (.72). The reduced cap is
completing this worksheet. $21,600. Enter the results in Column 2 and on Schedule F under
additional refundable credits with the identifying three-digit code.
Line 1 – Enter the amount of the Louisiana Citizens Property
Insurance assessment that was included in your homeowner’s Line 5 – Historic Residential- R.S. 47:297.6 allows a refundable
insurance premium in Column 1. Multiply the credit by 72 percent credit for the amount of eligible costs and expenses incurred
(.72). Enter the result in Column 2 and on your return. Below are during the rehabilitation of an owner-occupied residential or
the tax return types and line numbers to enter the credit on the owner-occupied mixed use structure located in a National
tax return. Register Historic District, a cultural district, a local historic
district, a Main Street District, or a downtown development
Tax Year Form IT-540 Form IT-540B IT-540B nRA district. Prior to the Act 125, the tax credit is limited to one credit
Schedule F Schedule F per rehabilitated structure and cannot exceed $18,500 per
2006 Line 15A structure. Enter credit amount in Column 1. If the credit is for the
line 9 line 9
rehabilitation of an owner-occupied residential structure, the credit
2007 Line 21 Line 21 Line 15A shall be eighteen and one-half of one percent of the eligible costs
2008-2014 Line 22 Line 22 Line 15A and expenses of a rehabilitation for which an application for credit
has been filed for the first time after July 1, 2011. If the credit is
Line 2- Military Hunting and Fishing Licenses R.S. 47:297.9 for the rehabilitation of a vacant and blighted owner- occupied
allows a credit for 100 percent of the amount paid by an active residential structure that is at least fifty years old, the credit is 36
or reserve servicemember, the spouse of an active or reserve percent of the eligible costs and expenses of a rehabilitation for
servicemember, or the dependent of such servicemember for which an application for credit has been filed for the first time after
obtaining a Louisiana noncommercial hunting and fishing license July 1, 2011. Calculate the reduced credit and enter amount in
was allowed. Calculate the original credit and enter the amount in Column 2 and on Schedule F under additional refundable credits
Column 1. Multiply the credit by 72 percent (.72). Enter the result with the identifying three-digit code.
in Column 2 and on Schedule F, Line 1.
Line 6 – Alternative Fuel - Fueling Station & Conversions -
Lines 3 through 7: The additional refundable credits that were R.S. 47:6035 allows a refundable credit for the purchase of, or
reduced by Act 125 are referenced individually by a three- conversion of a vehicle designed to run on an alternative fuel.
digit code. Enter the dollar amounts in the appropriate spaces Prior to Act 125, the credit is equal to 50 percent of the cost of the
in Column1 and 2 on Lines 3 through 7. Also enter the credit qualified clean-burning motor vehicle fuel property that has been
description, identifying code, and the dollar amount from Column purchased and installed. If the taxpayer is unable to determine the
2 in the appropriate spaces on Schedule F. exact cost attributable to the qualified clean-burning motor vehicle,
noTE: use only the codes referenced in the table on this please skip and go to Line 7. Calculate the credit and enter amount
worksheet. in Column 1. Under Act 125, the credit is equal to 36 percent of the
cost of the qualified clean-burning motor vehicle fuel property that
Line 3 – Prison Industry Enhancement (55F) - R.S. 47:6018 has been purchased and installed. Calculate the reduced credit
allows a refundable credit for the state sales and use tax paid and enter amount in Column 2 and on Schedule F under additional
by a taxpayer on purchases of specialty apparel items from a refundable credits with the identifying three-digit code.
private sector Prison Industry Enhancement (PIE) contractor. The
amount of the credit shall be equal to the state sales and use Line 7 – Conversion of Vehicle to Alternative Fuel - Prior to
tax paid by the purchaser on each case or other unit of apparel Act 125, if the taxpayer is unable to determine the exact cost
during the purchaser’s tax year as reflected on the books and attributable to the qualified clean-burning motor vehicle, a credit
records of the purchaser during his tax year. Enter the PIE credit equal to 10% of the cost of the motor vehicle registered in this
in Column 1. Multiply by 72 percent (.72). Enter the results in state or $3,000, whichever is less, may be claimed. Calculate
Column 2 and on Schedule F under additional refundable credits the credit and enter amount in Column 1. Under Act 125, if the
with the identifying three-digit code. taxpayer elects not to determine the exact cost, a credit equal
to 7.2 percent or $1,500, whichever is less, may be claimed.
Line 4 – milk Producers (58F) - R.S. 47:6032 allows a Calculate the reduced credit and enter amount in Column 2
refundable credit for a resident taxpayer engaged in the business and on Schedule F under additional refundable credits with the
of producing milk for sale. Prior to Act 125, the cap amount identifying three-digit code.
for the credit was $30,000. Enter the amount of the credit as
figured based on Revenue Information Bulletin 08-014 in Column

- 3 -

Enlarge image

R-540CRWi (7/15)

InVEnToRY TAX oR AD VALoREm nATuRAL GAS CREDIT- numbers to find your credit.
Only complete this portion if your credit based on R.S. 47:6006
before Act 133 reduction is equal to or greater than $10,000. Tax Year IT-540 IT- 540B IT-540B nRA
Line 1 – Calculate the inventory or ad valorem natural gas credit 2008-2014 Line 21 N/A N/A
based on R.S. 47:6006 before Act 133 reduction.
Line 5d – Enter the amount of your Louisiana Citizens credit from
Line 2 – If you have a credit carry forward from the prior tax year Line 1, Column 2 of this worksheet (Line 1 before Schedule F
due to Act 133 reduction, enter the tax year in the space provided reductions). If you are claiming both credits, enter the amount in
on Line 2 and enter the amount of the carry forward. This amount Column 1 only.
can be found on line 10 of the prior tax year’s Form R-540CRW.
Line 5e – Add Lines 5A through 5D in each Column.
Line 3 – Add lines 1 and 2 to compute the amount of credit
available for use. Line 6 – Subtract Line 5E from Line 4 to calculate your tax liability
before Inventory Tax Credit or Ad Valorem Natural Gas Credit. If
Line 4 – Enter amount of your total tax. If you are claiming both you are claiming both credits, enter the amount in Column 1 only.
credits, enter your total tax in Column 1 only. See table below for
tax periods and line numbers to find your tax liability. Line 7 – Subtract Line 6 from Line 3 and enter the result. This is
the amount of the credit that exceeds tax. If this amount is less
Tax Year IT-540 IT-540B IT-540B nRA than or equal to zero, enter the amount from Line 3 on Schedule
2004-2006 Line14 Line 14C Line 14 F under additional refundable credits with the identifying three-
digit code. If you are not claiming both credits, stop here; you are
2007-2014 Line 18 Line 19 Line 14 finished with the worksheet.
Line 5a – Enter the amount of your refundable school readiness If you are claiming both credits: If the amount in Column 1,
credit claimed on your tax return. If you are claiming both credits, Line 7 is greater than or equal to zero, your tax liability (Line 6)
enter the amount in Column 1 only. See table below for tax for the purpose of calculating Column 2 is zero. If the amount in
periods and line numbers to find your credit. Column 1, Line 7 is less than zero, subtract Line 3, Column 1,
from Line 6, Column 1, and enter the result on Line 6, Column
Tax Year IT-540 IT- 540B IT-540B nRA 2. This is your remaining tax liability (Line 6) for the purpose of
calculating Column 2.
2008-2014 Line 20 Line 21 N/A
Line 8 – If Line 7 is greater than zero, multiple Line 7 by 75
Line 5b – Enter the amount of your refundable child care credit percent. This is the refundable portion of your credit.
claimed on your tax return. If you are claiming both credits, enter Line 9 – Add Line 6 and Line 8. Enter the amount on Schedule F
the amount in Column 1 only. See table below for tax periods and under additional refundable credits with the identifying three digit
line numbers to find your credit. code.
Tax Year IT-540 IT- 540B IT-540B nRA Line 10 – Subtract Line 8 from Line 7. This amount is your
2004-2006 Line 15A Line 20 N/A carryforward of the disallowed inventory or ad valorem credit.
Please refer to Act 133 for more information.
2007-2014 Line 19 Line 20 N/A

Line 5c – Enter the amount of your earned income credit claimed
on your tax return. If you are claiming both credits, enter the
amount in Column 1 only. See table below for tax periods and line

PDF file checksum: 4197926552

(Plugin #1/9.12/13.0)