TAX CREDITS: Authorizes income tax credits for businesses within certain manufacturing industries (OR DECREASE GF RV See Note)

HB 598 creates a Louisiana income tax credit for manufacturers purchasing qualifying equipment, directly affecting businesses in motor vehicle, aerospace, and medical equipment manufacturing (classified under specific NAICS codes). The credit equals 0.5% to 2.5% of the equipment's basis, depending on its IRS depreciation schedule (3- to 15+ year property), with a $10 million annual cap per business. Unused credits can be carried forward for up to 10 years, but credits must be recaptured if equipment is sold, moved out of state, or if the business claims other state tax benefits for the same activity. The bill takes effect for taxable years beginning January 1, 2026.