Committee adopts department-requested cleanup to inventory tax-credit law
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Summary
Senate Bill 65, described by the Department of Revenue as a cleanup measure to clarify which taxpayers may claim the inventory tax credit after recent tax changes, was amended and reported favorable. The amendment clarified treatment for C corporations, cooperatives, S corporations, estates and trusts and adjusted date references.
The Senate Committee on Revenue and Fiscal Affairs on April 15 adopted an amendment and reported Senate Bill 65, a department-requested cleanup bill clarifying eligibility for the inventory tax credit after statutory changes made during the special session.
Luke Morris, representing the Department of Revenue, told the committee the special session had removed the franchise tax and made changes to the inventory tax credit effective July 1, 2026. The department sought clarifying language so that the statute clearly limits the credit for taxpayers taxed as C corporations, estates and trusts for property taxes paid on or after that July 1 date. The department also asked for exceptions to preserve the credit's flow-through treatment for agricultural cooperatives and S corporations that pass taxable income and credits to members or shareholders.
The committee considered and adopted amendment 480, which clarified dates and added exceptions for co-ops and flow-through entities. Senator Luna asked for statutory citations; Morris identified the relevant sections for estates/trusts and S corporations in the transcript. The committee then reported SB 65 as amended.
Why it matters: The amendment narrows and clarifies who may claim the inventory tax credit after a larger tax-code change; the transcript contains no committee roll-call vote but records the amendment adoption and the committee report.