Have you noticed you don’t see “inventory reduction” sales regularly, like you used to? That’s because of Louisiana’s business inventory tax credit, put in place in the 1990s.
“It certainly has been no reason for companies to deplete their inventories at the end of the year,” state Sen. Robert Adley observes.
Businesses still do count their inventory, and pay local taxes on their stock on hand. But when they file their corporate income tax returns with the state, Louisiana reimburses the companies for every penny they paid in inventory tax—even if the amount exceeds the other state taxes the business owes.