Louisiana Dairy Producer Tax Credit

Dollar-for-dollar Louisiana state income tax credit for Louisiana milk (dairy) producers, created by Act 461 of the 2007 Louisiana Legislature. Triggered when the USDA Uniform Price drops below the announced production price in a quarter. Individual producers may receive credits ranging from $3,600 to $21,600 per year; total statewide credits are capped at $1.8 million per year. Per-producer amount depends on total claims against the $1.8M cap, milk production, milk prices, production costs, and number of qualifying quarters. Administered by LDAF with the LA Dept of Revenue, LSU AgCenter, and the Federal Milk Market Administrator.

Louisiana commercial milk (dairy) producers.

Form: a dollar-for-dollar state income tax credit, not a payment. LDAF: "Created by ACT 461 of the 2007 Louisiana Legislature, this income tax credit is a direct dollar-for-dollar reduction against dairy producers' income tax for the taxable year that is filed with the state."

Per-producer range: "Louisiana dairymen may be eligible to receive tax credits ranging from $3,600 to $21,600."

Statewide ceiling: "The total amount of the tax credit that may be given to Louisiana milk producers is limited to $1.8 million dollars per year." That is the program pool — your individual credit shrinks as more producers claim against it.

How your amount is set: "The amount of tax credit is based upon the total claims made to the $1.8 million dollar cap allotment, milk production during the year, milk prices, production costs, and the number of quarters in a year that the USDA Uniform Price drops below the announced production price." So the credit only triggers in quarters when the USDA Uniform Price falls below the announced production price, and the amount is not knowable in advance.

Who computes it: "Through the combined efforts of the Louisiana Department of Revenue, LSU AgCenter, Department of Health and Hospitals, and the Federal Milk Market Administrator for Federal Milk Order #7, the Louisiana Department of Agriculture and Forestry will then determine the amount of tax credit that will be administered to producers."

No match, fee, interest, or contract term applies. No carry-forward or refundability rule is published on the LDAF page.

Claim on the Louisiana state income tax return; LDAF determines the credit amount administered to producers. Contact LDAF Commodity Promotion and Research for details.