Poodlebrain...Thoughts on the legislative tax acts?

Not to mention the clusterfudge formerly known as solar credits.

Legislative vote to make the credit effective in the year the taxpayer files...not the year the panels are installed. Example: You install solar based upon the credits available today. You file taxes in 2016 for tax year 2015. Credits in year 2015 were 50%. Credits in year 2016 are 30%. You only get a 30% credit.

Sorry if that was roundabout. It's so Louisiana that it's difficult to type a sane explanation.

Just waiting for the right opportunity and I'm out. This + ACA has made the job of tax preparing a miserable one.

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I don't have a problem with the limitations they put on using prior year net operating losses to reduce current taxable income, nor do I have a problem with making certain credits nonrefundable. The tax benefits are not permanently lost they are just deferred.

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I agree with this generally, and as a tax advisor, I'm generally agnostic about tax laws. Tell me what the rules and regs are, and I'll find a way to use them to my client's advantage.

The only two things I really take issue with are 1) the 7/1 adoption date as I have a fair number of clients that wait on K-1s and really can't file before September, and I have my doubts as to whether LDR can handle these returns and 2) the film credits redemption issues, which hopefully will be fixed via regulation.

As far as them chopping off a bunch of credits and deductions, eh.

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One industry that will benefit from the changes is tax advisors

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Indeed... provided we can keep enough advisors around to do the work. Changes like what LA just did, just means less and less people are qualified to prepare their own tax returns.

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The only two things I really take issue with are 1) the 7/1 adoption date as I have a fair number of clients that wait on K-1s and really can't file before September,

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Same here. Returns that generally would have been completed over the next 3 months have all been rushed to meet the 7/1 adoption.

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From what I can tell, the changes to the inventory tax credit are going to sting a lot of businesses

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I mentioned this to our boss and he was like 'wut??'.

We are pretty inventory intense, with several millions of $$ on the premises.

What effect is this going to have on businesses, what is the % rate going to be? Are there any exemptions?

I know our CPA is on it now(I hope )

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due to the uncertainty around them, guessing its just best to have people just buy the historic credits.

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Yes, we have started doing that. But we have a bunch of clients who already bought film credits in anticipation of using them with their extended return.

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hello lawsuits

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Oh... I know... what will happen if all this stuff gets thrown out by the courts?

Makes tax compliance and planning so much fun... let me tell you....

there was a rep at one of the film credit agencies telling us that one of the changes was going to be had you had to buy the credits within the tax year you're going to use them. I haven't seen that anywhere else though, plus that would be pretty unreasonable given how you're going about enforcing this cap.

Agree, but I wonder how this will work? If you buy credits thinking you will use them, then turn them in, then the state denies them because the credit is reached, then what?

Until LDR issues some guidance on how this will work, I'd just stay away from buying film credits.

What the state should have done is just swallow the bullet on the already issued credits, and limit issuance of the new credits to 180 million a year. It would have taken a couple of years for the inventory of "old" credits to be used up, but after that, we would have a pretty logical system in place. However, that doesn't help next year's budget any... so this is the system we get.