TAX CREDITS: Authorizes a tax credit for certain employers of La. National Guard members and military reservists (EG -$5,000,000 GF RV See Note)

House Bill 186 authorizes a refundable Louisiana income tax credit for businesses that employ members of the Louisiana National Guard or U.S. military reserve components. Businesses can claim this credit for compensation paid to employees during inactive duty training or for a "reservist differential," which makes up the difference between an employee's civilian and military pay during active duty. The credit is capped at $5,000 per business and the total statewide credits are limited to $5 million annually, awarded on a first-come, first-served basis. If the credit exceeds a business's tax liability, they will receive a refund. This bill applies to tax periods starting January 1, 2026, and ends after December 31, 2031.