TAX CREDITS: Establishes a tax credit for costs of developing carbon sequestration wells where carbon sequestration is subsequently prohibited by local ordinance (OR SEE FISC NOTE GF EX)

HB 491 creates a Louisiana income tax credit for businesses that incurred costs developing carbon sequestration wells (specifically for Class V well testing) before a local ordinance prohibited such projects after March 27, 2025. The credit covers documented expenses like drilling and geological assessments, up to $5 million per taxpayer, spread equally over five years. To qualify, businesses must apply within 180 days of the local ordinance's effective date, submitting proof of permits, costs, and the ordinance itself. The total annual credit amount is capped at $25 million, and unused credits can be carried forward for up to five years. This policy directly affects Louisiana taxpayers investing in carbon sequestration infrastructure blocked by local regulations.