State R&D Tax Credits

State R&D Tax Credits


Credit Name: §6015. Research and Development Tax Credit

Expiration Date: 12/31/2013

Does it apply to C corps and pass-through entities?: Yes

Credit Carry forward: May be carried forward up to 20 years or sold (with restrictions)

Description: There are 3 calculation methods according:

  • 500+ LA employees: 8% of the LA apportioned share of the taxpayer’s expenditures.
  • Up to 500 LA employees: 20% of the LA apportioned share of the taxpayer’s expenditures.
  • On the federal ASC: 25% of the LA apportioned ASC Credit.

Lastly, a taxpayer who receives a federal Small Business Innovation Research Grant shall be allowed a refundable tax credit in an amount equal to 40% of the award received during the tax year.

The LA apportioned share of a taxpayer’s expenditures is the excess of the taxpayer’s qualified research expenses for the taxable year over the base amount (federal QREs and Base amount), multiplied by the ratio of the LA qualified research expenses to the federal QREs for the taxable year.

Other Notes: Taxpayers seeking the credit shall apply to the Department of Economic Development (not Revenue). The application shall contain:

  • Application fee: $250
  • 50+ LA residents employed: the federal income tax return and supporting documentation
  • Less than 50: supporting documentation for a taxpayer
  • SBIR Grant: supporting documentation for the federal SBIR Grant.
  • Total QREs and LA QREs
  • The total number of LA residents employed and the number of those directly engaged in R&D.
  • The average wages of the LA resident employees directly and not directly engaged in R&D
  • The average value of benefits received by all Louisiana resident employees.
  • The cost of health insurance coverage offered to all LA resident employees.
  • Any other information required by the Department of Economic Development.
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