Research & Development Tax Credit

To encourage research and development in Louisiana, taxpayers are offered a tax credit to be applied against state income or corporate franchise tax liability. If the amount of credit exceeds the amount of tax liability for the tax year, the excess credit may be carried forward as a credit against subsequent state income or corporate franchise tax liability for up to five years
The 2020 Louisiana Legislature Special Session adopted the following amendment to the rules for the Louisiana R&D program due to the Covid-19 impacted businesses. Senate Bill 4 passed into Act 13 signed by the governor effective July 1, 2020 extended the availability of credits for an additional four years to December 31, 2025.

Eligibility

• Any taxpayer who employs 50 or more Louisiana persons and claims for the taxable year a federal income tax credit under 26 U.S.C. §41(a) for increasing research activities
• Any taxpayer who employs fewer than 50 persons can also apply for credits without providing a federal tax return if other reporting criteria are met as determined by LED
• A taxpayer who receives a federal Small Business Innovation Research Grant
• Professional services firms, businesses primarily engaged in custom manufacturing and custom fabrication that do not have a pending or issued U.S. patent related to their research expenditures are ineligible to apply, unless specifically invited by the Secretary of LED

LOUISIANA ECONOMIC DEVELOPMENT
Shamelda Pete
Business Development Officer
Phone: (225) 342-5341
Email: spete@la.gov
Website: www.louisianaeconomicdevelopment.com

Kelly A, Raney
Manager, Business Incentives Services
Email: kelly.raney@la.gov
225 342-0411
Website: www.opportunitylouisiana.com