Louisiana State R&D Tax Credits
Louisiana provides up to a 30% tax credit on qualified expenditures incurred in Louisiana with no cap and no minimum requirement.
The credit calculation is based on the application type:
- 30 percent for companies that employ up to 50 Louisiana residents
- 10 percent for companies that employ 50-99 employees, and
- 5 percent for companies with 100 or more employees
How to obtain the credit?
For taxpayers with fewer than 50 employees, a federal Form 6765, Credit for Increasing Research Activities, must be filed for the current tax year or a completed Verification Report. For the R&D tax credits to be awarded, a taxpayer must claim the expenditures within one year after Dec. 31 of the year in which the expenditures were incurred.
Taxpayers must submit a completed Research and Development application, pay a minimum $500 fee and provide additional information based on the type of application being submitted and specific fact pattern of the taxpayer.
LED processes the applications on a first in, first out basis. After the application is reviewed, notification of the decision is sent via email. If approved, businesses can file or amend their state income tax returns and claim the tax credits. The Louisiana Department of Revenue will issue the refund once all state liabilities have been resolved.
Refundable/Transferable – No*
Currently, the credit for research expenditures incurred is set to expire for tax periods beginning after December 31, 2021.
The carry forward period is 5 years.
Find out if you qualify for the R&D tax credit
States and the R&D Credit: