Research and Development Tax Credit

Eligibility The Tax Credit Incentive is open to companies who have incurred research and development expenditures in Louisiana and who meet certain requirements (where listed). Only research and development conducted in Louisiana will qualify for the Tax Credit Incentive. In order for credits to be awarded, a taxpayer must claim the expenditures within one year after December 31 of the year in which the expenditure was incurred. Ineligible Businesses The following businesses will be ineligible to participate in the Research and Development tax credit program, unless specifically invited by the Secretary of LED to: Professional services firms that do not have a pending or issued United States patent related to the qualified research expenditures claimed. Businesses primarily engaged in custom manufacturing and custom fabricating that do not have a pending or issued United States patent related to the qualified research expenditures claimed. Program Statutes & Rules: All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register. View the Research and Development Tax Credit Statutes View the Research and Development Tax Credit Rules Go to Part I, Chapter 29 Contact Us Eligibility Scenarios Qualifying wages for the Research and Development Tax Credit Program My research and development with a team of four spending 100% of their time on research and development — two were scientists, one was a lab supervisor and the other was the VP of Operations. Will the wages for these individuals qualify for the Research and Development Tax Credit Program? Not all will qualify. According to Section 41 (b)(2)(B) wages of individuals who are engaging in qualified research, directly supervising qualified research or directly supporting qualified research will be eligible. The term “direct supervision” means the immediate supervision (first-line management) of qualified research. “Direct supervision” does not include supervision by a higher-level manager to whom first-line managers report, even if that manager is a “qualified research scientist.” The Process 1. Complete the application online and submit the fee and additional required documentation for type of business either online or by mail. 2. LED staff reviews application. 3. Business notified of approval or denial and Louisiana Department of Revenue is notified. 4. If approved, business files or amends state income tax return and claims the tax credits. 1. Complete the application online and submit the fee and additional required documentation for type of business either online or by mail. 2. LED staff reviews application. 3. Business notified of approval or denial and Louisiana Department of Revenue is notified. 4. If approved, business files or amends state income tax return and claims the tax credits. Getting Started A company must submit the completed Research and Development application and fee. Based on your application type additional information must be provided: 1. 6765 – Increase in Louisiana Research and Development (50+ Employees) • Filed Federal Form 6765 for the current tax year and the three previous tax years • Please attach the Louisiana only qualified research expenses for the three previous years (if applicable) 2. Small Business Innovation Research Grant (SBIR/STTR) • SBIR/STTR grant • Listing of disbursements received (date, amount, grant) • Bank statements indicating distribution of funds 3. LQRE-6765 (Less than 50 employees) • Filed Federal Form 6765 for the current tax year and the three previous tax years • Please attach the Louisiana only qualified research expenses for the three previous years (if applicable) Application Processing Time: