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ACT No. 257
Regular Session, 2013
HOUSE BILL NO. 563
BY REPRESENTATIVE THIBAUT
AN ACT1
To amend and reenact R.S. 47:6015(B), (C)(2)(c), (G), (H), and (I) and to enact R.S.2
47:6015(J), relative to the research and development tax credit; to provide for3
eligibility for the credit; to provide with respect to administration of the credit; to4
provide for the examination of certain records; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:6015(B), (C)(2)(c), (G), (H), and (I) are hereby amended and7
reenacted and R.S. 47:6015(J) is hereby enacted to read as follows: 8
§6015. Research and development tax credit9
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B.(1) Any taxpayer who employs fifty or more than fifty persons and claims11
for the taxable year a federal income tax credit under 26 U.S.C. §41(a) for increasing12
research activities shall be allowed a refundable tax credit to be applied against13
income and corporation franchise taxes due.14
(2) Any taxpayer who employs up to fifty less than fifty persons and incurs15
qualified research expenses as defined in claims for the taxable year a federal income16
tax credit under 26 U.S.C.§41(ba), for the taxable year, or meets the requirements of17
Subparagraph (3)(i) of this Subsection, shall be allowed a refundable tax credit to be18
applied against income and corporation franchise taxes due.19
(3) Each taxpayer seeking the credits authorized in this Section shall apply20
to the Department of Economic Development for the credits. The taxpayer shall21
remit an application fee of two hundred fifty dollars with the application. The22
application shall include all of the following:23 ENROLLEDHB NO. 563
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(a) In cases where the taxpayer employs more than fifty persons, a A federal1
income tax return and supporting documentation that shows the amount of the2
federal research credit for the same taxable year. The supporting documentation for3
a taxpayer who employs up to fifty persons shall show the amount of the qualified4
research expenses for the same taxable year. If claiming the credit under Subsection5
D of this Section, the taxpaye r shall also remit supporting documentation for the6
federal Small Business Innovation Research Grant.7
(b) The total amount of qualified research expenses and the qualified8
research expenses in this state.9
(c) The total number of persons employed in Louisiana by the taxpayer and10
the number of those persons employed in Louisiana directly engaged in research and11
development.12
(d) The average wages of the persons employed in Louisiana not directly13
engaged in research and development and the average wages of the persons14
employed in Louisiana directly engaged in research and development.15
(e) The average value of benefits received by all persons employed in16
Louisiana.17
(f) The cost of health insurance coverage offered to all persons employed in18
Louisiana.19
(g) At the department's request, the taxpayer shall provide federal income tax20
information related to the research and development credit. This information shall21
include but shall not be limited to IRS forms 8821 and 4506.22
(h) Any other information required by the Department of Economic23
Development.24
(i) A taxpayer who employs less than fifty employees may apply for credits25
without providing a federal income tax return as required by Subparagraph (a) of this26
Paragraph if all of the following criteria are met:27
(i) Unless waived by the secretary of the department, the taxpayer provides28
the department with a report from a certified public accountant authorized to practice29
in the state of Louisiana. The report shall be rendered based upon procedures and30 ENROLLEDHB NO. 563
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regulations developed by the department in accordance with the Administrative1
Procedure Act.2
(ii) The taxpayer provides all supporting documentation required by the3
department to show the amount of qualified research expenses for such taxable year.4
(4) The Department of Economic Development shall approve or disapprove5
each application. No credits shall be granted to a taxpayer under this Section unless6
the credit is approved by the Department of Economic Development.7
(5) The following types of businesses that do not have a pending or issued8
United States patent directly related to the qualified research expenditures claimed9
under this Section are ineligible to apply for or receive benefits under this Section,10
unless specifically invited by the secretary of the department to do so:11
(a) Professional services firms as defined by departmental rule.12
(b) Businesses primarily engaged in custom manufacturing and custom13
fabricating as defined by departmental rule.14
C.15
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(2) The amount of the credit authorized in this Section shall be equal to17
either:18
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(c) Forty percent of the Louisiana qualified research expenses for the taxable20
year, if the taxpayer is an entity that employs fewer less than fifty persons.21
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G.(1) Each year, prior to the issuance of credits, the department shall23
perform a detailed examination of at least ten percent of all applications received.24
The department shall select applications for examination based on one or more of the25
following: a random sampling of applications, the applicant's business sector, and26
other selection criteria as determined by the department.27
(2) If a taxpayer's application is selected for examination, the taxpayer shall28
submit all supporting documentation required by the department. The department29 ENROLLEDHB NO. 563
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shall use this evidence to verify that the amount of the qualified research expenses1
incurred in Louisiana for the taxable year support the corresponding tax credit.2
(3) Upon examination, the department will disallow any credits that are not3
substantiated by supporting documentation to include Internal Revenue Service4
documents.5
(4) The applicant bears the burden of proving that its activities meet the6
definition of qualified research provided in 26 U.S.C. §41(d).7
(5) Nothing in this Subsection shall preclude the department from examining8
a taxpayer's application for research and development credits after the issuance of9
credits. Credits disallowed following an examination conducted after the issuance10
of credits will be subject to recovery, recapture, or offset.11
H.(1) Recovery of credits by Department of Revenue. Credits granted under12
this Section, but later disallowed in whole or in part, may be recovered by the13
secretary of the Department of Revenue from the taxpayer applicant through any14
collection remedy authorized by R.S. 47:1561 that is initiated within three years from15
December thirty-first of the year in which the credit was originally granted. The16
only interest that may be assessed and collected on these recovered credits is interest17
at a rate three percentage points above the rate provided in R.S. 9:3500(B)(1), which18
shall be computed from the original due date of the return on which the disallowed19
credit was taken.20
(2) The provisions of this Subsection are in addition to and shall not limit the21
authority of the secretary of the Department of Revenue to assess or to collect under22
any other provision of law. This includes the disallowance of any disallowed credit23
claimed by a taxpayer who received the credit through purchase or through a24
distribution by an entity not taxed as a corporation.25
H. I. A taxpayer shall not receive any other incentive administered by the26
Department of Economic Development for any expenditures for which the taxpayer27
has received a credit pursuant to this Section.28 ENROLLEDHB NO. 563
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I. J. No credit shall be allowed pursuant to this Section for research1
expenditures incurred or Small Business Innovation Research Grant funds received2
after December 31, 2019.3
Section 2. This Act shall be applicable to tax years beginning on or after January 1,4
2013. This Act shall become effective on July 1, 2013; if vetoed by the governor and5
subsequently approved by the legislature, this Act shall become effective on July 1, 2013,6
or on the day following such approval by the legislature, whichever is later.7
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: