DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of
the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of
the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Thibaut HB No. 563
Abstract: Revises various provisions of the research and development tax credit, including
administrative provisions governing applications by businesses with less than 50
employees and eligibility for the credit for businesses which engage in custom
manufacturing or fabricating.
Present law provides for research and development income tax credits for taxpayers (businesses)
who employ a certain number of people and who are eligible for federal tax credits for certain
qualified research and development expenditures. There is an application process through which
a business submits documents to the Dept. of Economic Development (department).
Proposed law retains present law and requires that businesses seeking the tax credit provide
certain federal income tax information as may be requested by the department.
Proposed law authorizes eligibility for businesses with less than 50 employees if the business can
provide to the department a report by an independent certified public accountant relative to the
taxpayer's expenditures qualifying for federal research and development tax credits and other
information.
Proposed law further provides that unless the business has a U.S. patent issued or pending which
is directly related to research expenditures for which the tax credit is sought, professional
services firms and businesses primarily engaged in custom manufacturing and custom fabricating
are not eligible for the tax credit.
Proposed law requires the department to perform a detailed examination of at least 10% of the
tax credit applications, including a review and verification of documents to support qualified
research expenditures.
Proposed law provides that the applicant shall bear the burden of proving that its research
activities meet federal guidelines.
Proposed law provides that the department shall disallow tax credits not supported by
documentation and may recover, recapture, or offset tax credits which had been previously
issued.
Effective on July 1, 2013. (Amends R.S. 47:6015(B), (C)(2)(c), (G), (H), and (I); Adds R.S. 47:6015(J))
Summary of Amendments Adopted by House
House Floor Amendments to the engrossed bill.
1. Added exceptions in the application process for businesses employing less than 50.
2. Added provisions regarding the report required from a certified public accountant
relative to the taxpayer's expenditures qualifying for federal income tax credits.
3. Added provision allowing eligibility for professional services firms and businesses
engaged primarily in custom manufacturing and fabrication if those businesses have a
U.S. patent issued or pending which is directly related to research expenditures for
which the tax credit is sought.