Louisiana House Bill HB563

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13
• Report Pass: 5/6/13
• Engrossed: 5/15/13
• Refer: 5/16/13
• Report Pass: 5/27/13
• Enrolled: 6/5/13
• Chaptered: 6/12/13
• Passed: 6/12/13

Caption

Changes eligibility and provides for administrative changes for the Research and Development Tax Credit (EN NO IMPACT GF RV See Note)

Impact

The passage of HB 563 is anticipated to enhance the economic landscape in Louisiana by incentivizing research and development activities, which can drive innovation and business growth. By offering a structured tax credit scheme, the bill aims to attract both small and large enterprises to execute research initiatives within the state, ideally supporting job creation and contributing to overall economic development. However, the rigorous application and examination processes may challenge smaller entities that may not have the same resources as larger corporations to navigate these hurdles.

Summary

House Bill 563 amends the existing framework for the Research and Development Tax Credit in Louisiana by updating eligibility requirements, application processes, and documentation expectations for businesses. The bill offers a refundable tax credit for businesses engaged in qualified research, allowing taxpayers who employ over 50 individuals to apply for credits against their income and corporate franchise taxes. For smaller businesses, the bill simplifies some requirements yet retains a focus on substantial documentation to verify tax credit claims.

Sentiment

The sentiment around HB 563 appears to be largely favorable, particularly among business leaders and economic development advocates who see the potential for increased investment in research and broader economic growth. Legislators supporting the bill note its importance in maintaining competitive advantage and fostering a dynamic business environment. Concern may exist, however, among some representatives regarding the comprehensive documentation required, which they fear could deter participation among smaller businesses.

Contention

Notable points of contention regarding HB 563 include debates over the level of documentation necessary for claiming tax credits and the potential barrier this poses for smaller businesses. Critics point out that while aiming for accountability and verification of claims can prevent misuse, the emphasis on detailed documentation may discourage smaller firms from leveraging these incentives, thus limiting the broader objectives of the bill to stimulate widespread economic engagement in research and development activities.