HLS 15RS-1229 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 430
BY REPRESENTATIVE JACKSON
TAX CREDITS: Provides for the carry forward rather than the refund of the research and
development tax credit
1 AN ACT
2To amend and reenact R.S. 47:6015(B)(1) and (2) and (D), relative to income and
3 corporation franchise tax credits; to provide with respect to the tax credit for certain
4 research and development expenses; to provide with respect to authorization for
5 issuance of refunds for tax credits which exceed taxpayer tax liability; to provide for
6 certain limitations; to provide for effectiveness; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6015(B)(1) and (2) and (D) are hereby amended and reenacted
9to read as follows:
10 ยง6015. Research and development tax credit
11 * * *
12 B.(1) Any taxpayer who employs fifty or more persons and claims for the
13 taxable year a federal income tax credit under 26 U.S.C. 41(a) for increasing research
14 activities shall be allowed a refundable tax credit to be applied against income and
15 corporation franchise taxes due. If the amount of the credit exceeds the amount of
16 tax liability for the tax year, then any unused credit may be carried forward as a
17 credit against subsequent income tax for a period not to exceed five years.
18 (2) Any taxpayer who employs less than fifty persons and claims for the
19 taxable year a federal income tax credit under 26 U.S.C. 41(a) for the taxable year,
20 or meets the requirements of Subparagraph (3)(i) of this Subsection, shall be allowed
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1229 ORIGINAL
HB NO. 430
1 a refundable tax credit to be applied against income and corporation franchise taxes
2 due. If the amount of the credit exceeds the amount of tax liability for the tax year,
3 then any unused credit may be carried forward as a credit against subsequent income
4 tax for a period not to exceed five years.
5 * * *
6 D. A taxpayer who receives a federal Small Business Innovation Research
7 Grant as created by the Small Business Innovation Development Act of 1982 (P.L.
8 97-219), reauthorized by the Small Business Research and Development
9 Enhancement Act (P.L. 102-564), and reauthorized again by the Small Business
10 Reauthorization Act of 2000 (P.L. 106-554), shall be allowed a refundable tax credit
11 in an amount equal to forty percent of the award received during the tax year. If the
12 amount of the credit exceeds the amount of tax liability for the tax year, then any
13 unused credit may be carried forward as a credit against subsequent income tax for
14 a period not to exceed five years.
15 * * *
16 Section 2. The provisions of this Act shall be applicable to tax years beginning on
17or after January 1, 2015.
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)]
HB 430 Original 2015 Regular Session Jackson
Abstract: Changes the tax credit for qualified research expenses for certain employers from
a refundable credit to a credit in which amounts of the credit above the tax liability
may be carried forward and applied against subsequent tax liability for up to five
years.
Present law authorizes a refundable income and corporation franchise tax credit for certain
taxpayers who employ 50 or more persons and claim a federal income tax credit for
increasing research activities. This tax credit is also available for taxpayers who employ less
than 50 employees if the employer meets certain eligibility requirements. The amount of the
credit ranges from 8% to 40% of the La. qualified research expenses for the taxable year
depending on the number of employees the employer employs minus a base amount.
Present law additionally provides for a refundable tax credit for a taxpayer who receives a
federal Small Business Innovation Research Grant tax credit in an amount equal to 40% of
the award received during the tax year.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1229 ORIGINAL
HB NO. 430
Proposed law changes the tax credit from a refundable credit to one in which credit amounts
which exceed taxpayer liability may be carried forward against subsequent income or
corporation franchise tax liability for up to five years.
Present law prohibits credits from being issued for research expenditures incurred or Small
Systems Business Innovation Research Grant funds received after Dec. 31, 2019.
Proposed law retains present law.
Applicable to tax years beginning on or after Jan. 1, 2015.
(Amends R.S. 47:6015(B)(1) and (2) and (D))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.