HLS 15RS-1179 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 754
BY REPRESENTATIVE LEGER
TAX CREDITS: Provides relative to awarding research and development tax credits
1 AN ACT
2To amend and reenact R.S. 47:1431(A) and 6015(B)(4) and (C)(2)(c), to enact R.S.
3 47:1407(5), and to repeal R.S. 47:6015(B)(5), relative to research and development
4 tax credits; to provide for the application for such credit; to provide for taxpayers
5 eligible to claim the credit; to provide for the determination of the amount of the
6 credit for certain businesses; to provide for appeals of disapproved credits; and to
7 provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. 47:1431(A) and 6015(B)(4) and (C)(2)(c) are hereby amended and
10reenacted and R.S. 47:1407(5) is hereby enacted to read as follows:
11 §1407. Jurisdiction of the board
12 The jurisdiction of the board shall extend to the following:
13 * * *
14 (5) All matters relating to appeals of tax credit denials, as provided in R.S.
15 47:6015.
16 * * *
17 §1431. Taxpayer's petition
18 A. Whenever a taxpayer is aggrieved by an assessment made by the state
19 collector, or by the state collector's action or failure to act on a claim for refund or
20 credit of an overpayment, or by the Department of Economic Development's denial
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HB NO. 754
1 of a research and development tax credit, such taxpayer may appeal to the board for
2 a redetermination of the assessment, or a determination of the alleged overpayment,
3 or determination of the amount of the credit found due, by filing a petition with the
4 board within the respective periods set forth in R.S. 47:1565, 1566, and 1625.
5 * * *
6 §6015. Research and development tax credit
7 * * *
8 B.
9 * * *
10 (4) The Department of Economic Development shall approve or disapprove
11 each application. No credits shall be granted to a taxpayer under this Section unless
12 the credit is approved by the Department of Economic Development.
13 (a) If the Department of Economic Development fails to approve or
14 disapprove a properly filed application for a credit within one year from the date
15 received or if the department disapproves the application in whole or in part, the
16 taxpayer seeking such credit may appeal to the Board of Tax Appeals for a hearing
17 on the application filed in accordance with the provisions set forth in R.S. 47:1431.
18 No appeal may be filed before the expiration of one year from the date of filing such
19 application unless the department renders a decision thereon within that time, nor
20 after the expiration of sixty days from the date of mailing by registered mail by the
21 department to the taxpayer of a notice of the disapproval of the part of the
22 application to which such appeal relates.
23 (b) Any consideration, reconsideration, or action by the department with
24 respect to such claim following the mailing of a notice by registered mail of
25 disapproval shall not operate to extend the period within which an appeal may be
26 taken.
27 (c) The Board of Tax Appeals shall have jurisdiction to determine the correct
28 amount of credit for the period in controversy and to render judgment ordering the
29 granting of any credit found to be due.
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HB NO. 754
1 * * *
2 C.
3 * * *
4 (2) The amount of the credit authorized in this Section shall be equal to
5 either:
6 * * *
7 (c) Forty percent of the difference, if any, of the Louisiana qualified research
8 expenses for the taxable year minus the base amount, if the taxpayer is an entity that
9 employs less than fifty persons.
10 * * *
11 Section 2. R.S. 47:6015(B)(5) is hereby repealed in its entirety.
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 754 Original 2015 Regular Session Leger
Abstract: Provides for appeals of denials of research and development tax credits and
repeals eligibility of certain businesses that do not have a pending or issued U.S.
patent.
Present law authorizes the Dept. of Economic Development (the department) to allow
research and development tax credits for qualified research expenses in the state.
Present law provides for the amount of the credit for different entities. For an entity that
employs fewer than 50 people, the amount of the credit is 40% of La. qualified research
expenses for the taxable year. Proposed law changes the credit to the difference of 40% of
La. qualified research expenses minus the base amount. Present law defines the base amount
as 70% of the average annual qualified research expenses in Louisiana during the three years
preceding the taxable year.
Present law authorizes professional service firms and businesses engaged in custom
manufacturing and fabricating that do not have a pending or issued U.S. patent to apply for
or receive the credit at the invitation of the secretary of the department.
Proposed law repeals present law.
Present law requires the department to approve or disapprove each tax credit application.
No credits shall be granted to a taxpayer unless the credit is approved by the department.
Proposed law authorizes an applicant for a tax credit to appeal to the Board of Tax Appeals
for a hearing on the application if the department fails to act on the application within one
year or if the department disapproves all or part of the application. Appeals of disapprovals
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HB NO. 754
of all or part of an application shall be made within 60 days of the applicant's receipt of
notification by registered mail of the disapproval.
Proposed law grants the Board of Tax Appeals jurisdiction over appeals of research and
development tax credit denials and authorizes a taxpayer aggrieved by the department's
denial of a research and development tax credit to petition the board for a determination of
the amount of the credit.
(Amends R.S. 47:1431(A) and 6015(B)(4) and (C)(2)(c); Adds R.S. 47:1407(5); Repeals
R.S. 47:6015(B)(5))
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