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 804 Original 2015 Regular Session Adams
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.
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))