HLS 17RS-966 ORIGINAL
2017 Regular Session
HOUSE BILL NO. 300
BY REPRESENTATIVE DAVIS AND SENATOR MORREL L
TAX CREDITS: Provides relative to the amount of the research and development tax credit
and authorizes transferability of the credit under certain circumstances
1 AN ACT
2To amend and reenact R.S. 47:6015(C)(2), (D), and (J) relative to the research and
3 development tax credit program; to provide for credit rates; to provide for
4 transferability of credits; to provide for application; and to provide for related
5 matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:6015(C)(2), (D), and (J) are hereby amended and reenacted to
8read as follows:
9 ยง6015. Research and development tax credit
10 * * *
11 C.
12 * * *
13 (2) The amount of the credit authorized in this Section shall be equal to
14 either:
15 (a) Eight Five percent of the difference, if any, of the Louisiana qualified
16 research expenses for the taxable year minus the base amount, if the taxpayer is an
17 entity that employs one hundred fifty or more persons.
18 (b) Twenty percent of the difference, if any, of the Louisiana qualified
19 research expenses for the taxable year minus the base amount, if the taxpayer is an
20 entity that employs fifty to ninety-nine persons.
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HB NO. 300
1 (c) Forty Thirty percent of the difference, if any, of the Louisiana qualified
2 research expenses for the taxable year minus the base amount, if the taxpayer is an
3 entity that employs less than fifty persons.
4 * * *
5 D.(1) A taxpayer who receives a federal Small Business Innovation Research
6 Grant as created by the Small Business Innovation Development Act of 1982 (P.L.
7 97-219), reauthorized by the Small Business Research and Development
8 Enhancement Act (P.L. 102-564), and reauthorized again by the Small Business
9 Reauthorization Act of 2000 (P.L. 106-554), shall be allowed a tax credit in an
10 amount equal to forty thirty percent of the award received during the tax year.
11 (2) In addition to the credit utilization allowed by Paragraph (C)(3) of this
12 Section, research and development tax credits that are based on participation in the
13 Small Business Innovation Research Grant program and that were not previously
14 claimed by any taxpayer against his income or corporation franchise tax may be
15 transferred or sold to another Louisiana taxpayer, subject to the following conditions:
16 (a) A single transfer or sale may involve one or more transferees. The
17 transferee of the tax credits may transfer or sell such tax credits subject to the
18 conditions of this Paragraph.
19 (b) Transferors and transferees shall submit to the Department of Revenue
20 in writing, a notification of any transfer or sale of tax credits within ten business days
21 after the transfer or sale of such tax credits. No transfer or sale of tax credits shall
22 be effective until recorded in the tax credit registry in accordance with R.S. 47:1524.
23 The notification shall include the transferor's tax credit balance prior to transfer, a
24 copy of any tax credit certification letter issued by the Department of Economic
25 Development, the transferor's remaining tax credit balance after transfer, all tax
26 identification numbers for both transferor and transferee, the date of the transfer, the
27 amount transferred, a copy of the credit certificate, the price paid by the transferee
28 to the transferor, and any other information required by the Department of Revenue.
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HB NO. 300
1 (c) Failure to comply with this Paragraph shall result in the disallowance of
2 the tax credit until the taxpayers are in full compliance.
3 (d) The transfer or sale of this credit does not extend the time in which the
4 credit can be used. The carryforward period for a credit that is transferred or sold
5 begins on the date on which the credit was earned.
6 * * *
7 J. No credit shall be allowed pursuant to this Section for research
8 expenditures incurred or Small Business Innovation Research Grant funds received
9 after December 31, 2019 2021.
10 * * *
11 Section 2. The provisions of this Act shall apply to tax years beginning on or after
12January 1, 2017.
13 Section 3. This Act shall become effective upon signature by the governor or, if not
14signed by the governor, upon expiration of the time for bills to become law without signature
15by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
16vetoed by the governor and subsequently approved by the legislature, this Act shall become
17effective on the day following such approval.
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 300 Original 2017 Regular Session Davis
Abstract: Reduces the credit amount for research and development tax credits and allows
for transferability of the Small Business Innovation Research Grant credit.
Present law authorizes an 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 tax payers who employ fewer than
50 employees if the employer meets certain eligibility requirements.
Present law authorizes the following credits as a percentage of increased research expenses
for a taxpayer who employs the following number of employees:
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HB NO. 300
Number of EmployeesTax Credit
100 or more 8%
50-99 20%
fewer than 50 40%
Proposed law authorizes the following credits:
Number of EmployeesTax Credit
50 or more 5%
fewer than 50 30%
Present law allows a taxpayer receiving a federal Small Business Innovation Research Grant
a tax credit in an amount equal to 40% of the award received during the tax year. Proposed
law reduces the tax credit from 40% to 30% of the award received during the tax year.
Proposed law authorizes credits based upon participation in the Small Business Innovation
Research Grant program to be transferred or sold to one or more La. taxpayers. To utilize
the transferred tax credit, proposed law requires transferors and transferees to submit to the
Dept. of Revenue written notification of any transfer or sale of this tax credit within 10
business days after the transfer or sale. Proposed law specifies the information to be
included in the notification. Proposed law further requires that a sale or transfer of this tax
credit shall not be effective until recorded in the tax credit registry in accordance with
present law. Proposed law allows the credit to carry forward beginning on the date on which
the credit was earned, regardless of when the credit was transferred or sold.
Present law provides that no credit shall be allowed for research expenditures incurred or
Small Business Innovation Research Grant funds received after Dec. 31, 2019. Proposed
law extends the credit availability to research expenditures incurred on or before Dec. 31,
2021.
Proposed law shall apply to tax years beginning on or after Jan. 1, 2017.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6015(C)(2), (D), and (J))
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