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:
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))