GREEN SHEET REDIGEST
HB 300 2017 Regular Session Davis
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX CREDITS: Provides relative to the amount of the research and development tax
credit and authorizes transferability of the credit under certain circumstances.
DIGEST
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
100 or more 5%
50-99 10%
fewer than 50 30%
Present law allows a taxpayer receiving a grant from the federal Small Business Technology
Transfer Program or the 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 provides that the tax credit shall apply to Phase I or Phase II grants from the
Federal Small Business Technology Transfer program or from the Small Business
Technology Transfer Program and 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 Technology
Transfer Program or the Small Business Innovation Research Grant program for 2018 and
thereafter 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. The notification submitted to the Department of Revenue shall
include a transfer processing fee of $200 per transferee.
Proposed law further requires that a sale or transfer of the tax credit shall not be effective
until recorded in the tax credit registry in accordance with present law.
Proposed law authorizes carryforward of the credit beginning on the date on which the credit
was earned, regardless of when the credit was transferred or sold.
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Prepared by James Benton. Present law defines "base amount" for purposes of calculating the amount of the credits as
70% of the average annual qualified research expenses in La. during the 3 years preceding
the taxable year.
Proposed law changes present law by redefining "base amount" depending upon the number
of persons the taxpayer employs.
Proposed law increases the "base amount" for purposes of a taxpayer that employs 50 or
more persons from 70% to 80% of the average annual qualified research expenses in La.
during the three years preceding the taxable year.
Proposed law decreases the "base amount" for purposes of a taxpayer that employs less than
50 persons from 70% to 50% of the average annual qualified research expenses in La. during
the three preceding taxable years.
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 further provides that no credit shall be allowed for Small Business Technology
Transfer Program funds received, and 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), (E)(1), and (J))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change the employee threshold for the 5% tax credit in proposed law from one
that employs fifty or more persons to one that employ 100 or more.
2. Reduce the amount of the tax credit for a taxpayer that employs 50 - 99 persons
from 20% to 10%.
3. Redefine "base amount" for purposes of calculating the credit based on the
number of employees.
The House Floor Amendments to the engrossed bill:
1. Made technical amendments.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Makes technical changes.
2. Makes clarifications in proposed law to make it conform with existing law.
3. Provides for a processing fee of $200.
4. Adds that no credit shall be allowed for research expenditures incurred for Small
Business Technology Transfer Program funds received.
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Prepared by James Benton.