ENROLLED
ACT No. 336
2017 Regular Session
HOUSE BILL NO. 300
BY REPRESENTATIVES DAVIS, FOIL, AND STOKES AND SENATOR MORREL L
1 AN ACT
2 To amend and reenact R.S. 47:6015(C)(2), (D), (E)(1), and (J), relative to the research and
3 development tax credit program; to provide for definitions; to provide for credit
4 rates; to provide for transferability of credits; to extend the termination of the credit;
5 to provide for applicability; to provide for an effective date; and to provide for
6 related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6015(C)(2), (D), (E)(1), and (J) are hereby amended and
9 reenacted to read as follows:
10 ยง6015. Research and development tax credit
11 * * *
12 C.
13 * * *
14 (2) The amount of the credit authorized in this Section shall be equal to
15 either:
16 (a) Eight Five percent of the difference, if any, of the Louisiana qualified
17 research expenses for the taxable year minus the base amount, if the taxpayer is an
18 entity that employs one hundred or more persons.
19 (b) Twenty Ten percent of the difference, if any, of the Louisiana qualified
20 research expenses for the taxable year minus the base amount, if the taxpayer is an
21 entity that employs fifty to ninety-nine persons.
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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 Phase I or II grant from the federal Small
6 Business Technology Transfer Program or a federal Small Business Innovation
7 Research Grant as created by the Small Business Innovation Development Act of
8 1982 (P.L. 97-219), reauthorized by the Small Business Research and Development
9 Enhancement Act (P.L. 102-564), and reauthorized again by the Small Business
10 Reauthorization Act of 2000 (P.L. 106-554), shall be allowed a tax credit in an
11 amount equal to forty thirty percent of the award received during the tax year.
12 (2) In addition to the credit utilization allowed by Paragraph (C)(3) of this
13 Section, research and development tax credits for tax years 2018 and later that are
14 based on participation in the Small Business Technology Transfer Program or the
15 Small Business Innovation Research Grant program and that were not previously
16 claimed by any taxpayer against his income or corporation franchise tax may be
17 transferred or sold to another Louisiana taxpayer, subject to the following conditions:
18 (a) A single transfer or sale may involve one or more transferees. A
19 transferee of the tax credits may transfer or sell such tax credits subject to the
20 conditions of this Paragraph.
21 (b) Transferors and transferees shall submit to the Department of Revenue
22 in writing, a notification of any transfer or sale of tax credits within ten business days
23 after the transfer or sale of such tax credits. No transfer or sale of tax credits shall
24 be effective until recorded in the tax credit registry in accordance with R.S. 47:1524.
25 The notification shall include the transferor's tax credit balance prior to transfer, a
26 copy of any tax credit certification letter issued by the Department of Economic
27 Development, the transferor's remaining tax credit balance after transfer, all tax
28 identification numbers for both transferor and transferee, the date of the transfer, the
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1 amount transferred, a copy of the credit certificate, the price paid by the transferee
2 to the transferor, and any other information required by the Department of Revenue.
3 The notification submitted to the Department of Revenue shall include a transfer
4 processing fee of two hundred dollars per transferee.
5 (c) Failure to comply with this Paragraph shall result in the disallowance of
6 the tax credit until the taxpayers are in full compliance.
7 (d) The transfer or sale of this credit does not extend the time in which the
8 credit can be used. The carryforward period for a credit that is transferred or sold
9 begins on the date on which the credit was earned.
10 E. As used in this Section, the following terms shall have the meaning
11 hereafter ascribed to them, unless the context clearly indicates otherwise:
12 (1) "Base amount" shall mean seventy the following:
13 (a) If the taxpayer is an entity that employs fifty or more persons, the base
14 amount shall be eighty percent of the average annual qualified research expenses
15 within Louisiana during the three years preceding the taxable years.
16 (b) If the taxpayer is an entity that employs less than fifty persons, the base
17 amount shall be fifty percent of the average annual qualified research expenses
18 within Louisiana during the three years preceding the taxable year taxable years.
19 * * *
20 J. No credit shall be allowed pursuant to this Section for research
21 expenditures incurred , Small Business Technology Transfer Program funds received
22 or Small Business Innovation Research Grant funds received after December 31,
23 2019 2021.
24 * * *
25 Section 2. The provisions of this Act shall apply to tax years beginning on or after
26 January 1, 2017.
27 Section 3. This Act shall become effective upon signature by the governor or, if not
28 signed by the governor, upon expiration of the time for bills to become law without signature
29 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
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1 vetoed by the governor and subsequently approved by the legislature, this Act shall become
2 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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