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 480 Original 2019 Regular Session Davis
Abstract: Extends the research and development tax credit program for two years, increases the
amount of the tax credit from 30% to 40%, and authorizes for transferability and a state
direct buy-back of the 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 5%
50-99 10%
fewer than 50 30%
Proposed law changes present law by increasing the the amount of the percentage for a taxpayer who
employs fewer than 50 employees from 30% to 40%.
Present law allows a taxpayer receiving a federal Small Business Innovation Research Grant a tax
credit in an amount equal to 30% of the award received during the tax year. Proposed law increases
the tax credit from 30% to 40% of the award received during the tax year.
Present 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, present 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 retains present law but extends authorization to transfer tax credits to employers who
employ fewer than 50 persons and meet other eligibility requirements.
Present law authorizes a carryforward period of the credit beginning on the date on which the credit
was earned, regardless of when the credit was transferred or sold.
Present law prohibits the payment of credits for research expenditures incurred, Small Business
Technology Transfer Program funds received or Small Business Innovation Research Grant funds
received after Dec. 31, 2021.
Proposed law extends the sunset of the program from Dec. 31, 2021 to Dec. 31, 2023.
Effective Jan. 1, 2020, and applicable to tax years beginning on and after Jan. 1, 2020.
(Amends R.S. 47:6015(C)(2)(c), (D), and (J))