Extends the sunset of the research and development tax credit. (gov sig) (EN -$1,000,000 GF RV See Note)
Impact
By extending the R&D tax credit, SB69 aims to bolster state laws relating to economic development and innovation. This provision is expected to stimulate investment in research activities among small businesses, thereby fostering growth in technology and innovation sectors in Louisiana. The extension provides financial relief and encourages small enterprises to pursue federal grants designed to support R&D efforts, ensuring that these beneficial programs continue to thrive within the state.
Summary
Senate Bill 69 focuses on amending Louisiana's tax code by extending the sunset date of the research and development (R&D) tax credit. This bill is particularly significant for taxpayers who receive federal grants, as it allows for a tax credit equivalent to thirty percent of the award received during the tax year. Originally, the sunset provision was set to expire, potentially restricting access to this financial incentive for businesses engaged in innovative research and development activities.
Sentiment
The sentiment surrounding SB69 appears overwhelmingly positive, with support noted among legislators from both parties. The bill received a unanimous vote of 101-0 in the House, reflecting a bipartisan agreement on the importance of supporting research and development initiatives. Advocates argue that this financial incentive is crucial for driving economic growth and innovation, making it a key component of Louisiana's overall economic strategy.
Contention
While the bill enjoys broad support, some concerns have been raised regarding the sustainability of tax credits and their long-term impact on the state budget. Despite the immediate benefits for businesses and potential job creation, some fiscal conservatives question whether extending such tax incentives is the most effective use of state resources. The discussions have centered around balancing the desire for economic growth with prudent fiscal management, an ongoing debate among policymakers.
Exempts certain research and development tax credit recipients from detailed examinations by the Department of Economic Development (EN SEE FISC NOTE GF EX See Note)
Extends the research and development tax credit program from Dec. 31, 2013, to Dec. 31, 2019, and changes the refundable tax credit to a tax rebate (RE INCREASE GF RV See Note)
Provides relative to the amount of the research and development tax credit and authorizes transferability of the credit under certain circumstances (EN +$300,000 GF RV See Note)
Changes the research and development tax credit program to a "rebate"; decreases the program from December 31, 2013 to June 30, 2013; reduces the amount of the rebate by requiring all employees to be counted in the size of the business, rather than only resident employees; and changes it calculation. (gov sig) (EN INCREASE GF RV See Note)
Establishes a baseline limit on all claims against income and franchise tax for Research and Development tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)
Establishes termination dates for certain tax credits and incentive programs administered by the Department of Economic Development. (gov sig) (EN INCREASE GF RV See Note)