Changes eligibility and provides for administrative changes for the Research and Development Tax Credit (EN NO IMPACT GF RV See Note)
Impact
The passage of HB 563 is anticipated to enhance the economic landscape in Louisiana by incentivizing research and development activities, which can drive innovation and business growth. By offering a structured tax credit scheme, the bill aims to attract both small and large enterprises to execute research initiatives within the state, ideally supporting job creation and contributing to overall economic development. However, the rigorous application and examination processes may challenge smaller entities that may not have the same resources as larger corporations to navigate these hurdles.
Summary
House Bill 563 amends the existing framework for the Research and Development Tax Credit in Louisiana by updating eligibility requirements, application processes, and documentation expectations for businesses. The bill offers a refundable tax credit for businesses engaged in qualified research, allowing taxpayers who employ over 50 individuals to apply for credits against their income and corporate franchise taxes. For smaller businesses, the bill simplifies some requirements yet retains a focus on substantial documentation to verify tax credit claims.
Sentiment
The sentiment around HB 563 appears to be largely favorable, particularly among business leaders and economic development advocates who see the potential for increased investment in research and broader economic growth. Legislators supporting the bill note its importance in maintaining competitive advantage and fostering a dynamic business environment. Concern may exist, however, among some representatives regarding the comprehensive documentation required, which they fear could deter participation among smaller businesses.
Contention
Notable points of contention regarding HB 563 include debates over the level of documentation necessary for claiming tax credits and the potential barrier this poses for smaller businesses. Critics point out that while aiming for accountability and verification of claims can prevent misuse, the emphasis on detailed documentation may discourage smaller firms from leveraging these incentives, thus limiting the broader objectives of the bill to stimulate widespread economic engagement in research and development activities.
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)
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)
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)
Creates the Medical Education & Research Finance Work Group to provide findings and recommendations to the legislature relative to a formula-based financing model for the funding of Louisiana's public institutions for graduate and professional medical education and biomedical and health-related research
Urges and requests certain state universities and research entities to pursue opportunities for research on the safety and clinical efficacy of therapeutic marijuana.
Requests the Senate and House committees on agriculture, forestry, aquaculture, and rural development to meet and function as a joint committee to study and make recommendations regarding the appropriate level of support to further the missions, goals, and priorities of the Louisiana State University Agricultural Center and the Southern University Agricultural Research and Extension Center.