State Program
Louisiana Research and Development Tax Credit
A research credit with rates that vary based on Louisiana employee count, with a separate provision for eligible SBIR/STTR award recipients.
Program Overview
Louisiana provides a research tax credit with rates that vary based on the number of Louisiana employees. The program also provides a separate credit for eligible businesses that receive a federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) award. Applications are submitted to Louisiana Economic Development, which issues a certification letter for eligible applicants to use in connection with the tax credit.
Eligibility
- Businesses must employ Louisiana residents and conduct qualified research in Louisiana.
- Businesses receiving an eligible federal SBIR or STTR award may qualify under the applicable award-related provision.
- Qualified research must meet the applicable requirements under Louisiana law.
- Certain professional services firms and businesses primarily engaged in custom manufacturing are excluded, subject to applicable definitions and requirements.
Benefits
- Non-refundable tax credit against Louisiana income and franchise tax.
- Credit rates vary based on the number of Louisiana employees.
- Eligible SBIR/STTR recipients may claim a credit based on the applicable federal award amount.
- Eligible applicants must obtain the required state certification from Louisiana Economic Development.
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