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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