Louisiana Administrative Code › Title 13 - ECONOMIC DEVELOPMENT › Part I - Financial Incentive Programs › Chapter 29 - Research and Development Tax Credit › Section I-2905 - Certification of Amount of Credit

Current through Register Vol. 50, No. 6, June 20, 2024
A. Prior to claiming a research and
				development tax credit on any tax return or selling any research and
				development tax credit, a person must apply for and obtain a credit
				certification from LED.
B. The
				application for a credit certification shall be submitted on a form provided by
				the LED and shall include, but not be limited to the following information:
1. an application fee equal to 0.5 percent of
				the amount of the tax credits applied for, with a minimum of $500 and a maximum
				of $15,000, payable to Louisiana Department of Economic Development;
2. appropriate supporting documentation:
a. for taxpayers employing 50 or more
				residents, a federal income tax return and evidence of the amount of federal
				research credit for the same taxable year;
b. for taxpayers employing up to 50
				residents:
i. either:
(a) a federal income tax return and evidence
				of the amount of federal research credit for the same taxable year;
				or
(b) a request that LED enter
				into an attest engagement with a certified public accountant ("CPA") authorized
				to practice in Louisiana or a tax attorney who is selected by LED for a report
				that focuses on verification of the applicants expenditures and claimed
				qualified research activities as well as pay the deposit for such report in
				accordance with R.S. 36:104.1 and
				47:6015;
				and
ii. evidence of the
				amount of qualified research expenses for the same taxable year;
c. for taxpayers claiming credits
				based upon the federal small business innovation research grant, evidence of
				the amount of such grant;
d. the
				LED may also require documentation, including but not limited to the following,
				as proof of an expenditure prior to certification:
i. wages:
(a) copy of W-2 for each employee who
				participates in qualifying research and development activities;
(b) percentage of each employees salary that
				is dedicated to qualifying research and development activities; and
(c) Louisiana Workforce Commission quarterly
				report of wages paid for the company for the third and fourth quarter of the
				tax year in question;
ii. supplies:
(a) invoices with date of purchase
				included;
iii.
				contracted research:
(a) invoices with
				applicable dates or periods of work; and
(b) contracts for the research to be
				performed;
e.
				in order for any research and development project to qualify, the requesting
				company must identify:
i. the business
				component that was developed or improved;
ii the uncertainty that existed in the
				capability, method or design related to such business component;
iii. how the research was technological in
				nature; and
iv. the process of
				experimentation undertaken;
3. the total amount of qualified research
				expenses and the qualified research expenses in the state;
4. the total number of Louisiana residents
				employed by the taxpayer and the number of those Louisiana residents directly
				engaged in research and development;
5. the average wages of the Louisiana
				resident employees not directly engaged in research and development and the
				average wages of the Louisiana resident employees directly engaged in research
				and development;
6. the average
				value of benefits received by all Louisiana resident employees;
7. the cost of health insurance coverage
				offered to all Louisiana resident employees;
8. any other information required by
				LED.