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Louisiana
R&D Tax Credits

Connect with us to find out how R&D tax credits can boost your organization’s bottom line.

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This post was last updated on Aug 14, 2025.

Louisiana R&D Tax Credit

Discover the benefits of Louisiana state credits and see how your business could qualify.

The Louisiana Research and Development Tax Credit encourages existing businesses with operating facilities in Louisiana to establish or continue R&D activities within the state to receive up to a 30% tax credit on qualified research expenditures (QREs) incurred in Louisiana—with no cap and no minimum requirement.

The incentive is open to companies who meet certain eligibility requirements (see below) pertaining to R&D activities conducted in Louisiana.

In order for credits to be awarded, a taxpayer must claim the expenditures within one year after December 31 of the tax period in which the expenditures were incurred.

Louisiana R&D credits are claimed using an online application system.

Ineligible Businesses

The following businesses will be ineligible to participate in the Research and Development tax credit program, unless specifically invited by the Department of Louisiana Economic Development (LED):

  • Professional services firms (e.g. architecture or engineering) that do not have a pending or issued United States patent related to the QREs claimed; or
  • Businesses primarily engaged in custom manufacturing and custom fabricating that do not have a pending or issued United States patent related to the QREs claimed.

Learn more about Louisiana's R&D Tax Credit here, here, and here.

R&D Tax Credit Available:

Yes

Eligible Entities:

C-Corporation, S-Corporations, LLCs, Partnerships

Deadline for Tax Filing:

Due with Louisiana Tax Return

Data Required to Compute Credit:

Claim Period Federal Qualified R&D Expenses (QREs)

What Information is needed?

Louisiana QREs for Prior 3 Years

Number of Louisiana Employees

Credit Carryforward:

5 Years

The R&D tax credit equals:

  • 5% of the difference, if any, of the Louisiana QREs for the taxable year minus the base amount (for taxpayers employing 100 or more persons);
  • 10% of the difference, if any, of the Louisiana QREs for the taxable year minus the base amount (for taxpayers employing 50-99 persons); or
  • 30% of the difference, if any, of the Louisiana QREs for the taxable year minus the base amount (for taxpayers employing less than 50 persons).

Specific Items to Note:

  • A company must claim the Louisiana R&D credit within one year after December 31 in which the expenditures was incurred.
  • Prior to claiming a Louisiana R&D credit, the taxpayer must apply for and obtain a credit certification from the LED Secretary.  A company must submit a completed online application and fee.
  • Audit Considerations:  Each year, prior to the issuance of credits, LED will perform a detailed examination of at least 10% of all applications received. The Secretary will select applications for audit based on one or more of the following:
  1. A random sampling of applications;
  2. the applicant's business sector; or
  3. other selection criteria as determined by LED.
%
%
%
carry forward for credit usage

Louisiana R&D Tax Credit Eligibility Summary:

Is the R&D Tax Credit Available?:
Yes
No
Eligible Entities:
Deadline for Tax Filing:
Data Required to Compute Credit:
What Information is needed?:

Louisiana R&D Tax Credit Guidelines:

Louisiana R&D Tax Credit Case Study

A Louisiana-based company recovered thousands in R&D tax credits to refuel growth.

$

Total state R&D tax credits earned

%

Amount of wages qualified for tax credits

$

Total R&D tax credit earned

Key Louisiana R&D Tax Credits R&D Tax Rules Changes

2019' - 22
22' and after
2019' - 22
22' and after

Resources

There are many other considerations and exemptions, including what documentation the IRS requires for the R&D tax credits. Stay updated to navigate the new tax laws with confidence.

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Connect with us to find out how R&D Tax Credits can boost your organization’s performance.

Ready to Maximize Your State Credits?

With just a little info, our Strike Experts can help you start your R&D tax credit journey.

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Ready to calculate your R&D tax credits?

To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.

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Download the app.

Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.

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Frequent Asked Questions

What is the Louisiana R&D tax credit?

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The Louisiana R&D tax credit is tiered based on employee count: 30% for businesses with fewer than 50 employees, 10% for 50-99, and 5% for 100 or more; it also offers 30% for SBIR/STTR grants, with an annual program cap of $12 million starting July 1, 2025. Contact Strike Tax to maximize your savings.

What activities qualify for Louisiana’s R&D tax credit?

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Activities must meet federal IRC § 41 criteria, be conducted in Louisiana, and involve at least 80% experimentation, such as developing new products or improving processes; excludes professional services or custom manufacturing without patents. Strike Tax can identify qualifying projects.

Can startups in Louisiana claim R&D tax credits?

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Yes, startups with fewer than 50 employees qualify for the 30% rate, and can also claim the federal R&D credit with payroll tax offsets up to $500,000 per year for up to five years if gross receipts are under $5 million. Strike Tax can guide eligibility.

How do I document R&D expenses for a federal credit in Louisiana?

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Maintain contemporaneous records like project plans, time logs, expense receipts for wages, supplies, and contract research, proving in-state activity and experimentation percentage. For 2025, Form 6765 requires Section G for business component details on claims over $10,000. Strike Tax ensures audit-ready documentation.

What is the process to claim Louisiana’s R&D tax credit?

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Apply for certification from the Louisiana Department of Economic Development within one year after December 31 of the expenditure year, then claim on your state tax return. For federal, file Form 6765. Strike Tax streamlines the process.

What are the 2025 changes to R&D tax credits in Louisiana?

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The annual cap remains $12 million for claims on returns due on or after July 1, 2025; federally, Form 6765 adds Section G for enhanced reporting, and Section 174 restores full expensing. Strike Tax can help navigate these updates.