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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):
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
To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.
Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.
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.
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.
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.
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.
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.
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.