Louisiana R&D Tax Credit Case Study

The R&D tax credit is one of the most valuable credits leveraged by companies. The R&D credit yields billions of dollars in federal and state benefits to companies engaged in qualifying research. The R&D tax credit can provide a significant reduction to current and future tax liabilities and a source of cash.

Benefits

  • Up to 13.5 cents of R&D tax credit for every qualified dollar
  • Dollar-for-dollar reduction in your federal and state income tax liability
  • Credit carried forward up to 20 years

Qualifications

More companies in Louisiana can now qualify for the R&D tax credit. Companies are able to qualify R&D activities beginning with the development of concepts and extend to the point where a product, process, formula, or other business component is ready to be commercially released. If you are engaged in any research activities, looking into a potential R&D tax credit may be a great benefit. In addition, look back studies can recognize unclaimed credits for the last 3 or 4 open tax years.

Case Study

An architectural firm in New Orleans with fewer than 50 employees had never before claimed the R&D credit. This project involved the tax year 2013. The Company qualified for the federal R&D credits of $37,164 and an additional refundable $109,527 in Louisiana state R&D Tax Credit.

   
FEDERAL
 
LOUISIANA
Year
Total QREs
Credit
Total QREs
Credit
2013
$653,173
$37,164
$653,164
$109,527