Technology Commercialization Tax Credit
The technology commercialization credit offers tax credits to encourage Louisiana businesses to commercialize research conducted at Louisiana universities and to promote job creation.
Benefits and Eligibility
Technology Commercialization Tax Credit
- Qualifying individuals or businesses can claim an annual, refundable credit on state income or corporate franchise tax liability equal to forty percent (40%) of the cost to purchase or lease machinery and equipment and of expenditures for obtaining rights to use technology, including patents, copyrights and licenses owned or research sponsored by qualifying colleges, technical schools or universities located in Louisiana.
- A qualifying taxpayer must enter an agreement with a Louisiana regionally accredited college, technical school, university, or research company to commercialize or research a technology. Investment cannot exceed $250,000.
- The credit is for an initial five-year period with an option to renew for an additional five years.
Job Tax Credit
- Employer must create a minimum of five new direct jobs in Louisiana, each paying an average minimum of $50,000 in annual wages, and must offer a basic health benefits plan to each new employee.
- Tax credit based on the creation of new jobs is equal to six percent (6%) multiplied by the gross payroll of new direct jobs.
- The credit is for an initial five-year period with an option to renew for an additional five years.
Unused tax credits may be carried forward for up to 20 years.