Louisiana Nonrefundable Credits
Credit for Certain Disabilities
A credit of $100 against the tax is permitted for the taxpayer, spouse, or dependent who is blind, deaf, mentally incapacitated, or has lost the use of a limb. Only one credit is allowed per person. The disability must exist at the end of the taxable year, or if death occurred during the taxable year, at the date of death. If you are claiming this credit for the first time, a physician's statement certifying the disability is required. If one is not submitted with the return, it will be requested later. For purposes of this credit;
- Blind is defined as one who is totally blind or whose central field of acuity does not exceed 20/200 in the better eye with correcting lenses or whose visual acuity is limited to a field no greater than 20 degrees.
- Mentally Incapacitated is defined as one who is incapable of caring for himself/herself or performing routine daily health requirements due to his/her mental condition.
- Loss of Limb is defined as one who has lost one or both hands at or above the wrist or one or both feet at or above the ankle. This credit also applies if use of the limb or limbs has been permanently lost.
- Deaf is defined as one who cannot understand speech through auditory means alone (even with the use of amplified sound) and must either use visual means or rely on other means of communication.
Credit for Contributions to Educational Institutions (Computer Equipment)
Taxpayers who donate computer equipment to educational institutions defined by Louisiana R.S. 47:37 are allowed a credit of 40% of the value of the property donated against their Louisiana income tax. The recipient certifies the donation or contribution of property by using the Certificate of Donation, Form R-3400. The completed certification form must be attached to the individual income tax return.
Credit for Net Income Taxes Paid to Other States
If you were a resident of Louisiana for the entire year, you are allowed a credit for the net income taxes properly paid to another state of the United States. No credit may be claimed for taxes paid to cities, the District of Columbia, or foreign countries. The credit allowed on your Louisiana return must be for the same taxable year for which the tax was paid to another state or in the succeeding taxable year.
Other Louisiana Nonrefundable Credits
- Premium Tax – Provides a credit for premium taxes paid during the preceding 12 months by an insurance company authorized to do business in Louisiana. The credit may be passed to individuals through certain legal entities such as partnerships. A schedule must be attached listing the entities that paid the premium tax and generated the credit on behalf of the individual.
- Commercial Fishing – Provides a credit for gasoline and special fuels taxes paid for operating or propelling any commercial fishing boat. Attach a schedule listing all invoices and taxes paid. DO NOT claim the credit if you have already received a fuel tax refund.
- Family Responsibility – Provides a credit for the amount contributed in a family responsibility program under the provisions of R.S. 46:449. The amount of this credit is equal to 33.3 percent of the contribution not to exceed $200.
- Small Town Doctor/Dentist – Provides a credit for certified medical doctors and dentists licensed to practice in certain areas of Louisiana. The credit is limited to $5,000.
- Bone Marrow – Provides a credit to employers authorized to do business in the state who incur bone marrow donor expense by developing a bone marrow donation program, educating employees related to bone marrow donations, making payments to a health care provider for determining tissue types of potential donors, and paying wages to an employee for time related to tissue typing and bone marrow donation. If the wage expense is used to obtain the credit, it cannot be deducted as an expense for income tax purposes. The amount of the credit is equal to 25 percent of the bone marrow donor expense paid or incurred by the employer during the tax year.
- Law Enforcement Education – Provides a credit for certain law enforcement officers and specified employees of the Louisiana Departments of Public Safety or Corrections for specified c post-secondary educational expenses incurred in the pursuit of an undergraduate degree related to law enforcement.
- First Time Drug Offenders – Provides a credit for a taxpayer who provides full-time employment to an individual who has been convicted of a first time drug offense, and who is less than 25 years of age at the time of initial employment.
- Bulletproof Vest – Provides a credit for the purchase of a bulletproof vest for certain law enforcement personnel. The credit is limited to $100.
- Nonviolent Offenders – Provides a credit for a taxpayer who provides full-time employment to an individual who has been convicted of a first-time nonviolent offense, has completed a court-ordered program certified by the employee’s probation officer, and has worked 180 days. A statement signed by both the employer and employee certifying the employee’s full-time work status for the year must be attached to the return.
- Qualified Playgrounds – Provides a credit for donations to assist qualified playgrounds. The credit is for the lesser of $1,000 or one-half of the value of the cash, equipment, goods, or services donated. For more information on this credit, see Revenue Ruling No. 02-020 posted on LDR’s website.
- Debt Issuance – Provides a credit for the filing fee paid to the Louisiana State Bond Commission, which is incurred by an economic development corporation in the preparation and issuance of bonds.
- Donations of Materials, Equipment, Advisors, Instructors - Provides a credit for employers within the state for donations of the newest technology available in materials, equipment, or instructors to public training providers, secondary and postsecondary vocational-technical schools, community colleges, or apprenticeship programs registered with the Louisiana Workforce Commission to assist in the development of training programs designed to meet industry needs. The credit is for 50 percent of the value of the donated materials, equipment, or services rendered by the instructor. When taken with other applicable credits, this credit cannot exceed 20 percent of the employer’s tax liability for any taxable year.
- Atchafalaya Trace – Provides a credit to certain heritage-based cottage industries that have entered into a contract with the State Board of Commerce and Industry. A copy of the contract must be attached to the return.
- Organ Donation – Provides a credit to offset certain expenses incurred by an individual or spouse for a living organ donation.
- Household Expense for Physically and Mentally Incapable Persons – Provides a credit for a person who maintains a household that includes one or more dependents who are physically or mentally incapable of caring for themselves. The credit is for the applicable percentage of employment related expenses allowable pursuant to Section 21 of the Internal Revenue Code.
- Previously Unemployed – Provides a credit for hiring a previously unemployed person who participates in the Family Independence Work Program in a newly created full-time job.
- Recycling Credit – Provides a credit for the purchase of certain equipment or service contracts related to recycling. The credit must be certified by the Louisiana Department of Environmental Quality and a copy of the certification must be attached to the return.
- Basic Skills Training – Provides a credit for employers who pay for training to bring employees’ reading, writing, or mathematical skills to at least the 12th grade level. The credit is limited to $250 per participating employee, not to exceed $30,000 for the tax year.
- Dedicated Research – Provides a credit of 35 percent of a cash donation of $200,000 or more to the Dedicated Research Investment Fund, which is administered by the Louisiana Board of Regents. The Board of Regents must certify that the person is qualified for the credit, and a copy of the certification must be attached to the return.
- New Jobs Credit – Provide a credit to employers who establish or expand a business in the state. A schedule that includes the calculation of the credit must be attached to the return and must include the name, address, and Social Security Number of each new employee; highest number of full-time and qualified part-time employees during the previous year; highest number of full-time and part-time employees during the current year; number of new employees hired for new jobs created during this taxable year; and amount of credit carried forward from the previous year.
- Refund by Utilities – Provides a credit for certain court ordered refunds made by utilities to its customers.
- Eligible Re-entrants – Provides a credit to a taxpayer who employs an eligible re-entrant in Louisiana. An eligible re-entrant is defined as a person who has been convicted of a felony and who has successfully completed the Intensive Incarceration Program, as provided in R.S. 15:574.4.
- Neighborhood Assistance – Provide a credit for an entity engaged in the activities of providing neighborhood assistance, job training, education for individuals, community services, or crime prevention in Louisiana. The credit is for up to 70 percent of the amount contributed for investment in programs approved by the Commissioner of Administration and the credit shall not exceed $250,000 annually.
- Cane River Heritage – Provides a credit for a heritage-based cottage industry located or to be located in the Cane River Heritage Area Development Zone. The taxpayer must enter into a contract with the Louisiana Department of Culture, Recreation, and Tourism, and a copy of the contract must be attached to the return.
- LA Community Economic Development – Provides a credit for money donated, contributed, or represented by a sale below cost by the taxpayer to a certified community development corporation or a certified community development financial institution. The credit must be certified by the Louisiana Department of Economic Development, and a copy of the certification must be attached to the return.
- Motion Picture Investment – Provides a credit for an individual taxpayer residing in Louisiana who invests in a state-certified, motion picture production. Taxpayers taking this credit may attach Form R-10611, available on LDR’s website, as documentation for this credit.
- Research and Development – Provides a credit for any taxpayer who claims a federal income tax credit under 26 U.S.C. §41(a) for increasing research activities. Use this code for Research and Development credits earned for expenditures made in tax years beginning before January 1, 2009. See Revenue Information Bulletin 09-020 on LDR’s website.
- Historic Structures – Provides a credit if the taxpayer incurs certain expenses during the rehabilitation of a historic structure that is located in a Downtown Development District or cultural product district. Refer to Revenue Information Bulletin 06-002 on LDR’s website.
- Digital Interactive Media – Provides a credit to individuals for the investment in businesses specializing in digital interactive media. Taxpayers must apply to the Louisiana Department of Economic Development to receive certifi cation. A copy of the certifi cation of the credit must be attached to the return.
- Motion Picture Employment of Resident – Provides a credit for the employment of residents of Louisiana in connection with the production of a motion picture. The credit may flow to an individual via a partnership, limited liability company, Subchapter S Corporation, or other entities. Refer to Revenue Information Bulletin 05-005 on LDR’s website.
- Capital Company – Provides a credit for any person who invests in a certified Louisiana Capital Company. This credit must be approved by the Commissioner of the Louisiana Office of Financial Institutions. A copy of your certification must be attached to the return.
- LA Community Development Financial Institution (LCDFI) – Provides a credit for certain investments in an LCDFI to encourage the expansion of businesses in economically distressed areas. The Louisiana Office of Financial Institutions administers this program.
- New Markets – Provides a credit if the taxpayer makes certain qualified low-income community investments, as defined in Section 45D of the Internal Revenue Code. The taxpayer must be certified by the Louisiana Department of Economic Development and approved by LDR. Information on the program investment limits are frequently posted as Revenue Information Bulletins on LDR’s website.
- Biomed/University Research – Provides a credit to persons who establish research activities either in a Biomedical or a University Research and Development Park. The taxpayer must enter into a contract with the Louisiana Department of Economic Development and a copy of the contract showing the credit granted must be attached to the return.
- Tax Equalization – Provides a credit for tax equalization for certain businesses locating in Louisiana. The taxpayer must enter into a contract with the Louisiana Department of Economic Development and a copy of the contract showing the credit granted must be attached to the return.
- Manufacturing Establishments – Provides a credit to certain manufacturing establishments that have entered into a contract with the Louisiana Department of Economic Development. A copy of the contract showing the credit granted must be attached to the return.
- Enterprise Zone – Provides a credit for private sector investments in certain areas that are designated as “Enterprise Zones.” The taxpayer must enter into a contract with the Louisiana Department of Economic Development and a copy of the contract showing the credit granted must be attached to the return.