Making Sense of Louisiana’s R&D Tax Credits
In December 2009, the BioInnovation Center had the opportunity to host one of the live webinars that it frequently broadcasts online via its website. “Understanding the Revamped Louisiana R&D Tax Credit” featured speaker Susan Bigner, Business Development Officer of Louisiana Economic Development, who explained the R&D tax credits available to the state, and some of the recent changes affecting them. Such R&D tax credits offer great promise and huge benefits to grow Louisiana’s economy through its research and development activities.
“I think in terms of bringing in an expert to talk about the subject, we couldn’t have found a better person to join us,” said Steve Ceulemans, Commercialization Coordinator at the BioInnovation Center, in his introduction. “Susan is not only on a technical level with Louisiana Economic Development that is very familiar with these credits, she’s also the key administrator that implements a lot of these benefits as they are developed.”
The Louisiana Research & Development Tax Credit Program has been in effect since 2003, and the December seminar explained retroactive tax credit applications, as well as new rules that expanded and revised these credits in 2009.
“I’m really excited about the 2009 tax credit legislation,” Bigner said in her presentation. Beginning in the 2009 fiscal year, the tax credit was increased to 40 percent for SBIR grants, and is refundable. “That money goes back into your company, and helps your company to do research and development.”
The 2009 revisions to the R&D tax credits will also be a specific help to smaller businesses. As Bigner explained, companies that employ less than 50 Louisiana residents can take advantage of the state R&D tax credit without having to file for the federal tax credit. “Previous rules were leaving out the small companies-the companies that don’t have the ability to go out and pay big bucks to CPAs and auditors,” Bigner said.
Bigner took questions from the audience throughout the presentation, making the seminar uniquely practical for attendees with specific questions about the nuances of applying for these credits. Handouts included not just Bigner’s presentation, but also an R&D tax credit fact sheet, specific legislation on the credits, and even an application form.
As a biotechnology and medicinal-science oriented incubator, the BioInnovation Center works continually with companies, medical centers and universities in translating discoveries into developments and into products, ultimately helping produce start-up companies. Educating interested members of the community is a major part of hosting and broadcasting such events. “I’ve got companies coming up to me and saying, ‘I had no idea!’” Bigner noted.
“I want to make sure that you get the best for your dollar,” she said. “Let’s keep the research here-let’s keep it going.”
Along with the BioInnovation Center, the R&D Tax Credit webinar was hosted by the Greater New Orleans Biosciences Economic Development District; Louisiana Economic Development; the Louisiana SBDC; the Clinical and Translational Research, Education and Commercialization Project; the Louisiana Vaccine Center; and the Southern Louisiana Institute for Infectious Disease Research.
