Key figures
Louisiana advisory
2026, with sources
- R&D tax credit, fewer than 50 employees
- 30% of the excessOf Louisiana research expenses above a base of 50% of the prior three years’ average; 10% at 50–99 employees, 5% at 100+.
- SBIR / STTR credit
- 30% of the awardOf a federal Phase I or II award received in the year; these credits may be sold to another Louisiana taxpayer.
- R&D credit cap
- $12 million a fiscal yearAggregate claims on returns from July 1, 2025, first come first served; a capped claim rolls to the next fiscal year with priority.
- R&D application deadline
- 12 months after year endOne year after Dec 31 of the year the expense was incurred; tax year 2025 is due Dec 31, 2026.
The research credit runs through LED
Louisiana’s R&D credit is administered by Louisiana Economic Development, not claimed straight on the return. Companies with fewer than 50 employees apply on Form LQRE-6765; larger ones use a federal Form 6765-based application. LED says certification typically takes three to six months, and only then can the credit be claimed against Louisiana income tax, with a five-year carryforward for anything unused. Contract research counts at 65% of the Louisiana expense.
The rate in R.S. 47:6015 depends on headcount, counted across all affiliated companies: 30% for fewer than 50 employees, 10% for 50 to 99 and 5% for 100 or more — each applied only to Louisiana qualified research expenses above a base amount. The base is 50% of the prior three years’ Louisiana average for a company under 50 people and 80% for larger ones. A company that receives a federal SBIR or STTR Phase I or II award instead earns 30% of the award, and that credit can be sold to another Louisiana taxpayer.
Since July 1, 2025, claims on returns are capped at $12 million statewide each fiscal year, first come first served; a claim turned away because the cap was reached can be used on an original return in the next fiscal year, with priority. No credit is allowed for research spending incurred after December 31, 2029.
Worked example: what the base does to the credit
A 20-person company in New Orleans spent $400,000, $500,000 and $600,000 on Louisiana research in the three prior years, an average of $500,000, and $800,000 this year. Its base is 50% of $500,000, or $250,000. The credit is 30% of the $550,000 above the base: $165,000, certified by LED and usable over five years. A company with no Louisiana research history has a base of zero and earns 30% of the full spend.
Professional services firms and custom manufacturers or fabricators are shut out unless they hold a pending or issued US patent tied to the research, or LED’s secretary invites them in.
Where founders go wrong in Louisiana
Louisiana changed more in 2025 than almost any other state, so playbooks written before then are out of date on rates, the franchise tax and the sales tax base at once.
- Treating SaaS as untaxable because it was before 2025 — state and parish tax now apply to it.
- Registering with the Department of Revenue only, and missing parish registration once the company has a Louisiana location.
- Keeping a franchise tax accrual running into 2026.
- Filing 1099-NEC forms with the IRS on paper and assuming Louisiana received them through CF/SF.
Remote hires and nexus
One employee working from Louisiana gives the company a Louisiana withholding and unemployment account and usually an income-tax filing obligation. Because Louisiana now taxes SaaS, the same company may also have a sales tax question from its customers there — the $100,000 threshold for remote sellers stops applying once the company has physical presence through that employee.
The federal baseline
This page covers what Louisiana adds. The federal rules underneath it apply here too.
Common questions
Is the Louisiana R&D credit worth claiming?
It can be, but it is smaller than the headline and it is now a queue. For a company with fewer than 50 employees the credit is 30% of Louisiana research expenses above a base — half the average of the three prior years — so a first year of research earns the most and flat spending earns 15% of the year’s total. Louisiana Economic Development certifies it, the company applies within a year after the tax year ends, and from July 1, 2025 claims on returns share a $12 million statewide cap each fiscal year, first come first served. LED says complete applications on file are considered first when the next allocation period opens.
What happens to a Louisiana founder’s stock sale?
Louisiana has a flat 3% individual income tax from 2025, and the Louisiana return starts from federal adjusted gross income — so a gain excluded federally as QSBS generally never enters the Louisiana calculation. A taxable gain is taxed at 3% for a resident. Confirm the treatment for the year of sale, because Louisiana has changed its individual tax twice since 2022.
Advisory next door
- TXTexas advisoryFrom 2026 Texas has a new R&D credit, refundable to companies under the no-tax-due threshold. With no personal income tax, QSBS and PTE elections are federal questions.
- ARArkansas advisoryArkansas incentives are application-based through AEDC. Ten-year NOLs and no bonus depreciation make Arkansas losses something to model, not assume.
- MSMississippi advisoryMississippi is cutting its individual rate to 4.0% in 2026 and 3.0% by 2030, repealing its franchise tax from 2028, and since 2023 exempting SaaS hosted outside the state; its quirks are throwback and its own 1099 threshold.
Founder guides on this
- R&D taxThe R&D tax credit and Section 174A for startupsEngineering salaries can earn a federal R&D credit against payroll tax, and Section 174A lets you deduct US research again. What qualifies, what to track.
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
More of the Louisiana guide
- AccountingAccounting and state tax in LouisianaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in LouisianaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in LouisianaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in LouisianaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in LouisianaRegistering to do business, annual reports, franchise tax and the filing calendar
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.