Technology Commercialization Credit and Jobs Program
The Technology Commercialization Tax Credit provides a 40% refundable tax credit for companies that invest in the commercialization of Louisiana technology and a 6% payroll rebate for the creation of new, direct jobs.
The Tax Credit Incentive is open to individuals or businesses that invest in the commercialization of Louisiana technology in Louisiana. The technology must be created by a Louisiana business and researched by a Louisiana university or college.
A company must submit the completed Technology Commercialization eligibility application and fee. The eligibility application should include:
- Description of technology to be commercialized
- Agreement with university
- Business plan
- Estimate of commercialization cost
- Estimated number of new jobs, wages and health benefits created (if any)
Note: Eligibility application is due by December 31 of the year the company is seeking tax credits.
1. Application is presented to the Louisiana Economic Development review panel.
2. Notification of the decision will be sent via email.
3. Louisiana Department of Revenue is notified of the eligibility.
4. Submit Technology Commercialization application for credits.
Q: My company is currently commercializing a new technology but has yet to obtain an agreement with an in-state university. Will we be eligible for the Technology Commercialization Program?
A: NO. The company will not be eligible for the Technology Commercialization Program. There must be an agreement with a university or school to commercialize the technology.
Q: My company has an agreement with Louisiana State University to commercialize a new vaccine.The projected schedule will be at least two years. When will my company be eligible for tax credits?
A: The eligibility period begins in the tax year the company was deemed eligible.The company will have a five-year period to claim the Technology Commercialization credits. For example, a company certified in tax year 2009 will have until the end of 2013 to apply for Technology Commercialization credits.
Q: My company is commercializing a new technology with Tulane University. The total cost of commercialization in the first year is $432,000. How much will the Technology Commercialization credit be?
A: The maximum credit is $100,000, or 40% of the investment to be commercialized, not to exceed $250,000.
Q: My company, Davis Pharmaceutical, has an agreement with a local university to commercialize a new biotechnology. We submitted the eligibility application in February 2012 but started incurring commercialization cost in 2011. Can the eligibility period begin in tax year 2011?
A: NO. The eligibility application is due by December 31 of the year the company is seeking tax credits.
Thank you for your interest in Louisiana's Technology and Commercialization Tax Credit program. Below is a list of Frequently Asked Questions about the program.
Q: What is an eligibility application?
A: An application submitted prior to the end of the first tax year in which the technology will be commercialized. No fee is required.
Q: Who must the taxpayer be in association with to be eligible for the Technology Commercialization Credit & Jobs Program?
A: An accredited Louisiana university, college or technical school.
Q: What is commercialization?
A: The process begins after an intellectual property has been reduced to practice and is being developed into a marketable asset.
Q: Does it include the research done prior to commercialization?
A: Technology Commercialization as intended for this act is Louisiana technology created by a Louisiana company that is researched by a Louisiana university, college or technical school for commercialization; or technology created at a Louisiana university, college or technical school that is licensed by a Louisiana company to be commercialized by the company; or Louisiana technology researched by a governmental research center in Louisiana.
Q: What are commercialization costs?
A: Commercialization costs include machinery, equipment, licenses, patents, copyrights, payments to Louisiana universities, colleges or technical schools through a research agreement or license agreement, and/or payments to third-party research centers in Louisiana.
Q: If a research agreement only contains salaries and supplies, is it eligible? Can you qualify if only doing research through a university without any other commercialization costs?
A: YES. Salaries and supplies are eligible if they are included in a research agreement because the agreement is considered a commercialization cost.
Q: Does the taxpayer have to be domiciled or have an office in Louisiana?
A: The taxpayer must be located in Louisiana to receive the tax credit.
Q: What is the percentage rate for the refundable tax credits for Technology Commercialization Tax Credits?
A: 40% of the investment necessary to commercialize the intellectual property, not to exceed $250,000.
- Complete the eligibility application and submit the fee and all additional documentation either online or by mail.
- LED reviews the application and required documentation.
- The business will be notified of the approval or denial and Louisiana Department of Revenue will be notified.
- If approved, the business completes a Technology Commercialization application to LED for credits.
- The business is notified of the amount of tax credits awarded and the Louisiana Department of Revenue is notified.
- The business amends the Louisiana Department of Revenue tax return to apply the credits.
- The Louisiana Department of Revenue issues the refund once all Louisiana liabilities have been resolved.
Shamelda PeteBusiness Development Officer