BRAC seminar: Tax credit for small business hinges on R&D
The Louisiana Research and Development tax credit can provide a rebate credit of up to 40% for Louisiana small business R&D expenditures, according to tax credit specialist Adam Weems. The state tax credit is available to Louisiana-owned and operated businesses with fewer than 50 employees. Larger companies wishing to receive a Research and Development Tax Credit must also qualify for the federal R&D tax credit. "Most of our clients that have used [the R&D tax credit] have just used the state credit. The federal process is more difficult," says Thomas E. Freel, vice president of LaPorte CPAs & Business Advisors. To be eligible for the credit, the company must be developing a new product or service. "You're not trying to make a blue car as opposed to a red car," Weems says. Rather, the research must be technical and somewhat experimental in nature. Weems, managing director at TRCG Advisors, a business that manages tax credits and incentives for companies across the country, gave details about the tax credit at a small business education seminar hosted by BRAC.—Frederick Holl
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