About this programme
The Research and Development Tax Credit, run by Louisiana Economic Development (LED), gives businesses with operating facilities in Louisiana a state tax credit on qualified research expenditures incurred in the state. The credit is up to 30% of qualified research spending, with no cap and no minimum requirement.
Only research and development actually conducted in Louisiana qualifies. Professional services firms and custom manufacturing or fabricating businesses are not eligible unless they hold a pending or issued U.S. patent related to the claimed expenses, or are specifically invited to apply by the LED Secretary.
How it works
Qualified research must meet all four requirements of IRC Section 41(d)(1): it must be a business deduction, involve a technological discovery, be intended to develop a new or improved business component, and have 80% or more of the research activity involve a process of experimentation.
Qualified expenses include wages, supplies, and contract research costs, though only 65% of Louisiana expenses paid to outside consultants qualify.
The credit is claimed on your Louisiana income tax return for the year the qualified research expenses were paid or incurred, or it can be carried forward for up to 5 years.
If the credit allocation is capped in a given period, complete applications already on file are considered first when the allocation period reopens.
Who can apply
Any company with operating facilities in Louisiana that incurs qualified R&D expenditures in the state.
Professional services firms and custom manufacturing/fabricating businesses must hold a pending or issued U.S. patent tied to the claimed expenses, unless invited to apply by the LED Secretary.
How to apply
- Choose the correct application type: Form 6765 for an increase in Louisiana R&D at businesses with 50 or more employees, LQRE-6765 for businesses with fewer than 50 employees, or the SBIR/STTR application track.
- Complete the online application and submit it with the required fee and documentation.
- LED staff review the submission and present it to LED's review panel.
- You receive an approval or denial notification by email, and the Louisiana Department of Revenue is notified of certified credits.
- If approved, file or amend your state income tax return to claim the credit.
Documents you’ll typically need
- Form 6765 (50+ employees) or LQRE-6765 (fewer than 50 employees)
- SBIR/STTR application, where applicable
- Supporting documentation of qualified research expenses
Frequently asked
How large is the credit?
Up to 30% of qualified research expenditures incurred in Louisiana, with no cap and no minimum requirement.
How long does approval take?
Typically 3 to 6 months.
Is there a filing deadline?
Applications must reach LED by the applicable statutory deadline, generally within one year of the date the expense was incurred (for example, tax year 2025 expenses are due by 12/31/26).
What if credits are capped when I apply?
Complete applications already on file are considered first when the allocation period reopens.
Can I carry the credit forward if I can't use it all in one year?
Yes, unused credit can be carried forward up to 5 years.
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All 10 programmes in Louisiana →
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.