Nonrefundable Tax Credits:
CREDIT FOR NET INCOME TAX LIABILITIES PAID TO OTHER STATES – (R.S. 47:33) If you were a resident of Louisiana for the entire year, you are allowed a credit for the net income tax liabilities paid to other states of the United States. Please note the “net income tax liability” is generally not the amount withheld. No credit may be claimed for taxes paid to cities, the District of Columbia, or foreign countries. The credit allowed on your Louisiana return must be for the same taxable year for which the tax was paid to other states or in the succeeding taxable year.
CREDIT FOR CERTAIN DISABILITIES – (R.S. 47:297(A)) A credit of $100 against the tax is permitted for the taxpayer, spouse, or dependent who is blind, deaf, mentally incapacitated, or has lost the use of a limb. Only one credit is allowed per person. The disability must exist at the end of the taxable year, or if death occurred during the taxable year, at the date of death. If you are claiming this credit for the first time, a physician’s statement certifying the disability is required. If one is not submitted with the return, it will be requested later. For purposes of this credit, BLIND is defined as one who is totally blind or whose central field of acuity does not exceed 20/200 in the better eye with correcting lenses or whose visual acuity is limited to a field no greater than 20 degrees. MENTALLY INCAPACITATED is defined as one who is incapable of caring for himself or performing routine daily health requirements due to his mental condition. LOSS OF LIMB is defined as one who has lost one or both hands at or above the wrist or one or both feet at or above the ankle. This credit also applies if use of the limb or limbs has been permanently lost. DEAF is defined as one who cannot understand speech through auditory means alone (even with the use of amplified sound) and must either use visual means or rely on other means of communication.
CREDIT FOR CONTRIBUTIONS TO EDUCATIONAL INSTITUTIONS – (R.S. 47:37) Taxpayers who donate computer equipment to educational institutions are allowed a credit of 40 percent of the value of the property donated against their Louisiana income tax. The recipient certifies the donation or contribution of property by using the Certificate of Donation, Form R-3400. This form is available on the Department’s website at www.rev.state.la.us. The completed certification form must be attached to the individual income tax return.
CREDIT FOR CERTAIN FEDERAL CREDITS – (R.S. 47:297(B))Taxpayers are allowed a credit of 10 percent of the federal credits for foreign taxes, child and dependent care expenses, and for the elderly or disabled taken on the federal return. In addition a credit of 10 percent of any investment tax credit or jobs credit computed on federal Form 3800 is allowed. If the credit was not utilized on the federal return because of the alternative minimum tax, you must reduce this amount by the portion of the credit that was not utilized.
OTHER CREDITS – [A] Family Responsibility Program Credit (R.S. 47:297(F) & 46:449) Individuals who have a contract with the Louisiana Department of Social Services to contribute to medical care in the family responsibility program are eligible for a credit of 1/3 of their contribution, limited to $200 per year. [B] Louisiana Capital Companies Credit (R.S. 51:1924) Louisiana law provides for a credit for investment in Louisiana Capital Companies. [C] Dedicated Research Investment Fund Credit (R.S. 51:2203) A credit of 35 percent of a cash donation of $200,000 or more to the Dedicated Research Investment Fund is available. The Louisiana Board of Regents must certify the credit. [D] Credit for Employment of the Previously Unemployed (R.S. 47:6004) Business proprietors are possibly eligible for a credit for hiring the previously unemployed. [E] Credit for Converting Vehicles to Alternative Fuel Usage (R.S. 47:38) A credit is available for conversion of vehicles to alternative fuels. [F] Small Town Doctor’s Credit (R.S. 47:297(H)) Doctors affiliated with small town community hospitals may qualify for a tax credit. [G] Credit for a Dentist Who Maintains a Primary Practice in a Dental Health Professional Shortage Area (R.S. 47:297(H)(2) & (R.S. 47:305(D)(1)(t)) [H] Louisiana Basic Skills Training Tax Credit (R.S. 47:6009) Employers who pay for training to bring employees’ reading, writing, or mathematical skills to at least the 12th grade level may be entitled to a credit of $250 per participating employee. [I] Credit for Gasoline and Special Fuels Taxes (R.S. 47:297(C)) A credit is provided for gasoline and special fuels taxes paid for operating or propelling any commercial fishing boat. [J] Credit for Educational Expenses Incurred for a Degree Related to Law Enforcement (R.S. 47:297(J)) A credit is provided for certain law enforcement officers and certain employees of the Department of Public Safety and Corrections for certain post-secondary educational expenses incurred in the pursuit of an undergraduate degree related to law enforcement. [K] Credit for the Employment of Certain First-Time Drug Offenders (R.S. 47:297(K)) A credit is available for the employment of certain first-time drug offenders. [L] Bone Marrow Donor Expenses Credit (R.S. 47:297(I)) An employer credit is provided for expenses associated with a bone marrow donor program. [M] Credit for Purchase of a Bullet Proof Vest (R.S. 47:297(L)) Qualified law enforcement officers and certain employees of the Department of Public Safety and Corrections are eligible for a credit for the purchase of a bulletproof vest or $100, whichever is less. [N] Credit for Donations to Assist Qualified Playgrounds (R.S. 47:6008) A taxpayer may claim up to $1000 or 50 percent of the value of a qualified donation to a qualified playground. [O] Credit for Employment Related Expenses for Maintaining a Household for Certain Disabled Dependents (R.S. 47:297.2) A credit is allowed for persons maintaining a household that includes dependents who are physically or mentally disabled. [P] Motion Picture Investor Tax Credit (R.S. 47:6007) Louisiana domiciled taxpayers may take a tax credit for investments in state certified motion picture productions. [Q] Employment Tax Credit (R.S. 47:1125.1) A motion picture production company may be entitled to a tax credit for thee employment of Louisiana citizens. [R] Qualified Recycling Equipment Credit (R.S. 47:6005) A taxpayer who purchases qualified recycling equipment may be entitled to a credit. [S] Rehabilitation of Historic Structures (Act 60 of the 2002 Regular Session) A taxpayer may be eligible for a credit as a result of incurring certain expenses during the rehabilitation of a historic structure located in a downtown development district. [T]New Markets Credit (Act 66 of the 2002 Regular Session) A credit may be passed through certain legal entities to individuals. See Revenue Information Bulletin 01-004 on the Department’s website and Act 32 of the 2002 Regular Session. A schedule must be attached stating what entity(ies) paid the tax and obtained the credit on the individual’s behalf. [U] Louisiana Quality Jobs Program Credit (R.S. 51:2452 et. seq) [V] Enterprise Zone Tax Exemption Contract (R.S. 51:1782 et seq)
CREDIT FOR CERTAIN CHILD CARE EXPENSES - (R.S. 47:297.4) A credit against the tax is allowed for child care expenses for which a resident individual claims a child care tax credit on the federal income tax return. The credit is a percent of the federal credit, with the percent of the federal credit allowed depending upon the individual's federal adjusted gross income.