§2353.  Technology Commercialization Credit Program; establishment; qualifications; administration

A.  Qualifying individuals or businesses that invest in the commercialization of Louisiana technology in Louisiana may earn, apply for, and be granted a tax credit on any income or corporation franchise tax liability.  Such credits shall be earned and granted for a period of not less than four tax years as provided in this Part.  The administration of applications for these credits and the provision of these credits shall be called the Technology Commercialization Credit Program.

B.(1)  The Technology Commercialization Credit Program shall be implemented and administered by the Department of Economic Development.  In compliance with the Administrative Procedure Act and this Part, the department shall adopt and promulgate such rules as are necessary for the efficient and effective administration of this program in keeping with the purposes for which it is enacted.

(2)  In providing for the implementation and administration of the program, the department shall work closely with the secretary of the Department of Revenue.

(3)  Such rules shall include provisions for:

(a)  The Department of Economic Development to certify the eligibility of any taxpayer applicant for receipt of the tax credit provided for in this Part and the qualification of any taxpayer claimant to claim the credit against state tax liability.

(b)  The presentation of a taxpayer's eligibility certification and any other documentation required to be applied for and earn or claim a credit.

(c)  The sale of certified technology commercialization credits to other taxpayers.

C.(1)  To qualify for a technology commercialization credit for four tax years all of the following qualifications shall be required by each applicant:

(a)  The investment in commercialization costs, including investment by purchase or lease of machinery and equipment which is placed into and maintained in service in Louisiana that is directly related to the production of technology or is used to produce resources essential to the production of technology.

(b)  An investment, pursuant to Subparagraph (a) of this Paragraph that equals not less that two hundred fifty thousand dollars in the first taxable year the machinery and equipment is placed in service in Louisiana.

(c)  An investment, pursuant to Subparagraph (a) of this Paragraph, of not less than two million dollars by the end of the fourth tax year after the first tax year in which the machinery and equipment is placed in service in Louisiana.

(2)  To qualify for a technology commercialization credit for four additional years immediately succeeding the first four years as provided in Paragraph (1) of this Subsection, the applicant shall invest not less than two hundred fifty thousand dollars in each succeeding tax year in commercialization costs for the production of technology or the production of resources essential to the production of technology.

D.(1)  No technology commercialization credit shall be earned, applied for, and granted for more than eight consecutive tax years with regard to the same business location.

(2)  No technology commercialization credit shall be earned, applied for, and granted in a year in which the machinery and equipment in which an investment was made is not in regular service in Louisiana.  The interruption of such service, as determined pursuant to rule, shall terminate the eligibility for any further credit pursuant to this Paragraph in any subsequent tax year.

(3)  No technology commercialization credit shall be earned, applied for, and granted in a tax year for an investment for which any other tax credit based on research and development, as defined pursuant to rule, is provided by the state.

E.(1)  A taxpayer who earns, applies for, and is granted a credit pursuant to Paragraph (C)(1) of this Section who fails to meet the requirement of not less than two million dollars in investment in commercialization costs, including machinery and equipment by the end of the fourth tax year after the first year in which the machinery and equipment is placed in service shall repay to Louisiana the amount of all technology commercialization credits claimed and credited against tax liability, shall forfeit all other technology commercialization credits earned and retained for future use, and shall be liable to the state for the price obtained for any such credits sold.

(2)  A taxpayer who earns, applies for, and is granted a credit pursuant to Paragraph (C)(2) of this Section who fails to meet the requirement of not less than two hundred fifty thousand dollars of investment by the end of each year in which a tax credit is granted shall not be eligible for any tax credit in that taxable year, shall repay any amounts allowed as a credit for that year, and shall cease to qualify for any further such credit for investment in that location.

Acts 2002, 1st Ex. Sess., No. 8, §1, eff. July 1, 2002.