Louisiana § RS 47:6107 - Business-supported child care

§ RS 47:6107. Business-supported child care

            A.(1) There shall be a refundable credit against any Louisiana income tax for the eligible business child care expenses supported by a business. The total amount of credits granted pursuant to this Paragraph shall not exceed the amount provided for in Subsection C of this Section. The credit shall be the following percentages of eligible business child care expenses depending upon the quality rating of the child care facility to which the expenses are related or the quality rating of the child care facility the child attends:

                  Quality Rating of Child Care Facility                  Percentage of eligible business

                                                                                                child care expenses

                  Five star                                                                 50%

                  Four star                                                                40%

                  Three star                                                               30%

                  Two star                                                                0%

                  One star or nonparticipating facility                     0%

            (2) There shall be an additional refundable credit against any Louisiana income tax for the payment by a business of fees and grants to child care resource and referral agencies not to exceed five thousand dollars per tax year.

            B. The credits provided for in this Section shall be allowed against income tax for the taxable period in which the credit is earned. If the tax credit exceeds the amount of such taxes due, then the unused credit shall be refunded as provided for in R.S. 47:6108.

            C.(1) For purposes of credits granted pursuant to Paragraph (A)(1) of this Section, the maximum amount of tax credits that may be granted for a calendar year, referred to hereafter in this Subsection as the "credit cap", shall be as follows:

            (a) For the calendar year beginning January 1, 2026, and ending December 31, 2026, the credit cap shall be one million dollars.

            (b) Beginning January 1, 2027, and each January first thereafter, the credit cap for the calendar year shall be established in accordance with the following provisions:

            (i) If the secretary of the Department of Revenue determines that less than eighty percent of the credit cap amount authorized for the preceding calendar year was granted, then the credit cap for the current calendar year shall not be adjusted.

            (ii) If the secretary of the Department of Revenue determines that at least eighty percent of the credit cap amount authorized for the preceding calendar year was granted, then the credit cap for the current calendar year shall be increased by one million dollars.

            (c) In no event shall the credit cap for any calendar year exceed five million dollars.

            (2) No later than July first of each year, the secretary of the Department of Revenue shall publish on the department's website a notice of the credit cap amount authorized for the calendar year in which the notice is published. However, when the credit cap for a calendar year reaches five million dollars, the secretary shall no longer be required to publish notice of the credit cap amount on the department's website.

            (3)(a) Beginning January 1, 2027, taxpayers shall apply for the tax credit on a form and in the manner prescribed by the secretary of the Department of Revenue. The application period shall begin on January first and conclude on February twenty-eighth of each calendar year following the calendar year in which the credit is deemed earned. Eligible applications shall be approved by the department on a first-come, first-served basis as determined by the date and time that a completed application is received by the department. An application shall not be considered complete until all information requested by the department has been received. A taxpayer is deemed eligible upon satisfactorily demonstrating that it has met the requirements of this Section, where applicable.

            (b) If the aggregate amount of applications received on a single business day exceeds the total amount of available tax credits, the secretary of the Department of Revenue shall approve tax credits on a pro rata basis. In the event the taxpayer is subject to proration, the taxpayer shall only be eligible for a credit equal to the pro rata amount for the tax period deemed eligible.

            Acts 2007, No. 394, §1, eff. July 10, 2007; Acts 2015, No. 357, §1, eff. June 29, 2015, Acts 2024, 3rd Ex. Sess., No. 5, §3, eff. Jan. 1, 2025; Acts 2024, 3rd Ex. Sess., No. 6, §1, eff. Jan. 1, 2026; Acts 2025, No. 454, §§1, 2, eff. Jan. 1, 2026.

            NOTE: See Acts 2024, 3^rd Ex. Sess., No. 5, §4, regarding applicability to franchise tax periods beginning on or after Jan. 1, 2026.