What research activities do not qualify for Louisiana's R&D Credit?

The following research activities are specifically excluded by statute:

  1. Research undertaken outside Louisiana.
  2. Research conducted in the social sciences, arts or humanities.
  3. Ordinary testing or inspection of materials or products for quality control.
  4. Market and consumer research.
  5. Research relating to style, taste, cosmetic or seasonal design.
  6. Advertising and promotional expenses.
  7. Management studies and efficiency surveys.
  8. Computer software for internal use of the taxpayer, unless it meets additional tests.
  9. Research to locate and evaluate mineral deposits, including oil and gas.
  10. Acquisition and improvement of land and of certain depreciable or depletable property used in research (including the annual depreciation deduction).
  11. Research conducted after the beginning of commercial production.
  12. Research related to adaptation of an existing business component.
  13. Research related to duplication of an existing business component from a physical inspection, plans, blueprints, detailed specifications, etc.
  14. Funded research — Any research funded by any grant, contract, or otherwise by another person (or governmental entity).
  15. Professional Service Firms, Custom Manufacturing and Custom Fabricating.