Who qualifies for the military pay exclusion?

If you served 120 or more consecutive days on active duty as a member of the armed services of the United States, the compensation paid to you and/or your spouse by the armed services while serving outside of Louisiana is exempt from Louisiana income tax.

Example: On January 15, 2013, you went on active duty and continuously remained on active duty at least through May 14, 2013 (120 days). Up to $30,000 of compensation paid to you and/or your spouse by your branch of the armed services may be exempt from Louisiana income tax. The exempt portion is that amount of compensation earned outside of Louisiana during and after 120 plus consecutive days of active duty. In the above example, if you served 40 days in Louisiana and the remainder of duty outside of Louisiana, income from the 41st day forward is exempt once you have served 120 plus consecutive days of active duty.

Only $30,000 total of qualified military compensation paid to you and/or your spouse is excludable.

Orders, including endorsements, that prove your 120 consecutive days of active duty service outside Louisiana should be faxed to the Louisiana Department of Revenue's electronic filing attachment number: 225-231-6221. The attachment must have your name, account number, and tax filing period printed at the top of the first page of the fax to ensure that the attachment is properly uploaded to your account. A cover page can be used, but it is not required.

What other miscellaneous credits can I enter on this screen?

Certain taxpayers, such as those with business income, may qualify for other miscellaneous credits. If a taxpayer meets the preliminary qualifications for that credit, such as having business income or being a certain filing status, that credit will be displayed as an option on this screen. If you are e-filing your return, be sure to keep any supporting documents for your records. Here is a list of the other credits and some details on each:
  • Premium Tax: Credit for premium taxes paid during the preceding 12 months by an insurance company authorized to do business in Louisiana. The credit may be passed to individuals through certain legal entities, such as a partnership.
  • Commercial Fishing: Credit for the amount of gasoline and special fuels taxes paid for operating or propelling any commercial fishing boat.
  • Family Responsibility: Credit for the amount contributed in a family responsibility program under the provisions of R.S. 46:449. The amount of this credit shall not exceed 33.3 percent of the contribution or $200 per year, whichever is less.
  • Small Town Doctor / Dentist: Credit for a certified medical doctor possessing an unrestricted license from the State of Louisiana to practice medicine, or for a dentist licensed by the State of Louisiana to practice dentistry in certain geographic areas of Louisiana. The credit is limited to $5,000.
  • Bone Marrow: Credit for employers who are authorized to do business in the state, who incur bone marrow donor expense by developing a bone marrow donation program, educate employees related to bone marrow, make payments to a health care provider for determining tissue types of potential donors, and pay wages to an employee for time related to tissue typing and bone marrow donation. The wage expense used to obtain the credit cannot be deductible as an expense for income tax purposes. The amount of the credit is equal to 25 percent of the bone marrow donor expense paid or incurred by the employer during the tax year.
  • Law Enforcement Education: Credit for certain law enforcement officers and specified employees of the Department of Public Safety and Corrections for specific post-secondary educational expenses incurred in the pursuit of an undergraduate degree related to law enforcement.
  • First Time Drug Offenders: Credit for a taxpayer who provides full-time employment to an individual who has been convicted of a first time drug offense, and who is less than 25 years of age at the time of initial employment.
  • Bulletproof Vest: Credit for the purchase of a bulletproof vest for certain law enforcement personnel as designated in the statute. The credit is limited to $100.
  • Nonviolent Offenders: Credit for a taxpayer who provides full-time employment to an individual who has been convicted of a first-time nonviolent offense, has completed a court-ordered program certified by the employee's probation officer, and has worked 180 days. A statement signed by both the employer and employee certifying the employee's full-time work status for the year must be attached to the return.
  • Owner of Newly Constructed Accessible Home: Credit for a taxpayer who owns a newly constructed one or two-family dwelling on which the homestead exemption is claimed. The dwelling must include certain accessible and barrier free design elements. The credit is for the lesser of $1,000 or tax, and is taken in the taxable year that the construction of the dwelling is completed. Form R-1089 must be attached to your return as documentation for this credit.
  • Qualified Playgrounds: Credit for donations to assist qualified playgrounds. The credit shall be an amount equal to the lesser of $1,000 or one-half of the value of the cash, equipment, goods, or services donated. Please contact the Department for information on qualifying for this credit.
  • Debt Issuance: Credit for the filing fee paid to the Louisiana State Bond Commission, which is incurred by an economic development corporation in the preparation and issuance of bonds.
  • Donations of Materials, Equipment, Advisors, Instructors: Credit for employers within the state for donations of the latest technology available in materials, equipment, or instructors to public training providers, secondary and postsecondary vocational-technical schools, apprenticeship programs registered with the Louisiana Department of Labor, or community colleges to assist in the development of training programs designed to meet industry needs. The credit is equal to 50 percent of the value of the donated materials, equipment, or services rendered by the instructor. When taken with other applicable credits, this credit cannot exceed 20 percent of the employer's tax liability for any taxable year.
  • Atchafalaya Trace: Credit for certain heritage-based cottage industries that have entered into a contract with the State Board of Commerce and Industry.
  • Organ Donation: Credit to offset certain expenses incurred by an individual and/or spouse for a living organ donation.
  • Household Expense: Credit for a person who maintains a household that includes one or more dependents who are physically or mentally incapable of caring for themselves.
  • Previously Unemployed: Credit for business proprietors are possibly eligible for hiring a previously unemployed person who participates in the Family Independence Work Program.
  • Recycling Credit: Credit for the purchase of certain equipment and/or service contracts related to recycling. The credit must be certified by the Louisiana Department of Environmental Quality and a copy of the certification must be attached to the return.
  • Basic Skills Training: Credit for employers who pay for training to bring employees' reading, writing, or mathematical skills to at least the 12th grade level. The credit is limited to $250 per participating employee, not to exceed $30,000 for the tax year.
  • New Jobs Credit: Credit for employers who establish or expand a business in the state.
  • Refund by Utilities: Credit for certain court ordered refunds made by utilities to its customers.
  • Eligible Re-entrants: Credit for the encouragement of the employment of full-time jobs in the state of Louisiana of re-entrants who have been convicted of a felony and who have successfully completed the Intensive Incarceration Program as provided for in R.S. 15:574.4
  • Neighborhood Assistance: Credit for an entity engaged in the activities of providing neighborhood assistance, job training, education for individuals, community services, or crime prevention in the state of Louisiana. The tax credit is limited to 70 percent of the actual amount contributed for investment in programs approved by the commissioner of administration or his successor. Such credit shall not exceed $250,000 annually.
  • Cane River Heritage: Credit for a heritage-based cottage industry located or to be located in the Cane River Heritage Area Development Zone. The taxpayer must enter into a contract with the Department of Culture, Recreation, and Tourism.
  • Community Economic Development: Credit for the amount of money donated, contributed, or represented by a sale below cost by the taxpayer to a certified community development corporation or a certified community development financial institution. The credit must be certified and approved by the Department of Economic Development.
  • Apprenticeship: Credit to employers for one dollar for each hour of employment of an eligible apprentice, limited to 1,000 hours for each eligible apprentice. An eligible apprentice is a person who has entered into a written apprentice agreement with an employer or an association of employers pursuant to a registered apprenticeship program or who is enrolled in a training program accredited by the National Center for Construction Education and Research. For more information regarding this credit, contact the Louisiana Workforce Commission.
  • Ports of Louisiana Investor: Credit to individuals to encourage investment in state port facilities in Louisiana. Taxpayers must apply to the Louisiana Department of Economic Development to receive certification.
  • Ports of Louisiana Import Export Cargo: Credit to individuals to encourage the use of state port facilities in Louisiana. The credit is based on the number of tons of qualified cargo imported and exported from or to manufacturing, fabrication, assembly, distribution, processing or warehousing facilities located in the state. Taxpayers must apply to the Louisiana Department of Economic Development to receive certification.
  • Motion Picture Investment: Credit for an individual taxpayer residing in Louisiana who invests in a state-certified, motion picture production.
  • Research and Development: Credit for any taxpayer who claims a federal income tax credit under 26 U.S.C. 41(a) for increasing research activities. Use this credit for Research and Development credits earned for expenditures made in tax years beginning before January 1, 2009.
  • Historic Structures: Credit given if the taxpayer incurs certain expenses during the rehabilitation of a historic structure that is located in a Downtown Development District.
  • Digital Interactive Media: Credit for the investment in businesses specializing in digital interactive media. Use this credit for Digital Interactive Media credits earned for expenditures made prior to January 1, 2012. Taxpayers must apply to the Louisiana Department of Economic Development to receive certification. A copy of the certification of the credit must be attached to the return. See Revenue Information Bulletin 12-017 on LDR's website.
  • Motion Picture Employment of Resident: Credit for the employment of residents of Louisiana in connection with the production of a motion picture. The credit may flow to an individual via a partnership, limited liability company, Subchapter S Corporation, or other entities.
  • Capital Company: Credit for any person who invests in a certified Louisiana Capital Company. This credit must be approved by the Commissioner of the Office of Financial Institutions.
  • LCDFI Credit: Credit to encourage the expansion of businesses in economically distressed areas.
  • New Markets: Credit if the taxpayer makes certain qualified low-income community investments.
  • Brownfields Investor Credit: Credit to individuals to encourage the cleanup, redevelopment, and productive reuse of brownfields sites in the state. The credit is obtained through the Louisiana Department of Economic Development and the Louisiana Department of Environmental Quality.
  • Motion Picture Infrastructure: Credit for an approved state-certified infrastructure project for a film, video, television, or digital production or postproduction facility. Taxpayers must apply to the Louisiana Department of Economic Development to receive certification.
  • Angel Investor: Credit for taxpayers who make third party investments in certified Louisiana entrepreneurial businesses on or after January 1, 2011. To earn the Angel Investor Credit, taxpayers must file an application with the Louisiana Department of Economic Development. See Revenue Information Bulletin 12-009 on LDR's website.
  • Biomed / University Research: Credit against the Louisiana individual income tax to persons who establish research activities either in a Biomedical or a University Research and Development Park.
  • Tax Equalization: Credit for tax equalization for certain businesses locating in Louisiana.
  • Manufacturing Establishments: Credit to certain manufacturing establishments that have entered into a contract with the Department of Economic Development.
  • Enterprise Zone: Credit against the Louisiana individual income tax for private sector investments in certain areas that are designated as "Enterprise Zones."

Do I qualify for a credit for income tax paid to another state?

If you were a resident of Louisiana, you are allowed a credit for the net income tax liabilities paid to one or more states of the United States provided that you have reported that income on your Louisiana return.
Please note the "net income tax liability" is generally not the amount withheld. You may not claim credit 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 the other state(s).

What are Louisiana tax payments? What do I enter on this screen?

  • Enter any estimated tax payments you made for 2013.
  • Enter any amounts credited from your 2012 return.
  • Enter any amount paid with extension requests.
Do NOT enter any amount of your 2013 Louisiana Income Tax withheld by your employer(s) as shown on any wage or tax statements.

How will contributions to the Wildlife Habitat & Natural Heritage Trust Fund be used?

This fund provides for the acquisition and management of lands used for state parks, state forests, and wildlife and fishery management areas.

How will contributions to the Louisiana Cancer Trust Fund be used?

This fund provides for resources to reduce the incidence, morbidity, mortality, and economic impact of all forms of cancer through education, prevention, research, and early detection.

How will contributions to the Animal Welfare Commission be used?

This fund is used to promote the proper treatment and well being of animals.

How will contributions to the Community Based Primary Health Care Fund be used?

This fund provides access to primary health care for the impoverished and low-income citizens.

How will contributions to the Military Family Assistance Fund be used?

This fund provides assistance to family members of activated Louisiana military personnel.

What other refundable credits can I enter on this screen?

Certain taxpayers, such as those with business income, may qualify for other credits. If a taxpayer meets the preliminary qualifications for that credit, such as having business income or being a certain filing status, that credit will be displayed as an option on this screen. If you are e-filing your return, be sure to keep any supporting documents for your records. Here is a list of the other credits and some details on each:
  • Inventory Tax: Credit for 100 percent of the ad valorem taxes paid to political subdivisions in Louisiana on inventory held by manufacturers, distributors, or retailers.
  • Ad Valorem Natural Gas: Credit for 100 percent of the ad valorem taxes paid to political subdivisions in Louisiana on natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities.
  • Ad Valorem Offshore Vessels: Credit for 100 percent of the ad valorem taxes paid on vessels in Outer Continental Shelf Lands Act Waters.
  • Telephone Company Property: Credit for up to 40 percent of the ad valorem taxes paid to Louisiana political subdivisions by a telephone company, with respect to that company's public service properties located in Louisiana. The credit may be passed through to individuals who are shareholders or members of certain legal entities.
  • Prison Industry Enhancement: Credit for purchases by a taxpayer of specialty apparel items from a private sector Prison Industry Enhancement (PIE) contractor.
  • Urban Revitalization: Credit for investing in certain economically depressed areas of the state. Taxpayers must apply to the Louisiana Department of Economic Development to receive certification.
  • Mentor-Protege: Credit for a mentor business that commits and provides professional guidance and support to its proteges to facilitate their development and growth as a competitive contractor, subcontractor, joint venture partner, or supplier of local, state, federal, and private markets. A copy of the certification of the credit must be attached to the return.
  • Milk Producers: Credit for a resident taxpayer engaged in the business of producing milk for sale. Those milk producers that have obtained permits under the Louisiana Administrative Code, Title 51 and have met the requirements of the Food and Drug Administration shall be certified by the Department of Health and Hospitals to receive the credit.
  • Technology Commercialization: Credit for a qualifying individual or business that invests in the commercialization of Louisiana technology. A copy of the certification of the credit from the Louisiana Department of Economic Development must be attached to the return.
  • Historic Residential: Credit for the amount of eligible costs and expenses incurred during the rehabilitation of an owner-occupied residential or owner-occupied mixed use structure located in a National Register Historic District, a local historic district, a Main Street District, or a downtown development district. The structure must have been listed or is eligible for listing on the National Register or has been certified by the State Historic Preservation Office. The tax credit shall be limited to one credit per rehabilitated structure and shall not exceed $25,000 per structure. Taxpayers must apply to the Louisiana Department of Culture, Recreation and Tourism, Division of Historic Preservation for certification. A copy of the certification must be attached to the return.
  • Angel Investor: Credit to encourage third party investment of taxpayers who make qualified investments to certified Louisiana entrepreneurial businesses between January 1, 2005 and December 31, 2009. To earn the Angel Investor Tax Credit, taxpayers must file an application with the Louisiana Department of Economic Development, which has the exclusive authority to implement and administer the credit program and approve the credit applications.
  • Musical and Theatrical Productions: Credit for the production expenses, transportation costs, employment of college and vocational-technical students, employment of residents, and for the construction, repair, or renovation of facilities related to productions and performances.
  • Wind and Solar Energy Systems - Non-Leased: A refundable credit (R.S. 47:6030) is allowed against income tax for taxpayers who purchase and install a wind energy system, a solar energy system, or both in a residence located in Louisiana, or for taxpayers who purchase and install such energy systems in a residential rental apartment project before July 1, 2013. Taxpayers are also eligible for the credit when a resident purchases a newly constructed home with such systems already installed, or when such systems are installed in new apartment projects. The credit is equal to fifty percent (.50) of the first $25,000 of the cost of each wind energy system or solar energy system, including installation costs, purchased on or after January 1, 2008.
    A refundable credit is also allowed for taxpayers who purchased and installed a solar electric system, a solar thermal system, or any combination of those components at a single-family residence located in the state on or after July 1, 2013. Only one credit is allowed per residence.
  • School Readiness Child Care Provider: A refundable credit (R.S. 47:6105) is allowed against income tax for a child care provider who operates a facility or facilities where care is given to foster children who are in the custody of the Louisiana Department of Social Services or to children who participate in the Child Care Assistance Program administered by the Office of Family Support in the Department of Social Services. The credit is based upon the average monthly number of children who attended the facility multiplied by an amount based upon the quality star rating of the child care facility. For more information regarding this credit, please contact the Louisiana Department of Social Services at 1-888-542-3578.
  • School Readiness Child Care Directors and Staff: A refundable credit (R.S. 47:6106) is allowed against income tax for eligible child care directors and eligible child care staff based on certain attained qualifications. The credit amount is variable and the 2013 amount is posted at www.qrslouisiana.org. For more information regarding this credit, please contact the Louisiana Department of Children and Family Services.
  • School Readiness Business Supported Child Care: A refundable credit (R.S. 47:6107) is allowed against income tax for a taxpayer who incurs eligible business-supported child care expenses. The credit amount of such eligible business child care expenses depends upon the quality rating of the child care facility to which the expenses are related or the quality rating of the child care facility that the child attends. Copies of canceled check and other documentation to support the amount of eligible business child care facility expenses should be maintained and provided upon request by a taxpayer claiming this credit. For more information regarding this credit, please contact the Louisiana Department of Social Services.
  • School Readiness Fee to Resource and Referral Agencies: A refundable credit (R.S. 47:6107) is allowed against income tax for a taxpayer whose business pays fees and grants to child care resource and referral agencies. The credit shall not exceed $5,000 per tax year. For more information regarding this credit, please contact the Louisiana Department of Social Services.
  • Sugarcane Trailer Conversion or Acquisition: A refundable credit for the cost paid this year to acquire or replace an eligible sugarcane trailer, or to convert an ineligible sugarcane trailer to an eligible sugarcane trailer. An eligible sugarcane trailer hauls sugarcane and meets certain requirements which will authorize the owner or operator to obtain an annual special permit for sugarcane vehicles after August 1, 2012. The credit is limited to $6,500 per trailer.
  • Retention and Modernization: A refundable credit for an employer who incurs qualified expenditures to modernize existing operations in Louisiana to retain the business in the state. Taxpayers must apply to the Louisiana Department of Economic Development to receive certification.
  • Conversion of Vehicle to Alternative Fuel:Act 219 of the 2013 Regular Legislative Session amended R.S. 47:6035 to define a refundable credit for the purchase of, or conversion of a vehicle to a flexible fuel vehicle designed to run on an alternative fuel. The credit is not allowed for the costs associated with the purchase or conversion of a flexible fuel vehicle, designed to run on both alternative fuel and gasoline or diesel. The purchased vehicle must be properly registered with the Louisiana Department of Public Safety. You must attach documentation verifying the conversion or purchase of the vehicle.
  • Research and Development: A refundable credit for any taxpayer who claims a federal income tax credit under 26 U.S.C. Section 41(a) for increasing research activities. The credit obtained through the Louisiana Department of Economic Development.
  • Digital Interactive Media and Software: A refundable credit for individuals for the investment in businesses specializing in digital interactive media and software. Taxpayers must apply to the Louisiana Department of Economic Development to receive certification. A copy of the certification of the credit must be attached to the return. See Revenue Information Bulletin 12-017 on LDR's website.
  • Wind and Solar Energy Systems - Leased: Act 428 of the 2013 Regular Legislative Session amended R.S. 47:6030 to allow a refundable credit for taxpayers who purchased and installed a wind energy system, a solar energy system, or both in a residence located in this state, or for owners who purchased and installed such systems in a residential rental apartment project before July 1, 2013. Taxpayers are also eligible for the credit when a resident purchased a newly constructed home with such systems already installed, or when such systems were installed in a new apartment project. The credit is equal to 50 percent of the first $25,000 of such systems including installation costs, purchase on or after January 1, 2008. Refer to Louisiana Administrative Code 61:I.1907 dated January 20, 2013, on LDR's website.
    A refundable credit is also allowed for taxpayers who purchased and installed a solar electric system, a solar thermal system, or any combination of those components at a single-family residence located in the state on or after July 1, 2013. Only one credit is allowed per residence. The credit is equal to 50% of the cost and installation.

What Native American income should I enter?

If you are an enrolled member of a federally recognized Indian tribe enter any income earned while residing on your tribe's reservation in Louisiana, even if you did not live on the reservation for the entire year. Income earned while residing on the reservation is exempt from state income tax and will be subtracted from your total taxable income.

Income earned while not living on the reservation is taxable. Do not enter that income here.

What are START Savings Program Contributions?

START Savings Program Contributions are donations made to the START savings account per qualified beneficiary.

START account holders with a filing status of Single, Married Filing Separately, Head of Household, and Qualifying Widow(er) can exempt up to $2,400 per beneficiary from Louisiana taxable income. Account holders with a filing status of Married Filing Jointly can each exempt up to $4,800 per beneficiary from Louisiana taxable income.

What is the Road Home Subtraction?

Act 247 of the 2007 Regular Session provides that any gratuitous grant, loan, or other benefit directly or indirectly provided to a taxpayer by a hurricane recovery entity shall be retroactively excluded if such income was included in the taxpayer's Federal Adjusted Gross Income. Hurricane recovery entities that provided such benefits are the Road Home Corporation, the Louisiana Recovery Authority, the Disaster Recovery Unit of the Office of Community Development, and the Louisiana Family Recovery Corps.

What is the Recreation Volunteer Subtraction?

Act 458 of the 2007 Regular Session provides for an exclusion of $500 per tax year for individuals who volunteer for recreation departments. To qualify for this exclusion, the taxpayer must serve as a volunteer for thirty or more hours during the taxable year and must be registered as a volunteer with a recreation department operated by the state of Louisiana or a political subdivision of the state. The recreation department must certify that the taxpayer served as a volunteer and was not compensated for their services.

What is the Volunteer Firefighter Subtraction?

Act 458 of the 2007 Regular Session provides for an exclusion of $500 per tax year for individuals who serve as volunteer firefighters. To qualify for this exclusion, the taxpayer must complete twenty-four (24) hours of continuing education and be an active member of the Louisiana State Fireman's Association or on the departmental personnel roster for the State Fire Marshal's Volunteer Fireman's Insurance Program.

What qualifies as Louisiana State Employees Retirement Benefits?

If you received retirement benefits from the Louisiana State Employees Retirement System that were included as taxable income on your federal tax return, enter the amount taxed on your federal return as a subtraction for Louisiana.

What qualifies as Louisiana State Teachers Retirement Benefits?

Enter the amount of retirement benefits received from the Louisiana State Teachers Retirement System as a subtraction from Louisiana income if the retirement benefits were included as taxable income on your federal tax return.

Which federal retirement benefits qualify as a subtraction?

Enter the amount of retirement benefits received from a Federal Retirement System as a subtraction from Louisiana income if the retirement benefits were included as taxable income on your federal tax return.

Which Other Retirement Benefits qualify as a subtraction?

Enter the amount of retirement benefits received from any retirement system whose benefits are specifically exempted by law from Louisiana income tax. On the next screen you will need to enter the name of the retirement system. A list of eligible retirement systems can be found within Louisiana publication R-40058 which can be found on the Louisiana Department of Revenue website.

What is the Retirement Income for Taxpayers Age 65 or Older Subtraction?

The software will automatically calculate the Retirement Income Exclusion for Taxpayers Age 65 or Older. Up to $6,000 of your (and your spouse's if married filing jointly) annual retirement income is taken as a subtraction on your Louisiana return if the income was taxable on your federal tax return.

Who qualifies for a Deaf disability?

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.

Who qualifies for a Loss of Limb disability?

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 lost permanently.

Who qualifies for a Mentally Incapacitated disability?

Mentally Incapacitated is defined as one who is incapable of caring for him or herself, or is incapable of performing routine daily health requirements due to the person's condition.

Who qualifies for a Blind disability?

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.

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