§287.755. Tax credit for contributions to educational institutions
A. The intent of this Section is to provide an incentive to corporations, persons,
estates, and trusts to contribute, donate, or sell below cost tangible movable property to
public educational institutions for purposes of research, research training, or direct education
of students in the state. Any corporation, person, estate, or trust contributing, donating, or
selling below cost tangible movable property to educational institutions as specified herein
shall be allowed a credit against the tax liability due under the income tax as determined
pursuant to Subsection C of this Section.
B. For purposes of this Section the following words and phrases shall have the
(1) "Corporation" means any business entity authorized to do business in the state
of Louisiana and subject to the state corporate income tax.
(2) "Cost". In the case of a donation or sale below cost by a wholesale or retail
business, "cost" means the amount actually paid by the wholesaler or retailer to the supplier
for the machinery or equipment. In the case of a donation or sale below cost by a
manufacturer of machinery or equipment, "cost" means the enhanced value of the materials
used to produce the machinery or equipment, which shall be deemed to be the lowest price
at which the manufacturer sells the machinery or equipment.
(3) "Educational institution" means any public elementary and secondary,
vocational-technical, or higher education facility, private, or parochial institution, community
college, special school, museum, or any public library in the state of Louisiana.
(4) "New" means the machinery and equipment is state of the art machinery and
(a) Has never been used except for normal testing by the manufacturer to insure that
the machinery or equipment is of a proper quality and in good working order.
(b) Has been used by the retailer or wholesaler solely for the purpose of
demonstrating the product to customers for sale.
(5) "Persons, estates, and trusts" shall be as defined by R.S. 47:31.
(6) "State of the art machinery and equipment" means machinery and equipment
which is of the same type, design, and capability as like machinery and equipment which is
currently sold or manufactured by the donor for sale to customers.
(7) "Tangible movable property" means property of a sophisticated and technological
nature, including any computer or data processing equipment, either hardware, software, or
both, which is capable of being used for purposes of research, research training, or direct
education of students.
C. There shall be allowed a credit against the tax liability due under the income tax
for donations, contributions, or sales below cost of tangible movable property made to
educational institutions in the state of Louisiana. The credit allowed by this Section shall be
computed at the rate of twenty-nine percent of such property's value, as defined herein, or,
in the case of a sale below cost, twenty-nine percent of the difference between the price
received for the tangible movable property by the taxpayer and the value of the property as
defined herein. The credit shall be limited to the total of the tax liability for the taxable year
for which it is being claimed and shall be in lieu of the deductions from gross income
provided for in R.S. 47:57. The credit shall not be allowed if the taxpayer arbitrarily,
capriciously, or unreasonably discriminates against any person because of race, religion,
ideas, beliefs, or affiliations.
D.(1) Any donations, contributions, or sales below cost of tangible movable property,
to an educational institution shall not qualify for this credit unless approved and accepted by
the immediate board of jurisdiction charged with supervision and management of the
educational institution. Prior to any donation, contribution, or purchase below cost of such
property, the board of jurisdiction over the educational institution shall certify in writing that
property to be donated, contributed, or purchased shall be used only in research, research
training, or direct education of students.
(2) The value of the credit against any income tax due shall be based upon the
donor's or seller's actual cost of new items of such property and not on retail value and upon
appraised value of used items of such property. When new property is donated, contributed,
or sold as provided herein, the donor or seller shall furnish to the board of jurisdiction an
invoice showing the donor's or seller's actual purchase price. When used property is donated,
contributed, or sold below cost, an appraisal shall be obtained by the institution accepting the
donation or contribution or purchasing the used property. The institution shall furnish to the
donor or seller a certification of such donation, contribution, or sale below cost, which shall
include the date and the value of the property donated, contributed, or sold. The sale of used
property below cost means the sale of such property below its appraised value. The donor
shall attach the certification to the income tax return filed with the Department of Revenue.
E.(1) Any corporation, person, estate, or trust contributing, donating, or selling for
less than cost any tangible movable property to an educational institution shall enter into an
orientation agreement with the educational institution receiving said contribution, donation,
or purchase. Such orientation must be provided at no cost to said institution and shall be
provided at a location as determined pursuant to said agreement. Orientation shall occur
within two weeks after installation of such property.
(2) If requested by the donee or purchaser, any corporation, person, estate, or trust
contributing, donating, or selling any tangible movable property to an educational institution
shall enter into a minimum three months maintenance or service agreement with the
educational institution in order to receive tax credit provided herein.
(3) Any software or courseware donated under the provisions of this Section shall
be compatible with the existing hardware of the educational institution.
F. The secretary of the Department of Revenue shall promulgate such rules and
regulations as may be deemed necessary to carry out the purposes of this Section.
G. Any state educational institution receiving any donation or contribution or
purchasing any property below cost under this Section shall report to the Joint Legislative
Committee on the Budget, with respect to any tangible movable property donated,
contributed, or property purchased below cost, information concerning the type and condition
of property, the value of the property, the amount of the tax credit, and any other information
which may be requested by the committee.
H. The provisions of this Section shall be effective for taxable periods beginning
after December 31, 1985.
I. The credit provided for pursuant to the provisions of this Section shall terminate
and shall have no effect beginning January 1, 2020.
Acts 1986, 1st Ex. Sess., No. 16, §1, eff. Dec. 24, 1986; Acts 1997, No. 658, §2; Acts
2015, No. 125, §2, eff. July 1, 2015; Acts 2016, 1st Ex. Sess., No. 29, §2; Acts 2017, No.
400, §§1, 4, eff. June 26, 2017; Acts 2017, No. 403, §2, eff. June 26, 2017.