Quality Start Louisiana

Businesses

You've given them the sun and the moon. Now give them the stars.

Tax Credit Requirements

Everything You Need To Know To Receive Our Special Tax Credits For Your Business.

The School Readiness Tax Credits are a unique benefit available only to businesses that belong to the Quality Start Program. They are designed to reward those centers that have made the decision to be among Louisiana’s finest child care centers.

Expenses Eligible For Credits Include:

  1. The construction, renovation, expansion, or major repair of an eligible child care facility, or the purchase of equipment for such facility, or the maintenance and operation thereof, not to exceed $50,000 in expenses per tax year and/or
  2. Payments made to an eligible child care facility for child care services to support employees, not to exceed $5,000 per child per tax year and/or
  3. The purchase of child care slots at eligible child care facilities actually provided or reserved for children of employees, not to exceed $50,000 per tax year

The “eligible expenses” are cumulative so your business can donate up to $50,000 for renovations, purchase up to $50,000 in child care slots for your employees, and subsidize child care for as many employees as you wish (up to $5,000 per child).

Get Credits For Donations.

In addition, businesses can receive a dollar-for-dollar refundable tax credit for up to $5,000 for donations to Child Care Resource and Referral Agencies. These are private agencies that contract with the Department of Children and Family Services to provide important information and services to parents and child care providers. For more information, click here.  

Businesses may claim a refundable tax credit for up to $5,000 in grants to one or more Child Care Resource and Referral agencies. Remember, this credit is dollar for dollar and is not subject to the percentages listed in the chart below. The maximum amount of contribution may exceed $5,000, but only $5,000 per contribution is eligible for the SRTC tax credit.

The refundable credit can be taken against individual income tax, corporation income tax, or corporation franchise tax depending on the business’s entity type as follows:

  • Individual income tax credit—If the business making the donation is owned by a sole proprietor or a flow-through entity such as a Limited Liability Company (LLC), Partnership, Subchapter S corporation, the credit will be claimed on the Resident Individual Income Tax return, Form IT-540, Schedule F, or the Nonresident and Part-Year Resident Individual Income Tax Return, Form IT-540B, Schedule F-NR. Partners and shareholders should apportion the credit based on the each partner or shareholder’s percentage of ownership.
  • Corporation income or franchise tax credits—If the business making the donation is a corporation or C-corporation, the credit will be claimed on the Corporation Income and Franchise Tax Return, Form CIFT-620, Schedule RC.
  • Nonprofit Organizations—If the entity making the donation is a nonprofit organization, the tax credit must be taken on the Corporation Income and Franchise Tax Return, Form CIFT-620, Schedule RC. If the nonprofit organization is not registered with the Department of Revenue because it is exempt, the organization must register and obtain a Louisiana tax identification number and file the tax return to claim the credit

All businesses are eligible to receive the tax credit. A business is defined as any for-profit or not-for-profit entity and includes sole proprietors (so long as the individual is not acting in his/her personal capacity), partnerships, limited liability corporations and corporations. The SRTC is not available to individuals who make donations.   

Quality Rating of Child Care Facility The amount of the tax credit is tied to the quality rating of the child care center as follows: Percentage of Eligible Expenses
Five Star 20%
Four Star 15%
Three Star 10%
Two Star 5%
One Star or not participating in Quality Start 0



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