How is making a donation through the SRTC a better investment for my business?
A regular donation is only tax deductible, which lowers taxable income.
The School Readiness Tax Credit is a refundable tax credit that reduces the taxes owed, dollar-for dollar even if you do not owe any taxes.
- If ABC, Inc. makes a $4,000 donation and their tax bill at the end of the year is $12,000, they will only owe $8,000.
- If ABC, Inc. makes a donation in the amount of $5,000 and their tax bill at the end of the year is $3,000, they will receive a refund check from the state in the amount of $2,000.
How does the SRTC work for a not-for-profit?
Non-profits will need to register as a business with the LA Department of Revenue and receive a LA tax ID number. Many non-profits will already be registered and have a state tax ID number for withholding purposes for their employees. To claim the tax credit, a non-profit will file a corporate income tax return claiming zero for income (unless they have unrelated business taxable income) and claiming the refundable tax credit which will generate a refund.
Where do I enter the SRTC on my tax return?
If you are filing a LA Corporate/Franchise tax return, enter the amount of your donation on line 15A – Other Refundable Credits and list code 68F – School Readiness Fees and Grants to Resource & Referral Agencies on Schedule RC.
If you are filing an Individual LA tax return, enter the amount of your donation on line 23 under Refundable Tax Credits and list Code 68F – School Readiness Fees and Grants to Resource & Referral Agencies on Schedule F.
For detailed tax information, visit the LA Dept. of Revenue website, www.rev.louisiana.gov, reference statute 47:6107.
Where can I get more information on the tax credit?
- Visit the Louisiana Quality Start website, www.qrslouisiana.org , click on Tax Credits.
- Visit the LA Dept. of Revenue website, www.rev.louisiana.gov, reference statute 47:6107.
- Discuss with your CPA/Financial Advisor.
- Contact Shannon Abney, Tax Credit Coordinator at Volunteers of America, 225-408-3794 or email at firstname.lastname@example.org.