LAC 61:I.1925 — Donations to Qualifying Foster Care Charitable Organization Credit

A. General Description.
1. The Donation to Qualified Foster Care Charitable Organization credit provides a nonrefundable income tax credit for donations made on or after January 1, 2022 to the QFCCO. To qualify for the credit, the donation must be used by the QFCCO to provide services to qualified individuals.
2. The credit shall be earned in the year in which the donation was made and shall be equal to the lesser of $50,000 or the actual amount of donations used by the QFCCO to fund qualified services for qualified individuals.
3. The credit shall be allowed against the income tax for the taxable period in which the credit was earned. If the tax credit allowed pursuant to R.S. 47:6042 exceeds the amount of such taxes due, any unused credit may be carried forward as a credit against subsequent tax liability for a period not to exceed five years.
B. Definitions
Affiliated—any entity possessing either a:
a. significant common purpose and substantial common membership; or
b. direct or indirect substantial common direction or control.
QFCCO—qualifying foster care charitable organization.
Related—the donor's spouse, the children of the donor, the spouses of the donor's children, the donor's brothers or sisters and their spouses, the donor's parents, and the parents of the donor's spouse.
Secretary—secretary of the Department of Revenue, or their designee.
C. Qualified Services
1. The qualified service must be provided by the QFCCO directly to the qualified individual. Qualified services include the following:
a. Cash Assistance
i. Cash assistance, including cash in the form of gift cards, must be provided directly for the qualified individual for the purpose of assisting the qualified individual in meeting ongoing basic needs.
ii. Cash payments or scholarships to schools, camps, activities, or team sports do not qualify as cash assistance.
b. Medical Care
i. Medical care must be provided by the QFCCO directly, or indirectly, by providing access to medical care by means of paying for the medical care, providing round trip transportation to the medical care provider, or connecting the qualified individual to the medical care.
ii. Medical care must be provided by medical professionals including, but not limited to, doctors, nurses, physician’s assistants, optometrists, ophthalmologists, dentists, chiropractors, phycologist, psychiatrists, and licensed therapists.
c. Child Care
i. Child care means the compensated service that is provided to a child who is unaccompanied by a guardian during a portion of a twenty-four hour period.
ii. Child care must be regular and predictable to be considered a basic need service.
d. Food
i. Food includes food products for home meal preparation as well as the provision of prepared meal(s).
e. Clothing
i. Qualified clothing includes, but is not limited to infant attire, shirts, pants, skirts, school uniforms, socks, undergarments, shoes, footwear, coats, and interview attire.
ii. Clothing does not qualify as a basic need if it consists of a single item of clothing per qualified individual for attendance or participation in an event.
iii. Sports team uniforms do not qualify as clothing.
f. Shelter
i. Shelter is the provision of permanent or temporary housing for a qualified individual.
ii. Shelter includes furnishings of a home, rental or mortgage assistance, payment for home maintenance services or supplies and utility expenses.
g. Job Training
i. Job training must be for a specific job or industry, not simply general education to obtain a GED or prepare for college.
ii. Round trip transportation to the job training is considered a basic need service.
D. Claiming the Tax Credit
1. Taxpayers claiming the Donations to Qualifying Foster Care Organization credit must attach Form R-68009, Receipt for Donation to Qualifying Foster Care Charitable Organization Credit to their return. The receipt shall consist of a QFCCO portion and a donor portion and must be issued by the QFCCO to the donor.
2. The credit must be claimed for the taxable year in which the donation was made.
E. Tax Credit Cap
1. For each calendar year, the department shall not approve credits in excess of $500,000. Taxpayers shall be allowed to claim the credit on a first-come, first serve basis as determined by the received date of the taxpayer’s income tax return with all required documents. A taxpayer claiming the donations to qualifying foster care organization credit must attach Form R-68009 to their return and provide any additional information requested by the department. A shareholder of an S corporation or other pass-through entity must also attach a copy of the Schedule K-1 to substantiate the credit.
H. QFCCO Reporting
1. A QFCCO must electronically submit a report by email to TaxCredit.Registry@la.gov, which is prepared by an independent certified public accountant not related to a donor or affiliated with the QFCCO, and which includes all information required by R.S. 47:6042(C)(2), no later than January 31 of each year. When all donations received by a QFCCO in the prior calendar year are used to provide services to qualified individuals, the report may include the total amount of donations received and a statement that to that effect in lieu of the requirements in R.S. 47:6042(C)(2)(c) and (d).