Dear Friend,

Would you like to invest in your community’s children with a gift that PAYS YOU BACK? Our state feels that
early childhood education is so important that legislators have passed a law allowing Louisiana businesses to
contribute up to $5,000 a year to support Volunteers of America’s Partnership in Child Care program and
receive a 100% refundable School Readiness Tax Credit. That’s right - the state will reimburse your business
dollar-for dollar for your donation. Even if your business does not owe state taxes or if your donation exceeds
your tax bill, the state will reimburse you in the form of a refund.
When you look at the facts and figures, we all can help to level the playing field for all. Did you know that;
Louisiana has the second highest rate of childhood poverty in the nation, a factor that undercuts high-quality
early childhood education, results in underachievement on high-stakes testing, increases the likelihood of high
school drop-out, and increases dependence and crime.

*40% of the variation in poverty rates among the State’s parishes is attributable to high school drop-out rates.
*Only 54% of children entering kindergarten are academically and developmentally ready to succeed.

Children lacking adequate reading skills are four times more likely to drop out of high school. With the
Louisiana Department of Education’s implementation of Act 3, all children need to be kindergarten ready
regardless of where they receive their early childhood education (Head Start, Child Care Center, or Public Pre-
K). Child Care Centers in our region need added supports to get to this level. Tax credit dollars can help these
centers begin to level the playing field. Partnerships in Child Care provides services to 15 parishes, 250
Early Learning Centers and over 9,000 children.
Your donation will enhance the quality of early childhood education by nurturing children’s physical, social and
cognitive development and allow them to enter kindergarten with the skills to succeed. It is truly a rare
opportunity for you to make a charitable gift and get 100% of your donation back. This is a win-win for your
business and your community.
Here are the simple steps needed to receive your tax credit:
1. View the enclosed flyer on how the Louisiana School Readiness Tax Credit (SRTC) works. For more
information, visit www.GetSmartLA.org.

2. Discuss the SRTC with your CPA or financial advisor or have them contact me directly. Reference law
R.S. 47:6107 on the Louisiana Dept. of Revenue website, www.rev.louisiana.gov. When preparing tax
returns, enter code 68F – School Readiness Fees/Grants to Resource and Referral Agencies.

3. Complete the enclosed Contribution form and return to Volunteers of America along with your
donation. We can also invoice you for your donation prior to your business’s fiscal year end, if desired.

4. You will receive an official receipt for your taxes within 2 weeks of the receipt of your contribution.
It’s that easy!

Thank you for taking the time to learn more about the Louisiana School Readiness Tax Credit. Please contact
me with any questions you may have.

Best,

Rae Gremillion
Volunteers of America GBR-Acadiana Programs
Partnerships in Child Care
rgremillion@voa-acadiana.org
School Readiness Tax Credit
In 2007, the Louisiana Legislature passed Act 394, which enacted Revised Statutes 47:6101-
6109 to provide a package of tax credits known as the School Readiness Tax Credits. These
credits allow tax breaks to families, child care providers, child care directors and staff, and
businesses that support child care in an effort to encourage child care facilities to voluntarily
participate in the quality rating program administered by the Louisiana Department Education
(LDE) under the name of Quality Start Child Care Rating System. The Quality Start web site
also includes a search feature that can be used to determine the quality rating for child care
centers located in parishes throughout the state.

The School Readiness Tax Credits, which are effective for income tax years beginning on or
after January 1, 2008, and franchise tax years beginning on or after January 1, 2009, are as
follows:

1. Child care expense tax credit — (R.S. 47:6104)

2. Child care provider tax credit — (R.S. 47:6105)
3. Credit for child care directors and staff — (R.S. 47:6106)
4. Tax credit for business-supported child care — (R.S. 47:6107)
5. Tax credit For Donations To Resource And Referral Agencies — (R.S. 47:6107)

To provide additional guidance for the School Readiness Tax Credits, the Louisiana
Department of Revenue (LDR) and Louisiana Department of Children and Family Services
(DCFS) adopted LAC 61:I.1903.
Tax Credit For Donations To Resource And Referral
Agencies—R.S. 47:6107
Businesses may also receive a tax credit for donations made to Child Care Resource and
Referral Agencies. These are private agencies that contract with the Department of Education
to provide information and services to parents and child care providers. The credit is equal to
the amount donated but cannot exceed $5,000 per tax year.

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 business 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.

For additional information concerning the Tax Credit For Fees and Grants to Resource and
Referral Agencies, see LDE’s
Frequently Asked Questions.

Q. What are the School Readiness Tax Credits (SRTC) for Businesses and Employers?
A. The SRTCs are a package of refundable state tax credits designed to support quality child care. Some of these
state tax credits are available to businesses and are NOT dependent on whether the business owes state income or
corporate franchise taxes. Furthermore, the credits are available for both for-profit and non-profit businesses. There
are two types of SRTCs available to businesses/employers: 1) a refundable state tax credit based on a percentage of
the “eligible expenses” incurred in support of child care centers participating in Quality Start, and 2) a refundable
state tax credit for donations made to child care resource and referral agencies.

Q. How can my business receive a refundable state tax credit for donations to Child Care Resource and
Referral Agencies?
A. 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 Education to
provide important information and services to parents and child care providers. The Louisiana Department of
Education has contracted with the following agencies to be the Child Care Resource and Referral agencies.

Q. Can my business donate to more than one Resource and Referral Agency?
A. Yes, businesses may claim a refundable tax credit for up to a maximum of $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 above. The maximum amount of contribution can certainly exceed $5,000 but the SRTC tax credit maximum is
$5,000.

Q. Which businesses are eligible to receive these tax credits?

A. All businesses are eligible. 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. However, as it does not include any individual operating in their personal capacity,
the SRTC is not available to individuals who make donations, as described above.

Q. A not-for-profit business can receive these credits as well?

A. Yes, non-profits will need to register as a business with the Department of Revenue and receive a Louisiana tax ID
number. Many non-profits will already be registered and have a state tax ID number because it is needed for
withholding purposes for their employees. If for some reason a non-profit does not have a state tax ID number,
please go to the Louisiana Department of Revenue website for more information. To claim the tax credits, the
non-profit will file a corporate income tax return claiming zeros for income (unless they have unrelated business
taxable income) and claiming the refundable tax credits which will generate a refund.

Q. What is a tax credit, and how is it different from a tax deduction?

A. A tax credit reduces the taxes paid, dollar-for-dollar. A tax deduction lowers taxable income.

Q. What is a refundable tax credit?

A. A refundable tax credit is one that is available to a taxpayer even if they do not owe any taxes. Refundable tax
credits first reduce the amount of taxes you owe by the amount of the credits. If the credits exceed your business’
tax burden, then you will receive a check for the difference. For example, if your business earns $20,000 in SRTCs
and it owes $25,000 in state taxes, its state tax bill will be reduced to $5,000. However, if the business owed
$15,000 in state taxes, it will no longer owe those taxes and your business will receive a check for $5,000. If you
have a non-profit business and it does not owe any taxes, it will receive the full value of the SRTCs, in this example,
a check for $20,000.

Q. Where in the law does the SRTC for businesses exist? (What is the citation for the SRTC law?)
A. You can find the law at La. Rev. Stat. § 47: 6102 and 6107-08. These can be accessed via the Web at:

http://www.legis.state.la.us/lss/lss.asp?doc=453231,
http://www.legis.state.la.us/lss/lss.asp?doc=453236 and
http://www.legis.state.la.us/lss/lss.asp?doc=453237
School Readiness Tax Credits

▪ FAQ for Businesses

▪ Tax Credit Requirements
▪ R & R Information
▪ Louisiana Dept. of Revenue Information

What do School Readiness Tax Credits mean to your business?

The primary goal of the Quality Start system is the improvement of Louisiana’s child care industry. But we also

realize that child care centers are businesses, and as businesses they have to deal with a tight economy, not to

mention the normal needs of any business. That is why we created the School Readiness Tax Credit Program.

In 2007, the Louisiana Legislature passed a very unique package of tax credits known as the School Readiness Tax

Credits (SRTC). No other state has this package of tax credits in support of quality child care. The tax credits took

effect on January 1, 2008. They are designed specifically to help our member businesses.

The SRTCs are a package of refundable state tax credits designed to support quality child care. Some of these state

tax credits are available to businesses and are NOT dependent on whether the business owes state income or

corporate franchise taxes. The credits are available to both for-profit and non-profit businesses. There are two types

of SRTCs available to businesses/employers: 1) a refundable state tax credit based on a percentage of the “eligible

expenses” incurred in support of child care centers participating in Quality Start, and 2) a refundable state tax credit

for donations made to child care resource and referral agencies.

How Else Can You Benefit?

Businesses that support quality child care will also be eligible for a tax credit based on the star rating of the center.

These credits may include businesses that construct, renovate, or expand a child care center, purchase equipment

for a center, maintain or operate a center, or subsidize child care for their employees. Businesses may also receive a

tax credit for donations made to Child Care Resource and Referral agencies.
 2017 Procedures for filing your
Tax Return

Businesses with a Louisiana Tax ID# qualify for a 100% refundable School Readiness Tax Credit on
their Louisiana state income taxes for donations up to $5,000 annually to Volunteers of America GBR-
Acadiana Programs. Refer to Louisiana state law R.S. 47:6107 – School Readiness Fees/Grants to
Resource and Referral Agencies.

1. When filing your state tax return, you must submit a copy of the tax receipt and a copy of
your canceled check. You will receive the tax receipt in the mail along with a thank you
letter within one week of making your School Readiness Tax Credit donation.

2. Please NOTE: If you file electronically, you must attach a copy of the tax receipt to your
electronic return and a Schedule K-1, if applicable.

3. If you are filing a LA Corporate Tax Return:

a. Enter the amount of your tax credit donation up to $5,000 on line 15A – Other
Refundable Credits.

b. On Schedule RC – Refundable Tax Credits and Rebates, enter code 68F – School
Readiness Fees/Grants to Resource/Referral Agencies and the amount of your
donation.

4. If you are filing a LA Individual Tax Return:

a. Applies to businesses donating as a sole proprietor or a flow through entity such as an

LLC, Partnership or Subchapter S corporation.

b. Partners and Shareholders should apportion the credit based on each partner or
shareholder’s percentage of ownership in the business and include a copy of your
Schedule K-1 when filing.

c. Enter the amount of your School Readiness Tax Credit donation up to $5,000 on line 23
under Other Refundable Credits.

d. On Schedule F, enter code 68F – School Readiness Fees/Grants to Resource/Referral

Agencies under Additional Refundable Credits and the amount of your donation.

5. Please discuss any questions specific to your business with your CPA or Financial Advisor.

6. If you or your CPA have any questions on the tax process or would like copies of your
letter/receipt sent to you electronically, please contact Rae Gremillion at 337.704.2838 or
rgremillion@voa-acadiana.org
 Louisiana School Readiness
Tax Credit
2017 Contribution Form
Businesses with a Louisiana Tax ID# qualify for a 100% refundable tax credit on their Louisiana state
income taxes for donations up to $5,000 annually to Volunteers of America GBR- Acadiana Programs.
Refer to Louisiana state law R.S. 47:6107 – School Readiness Fees/Grants to Resource and Referral
Agencies.

Name of Business: ___________________________________________

Name of Owner/Contact: ______________________________________

Please enter name of person(s) to whom the tax receipt/thank you letter should be mailed if other
than Contact Name: _________________________________________

Phone Number: ________________ E-mail: ______________________

Mailing Address: ______________________________________________

City/State/Zip: _______________________________________________

May we print your Business’s name and/or logo as a donor in future SRTC newsletters?

□ Yes □ No, thanks Please forward your logo to Rgremillion@voa-acadiana.org

I would like to make a donation of $ _______________ payable □ In full

□ $__________ a month for _______ months

Payment Options:

____My check is enclosed, made payable to Volunteers of America GBR-Partnerships in Child Care

____Please bill me for my donation at a deferred date of _____________.

____Please charge my Visa/MC/Amex #_______________________ exp.__________

Security code_____□ Please automatically charge my credit card $________ monthly.

Comments:_____________________________________________________________

Please return this form to:

Volunteers of America
School Readiness Tax Credit
Attn: Rae Gremillion
114 Exchange Place
Lafayette, LA 70503

Email- Rgremillion@voa-acadiana.org, contact # 337 704.2838

 An investment in children that pays you back.
June 24, 2016 Craig C. LeBouef, MBA, CPA/PFS

For those businesses who are interested in children academically and developmentally to provide them opportunities to
succeed in life, Volunteers of America has a program you can contribute to and receive a refundable credit of your
contribution when you file your state income tax return.

The program is known as Louisiana School Readiness Tax Credit and is sponsored through Volunteers of America’s
Partnership in Child Care Program. Eligible businesses may contribute up to $5,000 a year to support this area program and
receive a 100% refundable School Readiness Tax Credit. Yes, the state (currently) will reimburse your business dollar-for-
dollar for your donation.

According to Volunteers of America (VOA) literature, Louisiana has the second highest rate of childhood poverty in the
nation, a factor that hinders childhood education. Many feel this lack of education results in underachievement in testing,
increases the likelihood of high school drop-out, and leads to a life of government dependence and crime. VOA says only 54%
of children entering kindergarten are academically and developmentally ready to succeed.

There are other School Readiness Tax Credits designed to support the quality of early childhood education in the state, but
his article addresses one of them – Tax Credit for Donations to Resource and Referral Agencies which applies to businesses.
To state again, businesses can receive a dollar-for-dollar 100% refundable tax credit up to $5,000 for donations to Child Care
Resource and Referral Agencies that hold a contract with the Louisiana Department of Education. In St. Landry, Evangeline,
St. Martin, Acadia, Iberia, Vermillion, and St. Mary parishes, the only designated resource and referral agency is Volunteers of
America.

Which businesses are eligible to receive these tax credits? According to the Louisiana Department of Revenue website, all
businesses are eligible. A business is defined as any for-profit or not-for-profit entity and includes sole proprietors (as long as
the individual is not acting in his or her personal capacity), partnerships, limited liability companies, and corporations.
However, the credit does not apply to any individual operating in their personal capacity. In other words, the credit is not
available to individuals who make donations.

For partnerships and corporations, partners and shareholders should apportion the credit based on each partner or
shareholder’s ownership percentage. This credit, unlike other credits, was not reduced to 72% of the amount paid as passed
in last year’s legislative session. However, with the legislature getting ready to enter into another special session, we will have
to see once the session is over if the full 100% credit is still intact.

Unlike a regular tax-deductible charitable donation, which only lowers your taxable income, the School Readiness Tax Credit
is a refundable tax credit that reduces the taxes you owe dollar-for-dollar. For example, if CCL Company makes a $5,000
donation and has a tax bill of $8,000, the company will owe $3,000. However, if CCL company makes a donation in the
amount of $5,000 and has a tax bill of $2,500, the company will receive a refund from the state of $2,500.

The steps needed to receive your tax credit are 1. Complete a Louisiana School Readiness Tax Credit contribution form along
with your donation (or asked to be invoiced by VOA before your business’s fiscal/calendar year end) and send to VOA. 2. Wait
for your official receipt from VOA for your tax return information (should arrive within 2 weeks) and be sure to attach if you
self-prepare or submit to your tax advisor when time to prepare state income tax return.

If you have a business, and you are interested in helping our state’s children that will hopefully lead to improved school
performance, reduced crime and welfare costs, and increased personal wages, you may want to consider contributing to VOA
School Readiness Tax Credit Program. And in addition, you will receive a refundable tax credit.

Craig C. LeBouef, MBA, CPA/PFS, CFP, Shareholder of Going, Sebastien, Fisher, & LeBouef, LLP, Certified Public Accountants,
Registered Investment Advisors, and Consultants, 2811 South Union, Opelousas, LA. Website: www.goingcpa.com E-mail:
craig@goingcpa.com