School Readiness Tax Credit for Louisiana Businesses
Invest in Your Community's Children With a Gift That Pays You Back!
Businesses with a Louisiana Tax ID can receive a dollar-for-dollar refundable tax credit up to $5,000 for donations to Child Care Resource and Referral Agencies that hold a contract with the Department of Children and Family Services. In Greater Baton Rouge, the ONLY designated resource and referral agency is Volunteers of America.
Download a PDF of Volunteers of America's
School Readiness Tax Credit Brochure
Find out more about getting tax credits for your donations at the official Quality Start Rating website, http://qrslouisiana.org/businesses/tax-credit-requirements
Frequently Asked Questions
What is the Louisiana School Readiness Tax Credit?
Who qualifies for the School Readiness Tax Credit?
How is making a donation through the School Readiness Tax Credit a better investment for my business?
How will my dollars be used?
What will be the lasting impact of my gift?
Where can I get more information?
What is the Louisiana School Readiness Tax Credit?
The SRTCs are a package of refundable state tax credits designed to enhance the quality of early education in the state. The SRTC became law R.S. 47:6107 during the 2007 regular session of the Louisiana Legislature.
Who qualifies for the School Readiness Tax Credit?
All businesses with a Louisiana Tax ID number are eligible including any for-profit or non-profit entity, sole proprietors, partnerships, limited liability corporations and corporations. The School Readiness Tax Credit is not available to individuals who make donations.
How is making a donation through the School Readiness Tax Credit 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. Examples:
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 will my dollars be used?
Volunteers of America will invest School Readiness Tax Donations through its Partnerships in Child Care programs to improve the quality of early education in the Baton Rouge area. By investing in early education, your business will:
- Sustain initiatives that prepare young children for success in kindergarten
- Support early education that builds foundations for language skills, social development, and improved test scores
- Be a partner in promoting early education practices that can decrease drop-out rates and behavior problems, grade repetition, juvenile and adult corrections, and child welfare spending in the capital area.
Your investment will provide training and technical assistance to child care providers that will help them improve their quality of care. Without teachers and preschool environments to encourage physical, social and cognitive development, children are more likely to drop out of high school and more are likely not to go to college. By giving now, you can make sure that preschool children get basics that will build foundations for future success. The first six years of life are critical in terms of a child’s development and you can help make sure that they get all they can out of early childhood education. A child who attends a high quality child care center will develop better language and math skills, be able to pay attention in class, get along better with other children and exhibit fewer behavior problems.
What will be the lasting impact of my gift?
For every $1 spent on quality early education, taxpayers save up to $17 with improved school performance, reduced crime costs and welfare costs, increased wages and more.
Source: Early Childhood Development with High Public Return. Rob Grunewald & Art Rolnick. Federal Reserve Bank of Minneapolis–Analysis of Perry Preschool Program
Where can I get more information?
Contact Volunteers of America Greater Baton Rouge. (225) 926-8005
Go to the Quality Start Rating System Website http://qrslouisiana.org/businesses/school-readiness-tax-credits
Go to the Louisiana Department of Revenue website www.revenue.louisiana.gov
Speak to your accountant or tax advisor.
Partnerships in Child Care
4521 Jamestown Avenue, Suite 5
Baton Rouge, LA 70808
(225) 926-8005