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Community support helps promote faculty research

Little-known tax credit
partly responsible
for equipment purchase

Earlier this year, Dr. Al Vekovius, dean of the College of Sciences, recognized he had a rare opportunity to recruit a faculty member who is an expert in the field of organic synthesis. Dr. Brian A. Salvatore, an associate professor of chemistry, has wide-ranging research interests, including the synthesis of compounds active against cancer and the design of nanotechnology devices based on synthetic peptides.

There is a tremendous demand for these scientists in industry and government research laboratories. In order to attract Salvatore to LSUS, Vekovius needed to purchase the lab equipment he was using at the University of South Carolina. Replacement cost of the lab equipment was more than $250,000, but USC agreed to let LSUS buy it all for $36,000.

Vekovius had some limited funds to use to purchase the equipment, but he needed an additional $24,000 for two of the most critical scientific instruments. He met with Jack Sharp, president of the Biomedical Research Center in Shreveport, who arranged to have Biomed underwrite the cost of one piece for $9,000.

Still needing the additional $15,000 for the second piece of equipment, Vekovius visited with LSUS Foundation Board member Arnold Lincove who suggested he research a little-known Louisiana tax credit established to encourage donations of technical equipment to educational organizations.

Vekovius called Glenda Erwin, associate vice chancellor for development, to find out if she knew about the tax credit. Erwin recalled an article authored and sent to her by LSUS Foundation Board member Bobby Jelks, a CPA and partner at KPMG LLC.

Vekovius contacted Jelks to discuss how such a donation could be made to the university. Jelks explained the tax credit was established in 1984 by Louisiana Revised Statute 47:37, and provides a 40 percent credit on Louisiana income taxes for donations of scientific research equipment to educational organizations. This includes computers, printers, lab equipment and any high-tech piece of research equipment.

As he explained in his article, “The intent of the Section is to provide an incentive to corporations, individuals, estates and trusts to contribute or donate, or sell below cost tangible movable property to public educational institutions for purposes of research, research training, or direct education of students in the state.”

They estimated that after the federal income tax deduction and the Louisiana Tax Credit, a donor’s realized cost of such a donation would be 41 percent of the actual value of the donated equipment. Interestingly, the tax break comes only with the donation of equipment to the university, not with the donation of cash for the university to buy the equipment.

Bolstered by this information, Vekovius went to Robert Bowman, president of Bowman Internet Systems and an LSUS Foundation Board member, who was already supporting the university through scholarships for computer science majors. Vekovius explained the need for the equipment and the potential tax savings from the donation. Bowman agreed to purchase the $15,000 piece of equipment and donate it to the university.

“It was important to Dr. Salvatore that he continue his research at LSUS,” Vekovius said, “and he could not have done so without the scientific equipment he was using at the University of South Carolina. Without the financial support of the Biomedical Research Foundation and Robert Bowman, it is doubtful that we could have brought Dr. Salvatore to our campus. This is another example of the Biomedical Research Foundation helping to ensure a solid future for Shreveport, and of a young businessman supporting the community he lives and works in.”

The last of the equipment was delivered this fall and set up in a laboratory in the College of Sciences. Salvatore will continue his research and will work with LSU Health Sciences Center-Shreveport and other organizations in collaborative research efforts.

“Although this Louisiana Tax Credit is not well known, it is a wonderful opportunity for donors to support the university and see tremendous tax savings,” Erwin said. “Because so much of the educational opportunities on our campus depend on sophisticated and technical equipment, the university stands to benefit immensely from these types of donations. I encourage anyone who is interested in helping our students continue to have access to the latest technology to call us about this opportunity.”