Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 16 - Louisiana Entertainment Industry Tax Credit Programs › Subchapter A - Motion Picture Production Tax Credit Program › Section I-1605 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. Terms not otherwise defined in this Chapter shall have
					 the same meaning given to them in
					 R.S.
					 47:6007, unless the context clearly requires
					 otherwise.
B. In this Chapter, the following terms shall have the
					 meanings provided herein, unless the context clearly indicates otherwise.
Allocatee
-an individual or entity that
					 received an allocation of investment tax credits.
Allocator
-an individual or entity that
					 makes an allocation of investment tax credits.
Base Investment
-cash or cash equivalent
					 investment made and used for:
a. production expenditures in the state for a
					 state-certified production;
b. infrastructure expenditures in the state for the
					 development of a state-certified infrastructure project. Infrastructure
					 Expenditures shall include, but are not limited to, expenditures for
					 infrastructure project development, film and television production spaces,
					 post-production equipment, facilities, equipment for distribution companies
					 domiciled within Louisiana, transportation equipment, land acquisition and
					 closing costs, construction costs, design and professional consulting fees
					 associated with the state-certified infrastructure project, furniture,
					 fixtures, equipment, and financing costs. Infrastructure expenditures shall not
					 include indirect costs, any amounts that are later reimbursed by a third party,
					 any costs related to the allocation or transfer of tax credits, any amounts
					 that are paid to persons or entities as a result of their participation in
					 profits from the exploitation of the state-certified Infrastructure
					 Project.
Begin Construction-for projects with applications
					 filed after August 1, 2007,
construction of an infrastructure project
					 shall begin when:
a. in the case of a new building, either:
i. materials to be used in the project, worth more than 5
					 percent of the construction budget, are placed at the project site; or
ii. other work is performed on the site which is visible
					 from a simple inspection and reasonably indicates that the work has begun, such
					 as substantial land fill, soil reinforcement or pouring of a foundation. The
					 following are examples of services which do not indicate that work has begun;
					 services of surveyors or engineers; cutting or removal of trees; demolition of
					 existing structures or clearing of the land surface;
b. in the case of a retrofit project to an existing
					 structure:
i. materials to be used in the project, worth more than 10
					 percent of the construction budget, are placed at the project site; or
ii. equipment to be used in the project, worth more than 20
					 percent of the construction budget, is placed and operational at the project
					 site.
Commencement of Production
-beginning
					 principal photography or equivalent process.
Commissioner
-Commissioner of
					 Administration.
Cost Report of Production Expenditures
-a
					 report of production expenditures formatted in accordance with LED accounting
					 guidelines, which may be issued with initial certification, posted on LEDs
					 website or otherwise communicated by LED to applicant in writing.
Department
-Louisiana Department of
					 Economic Development, or its successor.
Developer
-a person responsible for the
					 development of a state-certification infrastructure project.
Director
-Director of the Office of
					 Entertainment Industry Development (the office).
Division
-Division of
					 Administration.
Expended in the State
-
a. an expenditure to lease immovable property located in
					 the state;
b. an expenditure as compensation for services performed in
					 the state; or
c. an expenditure to purchase or lease tangible personal
					 property within the state where the transaction is subject to the state sales
					 or lease tax provisions of Title 47 of the Louisiana Revised Statutes of
					 1950:
i. a transaction that is subject to the states sales or
					 lease tax provision of Title 47 of the Louisiana Revised Statutes of 1950 shall
					 include transactions that are also subject to statutory exclusion or
					 exemption.
Expenditure
-actual payment of cash or cash
					 equivalent, paid by or on behalf of a state certified production or
					 state-certified infrastructure project, exchanged for goods or services, as
					 evidenced by an invoice, receipt or other such document.
Indirect Costs
-costs of operation that are
					 not directly associated with a specific production or infrastructure project,
					 such as clerical salaries, general administrative costs and other overhead
					 charges
.
Louisiana Publisher
-a company primarily
					 engaged in trade, professional or scholarly publishing, which sells or licenses
					 copyrights or the right of use of copyrights in its ordinary course of
					 business, and has a physical location in Louisiana with at least one full-time
					 employee working at such a location on a regular basis. Registering with the
					 Louisiana Secretary of State or appointing a registered agent in Louisiana does
					 not establish a physical location in Louisiana. A procurement company shall not
					 be considered a Louisiana publisher.
Louisiana Resident-
a natural person who is
					 a legal resident, who has been domiciled in and maintained a permanent place of
					 abode in Louisiana for no less than 12 consecutive months, and who has filed a
					 Louisiana state income tax return.
Louisiana Resident, Resident,
or
Resident of Louisiana-
repealed.
a. - b. repealed.
Louisiana Screenplay
-
a. a screenplay created by a Louisiana resident; or
b. a screenplay purchased, optioned, licensed or otherwise
					 acquired from a Louisiana publisher, in each case, as evidenced by documents
					 such as certificate of authorship, a WGA registration certificate, the records
					 of the United States Copyright Office, or a reasonable legal opinion issued to
					 the office.
Non-Applicable Production Expenditures
-the following expenses are not eligible to earn tax credits:
a. expenditures for marketing and distribution;
b. non-production related overhead;
c. amounts reimbursed by the state or any other
					 governmental entity;
d. costs related to the transfer of tax credits;
e. amounts that are paid to persons or entities as a result
					 of their participation in profits from the exploitation of the
					 production;
f. the application fee;
g. state or local taxes;
h. any other expenditure not allowed by law or
					 regulation.
Office
-Office of Entertainment Industry
					 Development.
Payroll
-all salary, wages and other
					 compensation, including benefits paid to an employee and taxable in this state.
					 However, payroll for purposes of the additional tax credit for
					 Louisiana-resident payroll shall exclude any portion of an individual salary in
					 excess of one-million dollars.
Person
-there are two kinds of persons;
					 natural and juridical.
a. A natural person is a human being.
b. A juridical person is an entity to which the law
					 attributes personality, such as a corporation, partnership or limited liability
					 company.
Procurement Company
-any person or entity
					 that purchases, leases or otherwise obtains goods or services from sources
					 outside of the state, for the ultimate use, benefit or enjoyment of a
					 state-certified production company.
Production Expenditures
-preproduction,
					 production and postproduction expenditures directly incurred in this state that
					 are directly used in a state-certified production, whether the production
					 company directly contracts or subcontracts such work, including without
					 limitation the following:
a. set construction and operation;
b. wardrobes, make-up, accessories, and related
					 services;
c. costs associated with photography and sound
					 synchronization, lighting, and related services and materials;
d. editing and related services;
e. rental of facilities and equipment;
f. leasing of vehicles;
g. costs of food and lodging;
h. digital or tape editing, film processing, transfer of
					 film to tape or digital format, sound mixing, special and visual effects (if
					 services are performed in Louisiana);
i. total aggregate payroll (limited to the amount of total
					 payroll expended in Louisiana and which is taxable to the recipient in
					 Louisiana. A Louisiana tax return is required to be filed reflecting the amount
					 of compensation paid while the recipient is located in Louisiana. If the
					 recipient is not a Louisiana resident, then a non-resident income tax return
					 should be filed);
j. music, if performed, composed or recorded by a Louisiana
					 resident, or released or published by a Louisiana-domiciled and headquartered
					 company;
k. airfare, if purchased through a;
l. insurance costs or bonding, if purchased through a
					 Louisiana company;
m. payments to a loan-out or personal services corporation
					 for the services of an out-of-state hire are allowed as long as the services
					 are performed in Louisiana on a state certified production;
n. cost of the independent audit.
Production Facility
-a physical facility
					 that provides the goods or services necessary for completing the major
					 activities of motion picture production.
Program Issuance Cap
-for applications
					 submitted on or after July 1, 2017, the office may issue no more than
					 $150,000,000 in tax credits ("total cap") in any fiscal year, with $7,500,000
					 reserved for qualified entertainment companies ("QEC cap"), $7,500,000 reserved
					 for Louisiana screenplay productions ("LA screenplay cap"), $15,000,000
					 reserved for independent film productions ("independent film cap"), with the
					 remaining $120,000,000 available for general allocation to any state certified
					 production ("general cap").
Qualified Louisiana Production Company
-an
					 LED-approved motion picture production company, meeting the eligibility
					 criteria for §1615, Louisiana Screenplay Credit.
Secretary
-Secretary of the Department of
					 Economic Development.
Source within the State
-a physical
					 facility in Louisiana, operating with posted business hours and employing at
					 least one full-time equivalent employee.
State-Certified Infrastructure
					 Project
-shall mean a film, video, television, and digital production
					 and postproduction facility, and movable and immovable property and equipment
					 related thereto, or any other facility which supports and is a necessary
					 component of such proposed state-certified infrastructure project, all as
					 determined and approved by the office, the Secretary of the Department of
					 Economic Development, and the Division of Administration under such terms and
					 conditions as are authorized by this Section. The term
infrastructure
					 project
shall not include movie theaters or other commercial
					 exhibition facilities.
State-Certified Production
-a production
					 approved by the office and the secretary which is produced by a motion picture
					 production company domiciled and headquartered in Louisiana and which has a
					 viable multi-market commercial distribution plan.
Transferee
-an individual or entity that
					 receives a transfer of investor tax credits.
Transferor
-an individual or entity that
					 makes a transfer of an investor tax credit.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 47:6007.