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 B - Motion Picture Production Tax Credit Program-Qualified Entertainment Company Payroll Tax Credit Program › Section I-1635 - Rules of Application

Current through Register Vol. 50, No. 6, June 20, 2024
A. The
				  sound recording investor tax credit authorized by
				  R.S.
				  47:6023(C) may be earned and
				  claimed as follows.
1.There is authorized a
				  credit against the state income tax for investments made in state-certified
				  productions and state-certified sound recording infrastructure projects, which
				  credit will be earned by investors at the time expenditures are certified by
				  the Louisiana Department of Economic Development according to the total base
				  investment certified for the sound recording production company per calendar
				  year. No credit shall be allowed for any expenditures for which a credit was
				  granted under
				  R.S.
				  47:6007.
2. Applicants meeting the following criteria
				  shall be eligible to receive tax credits as follows:
a. for state-certified productions initially
				  certified prior to July 1, 2015:
i. 25
				  percent tax credit, if the total base investment is more than $15,000, or if a
				  resident of this state, if the total base investment is more than
				  $5,000;
b. for
				  state-certified productions initially certified on and after July 1, 2015:
i. 18 percent tax credit, if the total base
				  investment is more than $15,000, or if a resident of this state, if the total
				  base investment is more than $5,000.
3. An application for initial certification
				  of a project shall be submitted to the Louisiana Department of Economic
				  Development prior to the granting of the credit, and the granting of the
				  credits under this Rule shall be on a first-come, first-served basis based on
				  when the proper cost reports as defined here under RS 47:6023, are submitted to
				  DED for certification of tax credits, which shall be determined by the date of
				  a signed receipt via certified or registered mail, courier, hand or other
				  delivery, or the date on a proof of transmission via facsimile and/or by the
				  DED stamped and staff initialed date. The Secretary of the Department of
				  Economic development shall determine annually the annual aggregate maximum. If
				  the total amount of credits earned for any particular year exceeds the
				  aggregate amount of tax credits allowed for that year, the excess will be
				  treated as having been earned on the first day of the subsequent year.
a. Applications for a series of productions
				  shall provide the titles, budgets and a brief description for each production
				  in the series. The series of productions, as a combined group, must at least
				  achieve, and may exceed the minimum investment. If one single project may, on
				  its own, exceed the $15,000 minimum threshold, it must make separate
				  application.
4.
				  Individuals or entities may earn sound recording investor tax credits pursuant
				  to
				  R.S.
				  47:6023(C).
5. Any individual or entity shall be allowed
				  to claim the sound recording investor tax credit authorized by
				  R.S.
				  47:6023:
a.
				  whether or not any such individual is a Louisiana resident; and
b. whether or not any such entity is
				  domiciled in Louisiana, organized under Louisiana law, or headquartered in
				  Louisiana.
6. Any
				  applicant applying for the credit shall be required to reimburse the department
				  for any audits required in relation to granting the credit.
7. Application Fee. Applicants with project
				  expenditures greater than $15,000 shall submit a $250 fee with each
				  application. LED shall waive the application fee for applicants with project
				  expenditures up to $15,000.
8.
				  Expenditure Verification Report Fee. The department shall directly engage and
				  assign a CPA to prepare an expenditure verification report on an applicants
				  cost report of production or project expenditures. Applicants shall submit an
				  advance deposit at the time of application, and shall later be assessed the
				  departments actual cost based upon an hourly rate not to exceed $250, in the
				  amounts set forth below:
a. for applicants
				  with project expenditures greater than $5,000 but less than $50,000, an advance
				  deposit of $2,500, with a maximum fee of $5,000;
b. for applicants with project expenditures
				  greater than $50,000, an advance deposit of $5,000, with a maximum fee of
				  $15,000;
c. any unused balance
				  shall be refunded to the applicant within 60 days following receipt of CPAs
				  final invoice and payment of all CPA costs.