Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 65 - Louisiana Sound Recording Investor Tax Credit Program › Section I-6533 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. The following
				terms shall have the meanings provided herein, unless the context clearly
				indicates otherwise.
Base Investment
-the actual investment made
				  and expended in the state by a state-certified production as production
				  expenditures incurred in this state that are directly used in state-certified
				  production or productions.
a. a
				state-certified production as production expenditures incurred in this state
				that are directly used in state-certified production or productions;
b. a person or other legal entity in the
				development of a state-certified infrastructure project. Infrastructure
				Expenditures shall include, but are not limited to, expenditures for sound
				recording infrastructure project development, sound recording production
				spaces, sound production equipment, facilities, equipment for sound recording
				companies domiciled within Louisiana, sound processing and recording equipment,
				land acquisition and closing costs, construction costs, design and professional
				consulting fees associated with the state-certified infrastructure project,
				furniture, fixtures, percussion, pianos, keyboards, organs, musical and
				amplification equipment, and financing costs which shall remain permanently
				located within Louisiana for the useful life of the object. Infrastructure
				Expenditures shall not include indirect costs, any amounts that are later
				reimbursed by a third party, any costs related to the allocation of tax
				credits, or 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.
Department
-the Louisiana Department of
				  Economic Development, or its successor
Expended in the State
-an expenditure to
				  acquire property from a source within the state which is subject to state sales
				  or use tax, or an expenditure as compensation for services performed within the
				  state which is subject to state income tax.
Holder
-the holder of a partnership interest,
				  membership interest, or other similar ownership interest on any entity not
				  taxed as a corporation.
Investor
-any individual or entity that makes
				  an investment in a state-certified production, including but not limited to any
				  individual or entity that is identified as a source of funds for a state
				  certified production on its expenditure verification report, or any tax credit
				  broker, individual or entity identified as an irrevocable designee for receipt
				  of tax credits.
Production Expenses
-production expenditures
				  in the state directly relating to and proportionate with work performed in
				  Louisiana on a state-certified production. In qualifying submitted expenditures
				  as production-related costs LED may determine whether such expenditures
				  represent legitimate expenditures for the actual cost of related goods or
				  services, having economic substance and a business purpose related to the
				  certified production and not constructive dividends, self-dealing, inflated
				  prices or similar transactions entered into for the purpose of inflating the
				  amount of tax credits earned rather than for the benefit of the production. See
				  §1641 for illustrative examples of
				  expenditures commonly associated with sound recording production
				  projects.
Project
Completion-completion or end date
				  outlined in the project application, or as otherwise approved in writing by
				  LED.
Qualified Music Company or "QMC"
-an entity
				  authorized to do business in Louisiana, engaged directly or indirectly in the
				  production, distribution and promotion of music, certified by the secretary as
				  meeting program eligibility criteria, and executing a contract providing the
				  terms and conditions for its participation.
Related Party Transaction
-a transaction
				  between parties deemed to be related by common ownership or control under
				  generally accepted auditing principles.
Resident
-a person domiciled in the state.
				  Proof of domicile may include, but not be limited to, a drivers license issued
				  by the state of Louisiana, or similar evidence which reasonably establish both
				  identity and residency.
Resident Copyright
-the copyright of a
				  musical composition written by a Louisiana resident or owned by a
				  Louisiana-domiciled music company as evidenced by documents of ownership such
				  as registrations with the United States copyright office or performing rights
				  organizations which denote authors and music publishing entities.
Secretary
-Secretary of the Louisiana
				  Department of Economic Development.
Series
-a series of sound recordings
				  occurring over a 12-month period may be considered for qualification.
				  Illustrative examples of a permissible series include recordings made by a
				  single artist or a singularly titled radio broadcast series. When determining
				  eligibility the department shall consider common attributes, business purpose
				  of the transactions and any other relevant factors. Combining multiple
				  productions or recordings solely to achieve minimum spending requirements is
				  not permitted.
Sound Recording
-a recording of music,
				  poetry, or spoken-word performance made in Louisiana, in whole or in part. The
				  term
sound recording
shall not include the audio portions of
				  dialogue or words spoken and recorded as part of television news coverage or
				  athletic events.
Sound Recording Production Company
-a company
				  engaged in the business of producing sound recordings as defined in this
				  Section.
Sound recording production company
shall not mean or
				  include any person or company, or any company owned, affiliated, or controlled,
				  in whole or in part, by any company or person, which is in default on a loan
				  made by the state or a loan guaranteed by the state, nor which has ever
				  declared bankruptcy under which an obligation of the company or person to pay
				  or repay public funds or monies was discharged as a part of such
				  bankruptcy.
State-Certified
Musical Recording Infrastructure
				  Project
-repealed.
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
Production
-a sound recording
				  production or a series of productions occurring over the course of a 12-month
				  period, including but not limited to master and demonstration recordings, and
				  costs related to such production or productions that are approved by the
				  Louisiana Department of Economic Development.