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-1611 - Additional Program Provisions - Infrastructure

Current through Register Vol. 50, No. 6, June 20, 2024
A. Tax credits may be granted only for
				  infrastructure projects directly related to the acquisition and construction of
				  a film, video, television, or video production or postproduction facility and
				  shall not apply to any infrastructure project such as a hotel or lodging
				  facility, golf course, or retail shopping facility or other facility which the
				  department and the division deem unrelated to such purposes.
1. If an infrastructure project may be used
				  for other purposes unrelated to the production or postproduction activities,
				  tax credits may be granted for that portion of the project that is deemed by
				  the department and the division to be necessary to support or secure production
				  or postproduction activities.
2. In
				  the case of immovable assets deemed related, an applicant must provide
				  assurances that:
a. such assets will
				  exclusively support the initially certified film infrastructure project;
				  and
b. that the applicant will not
				  divert the use of the assets to purposes that do not promote or provide for the
				  productions within the state of Louisiana.
3. In the case of movable assets deemed
				  related, an applicant must provide assurances that:
a. the moveable assets shall remain in
				  Louisiana, for as long as specified in any agreements pursuant to §
													1611. A.4 below;
b. be used in the production
				  of motion pictures or other visual media productions within the state of
				  Louisiana; and
c. used for not less
				  than 80 percent of the asset's useful life.
4. Assurances may be secured by appropriate
				  agreements, including, but not limited to the following terms and conditions:
a. a requirement of approval prior to sale of
				  such assets;
b. a requirement for a
				  minimum number of years before such assets may be transferred to a different
				  owner;
c. limitations on
				  transferability of the tax credits for current or future holders;
d. a reserve fund that may be re-captured by
				  the state; and/or
e. a structured
				  release of tax credits.
5. Any conditions to meet the requirements of
				  this Subsection shall be explicitly stated in the initial certification issued
				  for the project.
a. In the event an applicant
				  fails to meet the conditions, as specified in the certification letter, any
				  such acts, omissions or failures shall constitute a default, and the office
				  shall retain all rights to modify the terms and conditions of the
				  certification, and to reclaim disbursed credits in an amount commensurate with
				  the scope of the unmet performance objectives and the foregone benefits to the
				  state. Reclamation shall not begin unless the office has determined, after an
				  analysis of the benefits of the project to the state and the unmet performance
				  objectives, that the state has not satisfactorily or adequately recouped its
				  costs through the benefits provided by the project.