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-6535 - 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, 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.
c. for applications by qualified music
				companies ("QMC's") for state certified productions, received on or after June
				18,2019:
i. to the extent that the base
				investment by a QMC is expended on a sound recording production of a resident
				copyright, the investor shall be allowed an additional ten percent increase in
				the base investment rate.
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 applicant's
				cost report of production or project expenditures. Applicants shall submit an
				advance deposit at the time of application, and shall later be assessed the
				department's actual cost based upon an hourly rate as provided in R.S.
				36.104.1, in the amounts set forth below:
a.
				for applicants with project expenditures of at least $10,000 but less than
				$25,000, an advance deposit of $750, with a maximum fee of $1,500;
b. for applicants with project expenditures
				of at least $25,000, an advance deposit of $1,500, with a maximum fee of
				$3,000;
c. for applicants with
				project expenditures of at least $50,000, but less than $100,000, an advance
				deposit of $2,500, with a maximum fee of $5,000;
d. for applicants with project expenditures
				of more than $100,000, an advance deposit of $3,750, with a maximum fee of
				$7,500;
e. any unused balance shall
				be refunded to the applicant within 60 days following receipt of CPA's final
				invoice and payment of all CPA costs.