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-1633 - 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
- shall mean the actual
					 investment made and expended in the state by:
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 or infrastructure
					 project.
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.
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.
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
-a sound recording capital infrastructure project and base
					 investment related to such project that are approved by the Louisiana
					 Department of Economic Development.
State-Certified Production
-a sound
					 recording production or a series of productions occurring over the course of a
					 12-month period, and costs related to such production or productions that are
					 approved by the Louisiana Department of Economic Development.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 47:6023.