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 D - Musical and Theatrical Production Income Tax Credit Program › Section I-1692 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. Terms not otherwise defined in this Chapter shall have
					 the same meaning given to them in
					 R.S.
					 47:6034, unless the context clearly requires
					 otherwise.
B. In this Chapter, the following terms shall have the
					 meanings provided herein, unless the context clearly indicates otherwise.
Base Investment-
actual investment made and
					 expended in this state by a state-certified musical or theatrical
					 production:
a. as production-related costs directly related to in state
					 production; or
b. as capital costs of a state-certified musical or
					 theatrical facility infrastructure project.
a. In the case of construction a new building,
					 either:
i. materials to be used in the project, representing at
					 least 5 percent of total budgeted costs, are placed on the project site;
					 or
ii. other work representing at least 5 percent of the
					 preliminary construction budget and visible from a simple inspection (such as
					 landfill, soil reinforcement or pouring a foundation) is performed on the site.
					 (Such "other work" shall not include services in preparation for construction
					 such as surveying, engineering, cutting or removal of trees, demolition of
					 existing structures, clearing the land surface.)
b. In the case of repairs to or renovation of an existing
					 structure:
i. materials to be used in the project, representing at
					 least 10 percent of the total budgeted costs of materials, are placed at the
					 project site; or
ii. written evidence of other work representing at least 10
					 percent of the preliminary construction budget, is submitted for approval to
					 the department. Such other work may include research, planning and design
					 purposes, such as environmental studies as may be required for historic
					 renovation projects.
Department-
Louisiana Department of
					 Economic Development, or its successor, represented by its secretary or his
					 designee.
Director-director
of the Office of
					 Entertainment Industry Development or his designee.
Expended in the State
or
Expenditures in the State
-shall mean:
a. an expenditure to acquire or lease immovable property
					 located in the state;
b. an expenditure to acquire movable property from a source
					 within the state which is subject to state sales and use tax; or
c. an expenditure as compensation for services performed
					 within the state which is subject to state income tax.
Expenditure
- actual payment of cash or
					 cash equivalent, paid by or on behalf of a state certified production or state
					 certified infrastructure project, exchanged for goods or services, as evidenced
					 by an invoice, receipt or other such document. Cash or cash equivalent
					 transactions may include but not be limited to: commercial or bank financed
					 loans, actual physical transfer of coins and banknotes, other forms of
					 transmission that will turn into cash very quickly, including written checks,
					 credit cards, bank debit cards, and bank wire transfers. However, the receipt
					 of a promissory note, the creation of an account receivable, or the sending of
					 a customer invoice are not, by themselves, evidence of an
expenditure
. Owner-financed transactions will only qualify as
					 an
expenditure
when actual cash or cash equivalent payments
					 are made.
Indirect costs-
costs of operation that are
					 not directly associated with a specific production, such as clerical salaries
					 and general administrative costs.
Infrastructure Expenditures
- expenditures
					 directly related to the state certified infrastructure project, shall include
					 but not be limited to: land and acquisition costs, constructions costs, design
					 fees, furniture, fixtures, equipment purchased subject to a sale agreement or
					 capital lease. Infrastructure expenditures shall not include indirect costs
					 such as general administrative costs, insurance, or any costs related to the
					 transfer or allocation of tax credits. In qualifying submitted expenditures as
					 production-related costs or capital costs related to an infrastructure
					 facility, 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 or
					 facility, 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 or
					 facility.
Limited State-Certified Musical or Theatrical
					 Production-
a musical or theatrical production or a series of
					 productions occurring in Louisiana by a non-profit community theater that held
					 a public performance before an audience within this state during the 2008
					 calendar year which has been certified, verified, and approved in accordance
					 with
					 R.S.
					 47:6034(B)(11).
Louisiana Resident
-
a. a natural person who:
i. is a Louisiana domiciliary;
ii. maintains a permanent place of abode within Louisiana
					 and spends in the aggregate more than six months of each year in Louisiana;
					 or
b. pays taxes to Louisiana on the amount of money paid to
					 such person for which a tax credit is sought.
c. a company:
i. in which a Louisiana resident has ownership or
					 control;
ii. organized or authorized to do business in
					 Louisiana;
iii. that lends the services of such Louisiana resident for
					 a state-certified musical or theatrical production; and
iv. pays taxes to Louisiana on the amount of money paid to
					 such person for such services.
Multi-Purpose Facility
- a building or
					 building complex that is capable of more than one use. Examples may include,
					 but not be limited to: a building complex containing a theatre and a
					 restaurant; one building that can be configured in a variety of ways, such as
					 the ability to host either a live performance stage production or a live
					 sporting event.
Non-Profit Community Theater
-a non-profit
					 resident theater or producing organization incorporated as a 501(C)(3)
					 organization recognized by the Louisiana Secretary of State.
Office
-Office of Entertainment Industry
					 Development.
Originate-
shall include, but not be
					 limited to, state-certified musical or theatrical productions which are:
a. pre-Broadway engagement or remounts;
b. tour or resident production remounts;
b. resident or regional productions;
c. national touring companies producing their first public
					 performance in Louisiana; or
d. concert tours producing their first public performance
					 in Louisiana.
Payroll
-all salary, wages, and other
					 compensation, fringe benefits taxed, sourced or apportioned to Louisiana, and
					 federal payroll taxes such as the employer's portion of FICA/FUTA and workers'
					 compensation insurance costs to the extent purchased from a source within the
					 state. Fringe Benefits including health care costs, 401K contributions, dental
					 plans, and life insurance will be considered if these costs are paid by the
					 employer and costs are apportioned to services performed in Louisiana on a
					 certified project.
Production Expenditures
-a contemporaneous
					 exchange of cash or cash equivalent for goods or services related to
					 development, production, or operating expenditures in this state for a
					 state-certified production performed in Louisiana. (See
					 §1694 for detailed illustrative examples
					 of eligible and ineligible expenditures commonly associated with musical or
					 theatrical production projects.)
Secretary-secretary
of the Department of
					 Economic Development, or his designee.
Series of Productions
- a new musical or
					 theatrical production with multiple Louisiana performances in a 12 month
					 period. Simply rebranding or renaming a series, without substantive creative
					 changes, will make a series ineligible for recertification in subsequent
					 years.
State-Certified Musical or Theatrical
					 Infrastructure Project -
a capital infrastructure project in the state
					 directly related to the production or performance of musical or theatrical
					 productions as defined in this Section, and movable and immovable property and
					 equipment related thereto, or any other facility which supports and is a
					 necessary component of such facility, and any expenditures in the state related
					 to the construction, repair, or renovation of such project, which are
					 certified, verified, and approved as provided for in this Section.
State-Certified Musical or Theatrical
					 Production-
a concert, musical or theatrical production, or a series of
					 productions occurring over the course of a 12-month period, and the recording
					 or filming of such production, which originate, are developed, or have their
					 initial public performance before a paying audience within Louisiana, or which
					 have their United States debut within Louisiana, and the production
					 expenditures, expenditures for the payroll of residents, transportation
					 expenditures, and expenditures for employing college and vocational-technical
					 students related to such production or productions, that are certified,
					 verified, and approved as provided for in this Section. Non-qualifying projects
					 include, but are not limited to non-touring music and cultural festivals,
					 industry seminars, trade shows, and any production activity taking place
					 outside the state of Louisiana
Student-
a natural person enrolled in a
					 Louisiana higher education facility, such as a college, university, or a
					 vocational-technical college.
Transferee-
an individual or entity that
					 receives a transfer of base investment tax credits.
Transferor-
an individual or entity that
					 makes a transfer of base investment tax credits.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 47:6034(E).