Entertainment Industry Tax Credits

image66

MOTION PICTURE

The Facts:

Louisiana’s Motion Picture Production Tax Credit program provides motion picture productions up to a 40% tax credit on total qualified in-state production expenditures, including resident and non-resident labor.

Provides up to a 40% tax credit (25% base credit; 10% increase for Louisiana screenplay productions, 5% increase if outside of the New Orleans Metro Statistical Area).

  • $50,000 minimum in-state expenditure requirement for Louisiana screenplay productions.
  • $300,000 minimum in-state expenditure requirement on all other eligible productions.
  • The maximum amount of credits that can be issued is $150 million per fiscal year.
  • The maximum amount of credits that can be claimed is $180 million per fiscal year.
  • Tax credits may be used to offset personal or corporate income tax liability in Louisiana.
  • Tax credits may be transferred back to the State for 90% of face value (requires a 2% transfer fee, which results in an 88% net).


The program is open to all motion picture production companies headquartered and domiciled in Louisiana producing nationally or internationally distributed motion pictures with total Louisiana expenditures exceeding $300,000, or $50,000 for Louisiana screenplay productions.

  

BASE INVESTMENT CREDIT RATES (APPLICABLE TO ENTIRE ELIGIBLE SPEND):

25% base credit

10% increase for Louisiana screenplay productions (if production is based on a screenplay created by a Louisiana resident, with expenditures greater than $50,000, but no greater than $5 million)

5% increase for out of NOLA zone filming (if production’s office base and at least 60% of principal photography occurs outside of the New Orleans Metropolitan Statistical Area)


Base investment credit rate increases may be combined as follows;

30% total – 25% base plus 5% out of zone filming; or

35% total – 25% base plus 10% LA screenplay increase; or

40% total – 25% base plus 5% out of zone filming, and 10% LA screenplay

**Total Credits cannot exceed 40% of the base investment


FOR MORE INFORMATION, PLEASE CONTACT:

Stephen Hamner

Division Director, Film & Television

Email: stephen.hamner@la.gov

225.342.4838


Amanda Hafford

Assistant Director, Film & Television

Email: amanda.hafford@la.gov

225.342.5403


Website: www.louisianaentertainment.gov

PRODUCTION PROJECTS

Payroll for Louisiana residents employed in connection with a state-certified production is eligible for an additional tax credit of 7.2% of said payroll up to a salary limit of $1 million for any individual.


Payroll for college and vocational technical students in connection with a state-certified production is eligible for an additional 0.072% tax credit of such payroll. Starting July 1, 2018, this credit increases to 10%. This tax credit cannot be combined with the Louisiana resident tax credit. No annual cap on production tax credits.

INFRASTRUCTURE PROJECTS

No more than $10 million may be granted per state certified infrastructure project.


No more than $60 million per year for all state certified infrastructure projects.


FOR MORE INFORMATION, PLEASE CONTACT: 

Philip Mann

Executive Director

Live Performance and Music Industry Development

Phone: (225) 342-5521

Email: Philip.mann@la.gov


Website: www.louisianaeconomicdevelopment.com.

DIGITAL INTERACTIVE MEDIA AND SOFTWARE TAX CREDIT

The Facts

The Digital Interactive Media and Software Development Incentive provides a tax credit of 18% of qualified production expenditures for state-certified digital interactive productions in Louisiana for applications submitted on or after July 1, 2017 and subsequently approved by the office and secretary.


For applications for state-certified productions tax credits shall be earned at the rate of 18% of the base investment. submitted on or after July 1, 2017 and approved by the office and secretary,


To the extent that the base investment is expended on payroll for Louisiana residents employed in a state-certified production, a digital interactive media company is allowed an additional tax credit of 7% of the payroll.


Tax credits are refundable and allowed against the individual or corporate income tax liability of the companies or financiers of the project


Certified applicants may elect to receive a one-time rebate of credits equal to 85% of their face value in lieu of tax credits. Application and other filing fees apply.


FOR MORE INFORMATION, PLEASE CONTACT:


Lacey McRight-Chataignier

Director

Phone: (225) 342-5553

Email: lacey.chataignier@la.gov


Website: www.louisianaeconomicdevelopment.com

For more information on all, Entertainment Industry Tax Credits, please visit: