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NOTICE Tax credits may not be sold or otherwise transferred until certified.
La.R.S.47:6007(C)(1) . . . credits cannot be applied against a tax or transferred until the expenditures are certified by the office and the secretary of the Department of Economic Development. . . . (C)(2)(c)(v) For purposes of allowing tax credits against state income tax liability and transferability of the tax credits, the tax credits shall be deemed earned at the time the expenditures are made, provided that all requirements of this Subsection have been met and after the tax credits have been certified. . . (C)(5)(b) Transferors and transferees shall submit to the office, and to the Department of Revenue in writing, a notification of any transfer or sale of tax credits within thirty days after the transfer or sale of such tax credits. The notification shall include the transferor's tax credit balance prior to transfer, a copy of any tax credit certification letter(s) issued by the office and the secretary of the Department of Economic Development and, in the case of an infrastructure project, to the office, the secretary, and the division of administration, . . . a copy of the credit certificate, . . . (C)(5)(c) Failure to comply with this Paragraph will result in the disallowance of the tax credit until the taxpayers are in full compliance. . . (C)(5)(e) To the extent that the transferor did not have rights to claim or use the credit at the time of the transfer, the Department of Revenue shall either disallow the credit claimed by the transferee or recapture the credit from the transferee through any collection method authorized by R.S. 47:1561. The transferee's recourse is against the transferor.
If you have any questions or need to know if credits have been certified (production or infrastructure) please contact our office at 225.342.5403 or led-entertainment@la.gov.
For state-certified productions approved by the Office of Entertainment Industry Development:
If the total base investment is greater than three-hundred thousand dollars ($300,000), each investor shall be allowed a tax credit of twenty-five percent (25%) of the base investment made in the state of Louisiana.
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| EFFECTIVE IMMEDIATELY FOR ALL FINAL CERTIFICATIONS: In accordance with state law and policies of Louisiana Economic Development, prior to any certification of the state-certified production, the motion picture production company shall submit to the Office of Entertainment Industry Development a cost report of production expenditures audited and certified by an independent certified public accountant in accordance with the established auditing guidelines. Click HERE for a copy of the guidelines and HERE for Act 456. |
Purpose
The purpose of this tax credit is to encourage development in Louisiana of a strong capital base for motion pictures, in order to achieve a more independent and economically sustainable film and video industry. The purpose serves to attract private investment for the production of motion pictures and develop a Louisiana indigenous entertainment industry utilizing tax credits that encourage investments in Louisiana produced films.
Application for State Certification
The Commission provides a standard form which applicants will use to apply for state certification. The application contains detailed descriptions of the following:
- Name of the production company.
- Name and phone number of a company contact person.
- Pre-production date through last production date in Louisiana.
- Louisiana production office address.
- Louisiana production office phone number.
- Total budget of the film.
- Total expenditures in Louisiana.
- Total percentage of film being shot in Louisiana.
- The level of employment of Louisiana cast and crew.
- Completion bond.
- Script (including a synopsis); and principal creative elements list (principal cast, producer, and director).
- Detailed Distribution Plan.
- A Statement that the project meets the definition of state-certified.
Submission and Review Procedure
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Applicants must submit their completed application to the director of the Office of Entertainment Industry Development.
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Submitted applications will be reviewed and evaluated by the director.
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Upon determination that an application meets the criteria for this program, the director will send a certification letter to the investors and the secretary of the Department of Revenue.
Time credit earned
The tax credit is earned at the time the investment is made in a state-certified production.
Use of the credit
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Corporation must claim on their corporation income tax return.
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Corporate partners or members on their corporation income or corporation franchise tax returns.
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Individual partners or limited liability members must claim their share of the credit on their individual tax returns.
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Partners or limited liability members that are estates must claim their share of the credit on their fiduciary income tax returns.
Unused credit
In the event the entire credit cannot be used in the year earned, then any remaining credit may be carried forward and applied against income tax liabilities for the subsequent ten years.
Reporting Requirements
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A report evidencing the total base investment made in Louisiana.
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A completed expenditure/questionnaire report (form to be provided by the Commission).
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A final cast and crew list for the project.
Recapture of credits
If an investor received credits for funds not actually invested in and expended in a state-certified production within twenty-four (24) months of date the credits were earned ("twenty-four month investment period"), then the investor's state income tax for such taxable period will be increased by the amount necessary for the recapture of those previously granted credits.
Procedure for Recovery
The secretary of Revenue may recover investor credits previously granted to an applicant, but later disallowed, through any collection remedy authorized by state law.
**Please note that all properly formatted documentation submitted to the Office of Entertainment Industry Development and Louisiana Economic Development for signature will be reviewed, processed and returned to the respective parties within a reasonable amount of time (if there are no questionable errors or problems with said documents). Thank you.
