Louisiana Entertainment Tax Credits Provide Incentives to Grow a Key Louisiana Industry
In the 2013 session, the Louisiana Legislature made key changes to three of the Louisiana entertainment tax credits: the Motion Picture Investor Tax Credit, the Musical and Theatrical Production Income Tax Credit, and the Sound Recording Investor Tax Credit. Businesses and individuals making use of these credits should consult their tax planning professional to make sure they are up to date with the new changes.
Motion Picture Investor Tax Credit
In Act No. 178, the Legislature amended the Motion Picture Investor Tax Credit to develop a new process for Production Audit Reports that must be turned into the state. In addition, the Act shortens the time frame in which the state must be given notice that tax credits have been transferred from sixty days to ten days. The Act also sets a time frame by which the state must respond to tax credit reports. Finally, the Department of Economic Development has been instructed to promulgate rules on related party transactions, and we will keep you posted when these go into effect.
Musical and Theatrical Production Income Tax Credit
In Act No. 197, the Legislature amended the Musical and Theatrical Production Income Tax Credit in several ways. First, the Act preserves an infrastructure credit available to performing arts facilities that are owned by Louisiana colleges and universities or their supporting foundations and that are located on university property. Second, expenditures attributable to non-performance space, e.g. a restaurant, cannot make up more than 25% of the total cost of the infrastructure project. Finally, the Act completely eliminated the transportation credit for shows originating in Louisiana before going on a national tour; no credits will be issued for any out-of-state expenditures.
Sound Recording Investor Tax Credit
Finally, in Act No. 385, the Legislature pushed back the sunset date for the Sound Recording Investor Tax Credit by five years. This credit will now remain active until January 1, 2020. In addition, the Act lowered the qualifying amount for in-state investors to $5,000. Out-of -state investors will still only qualify for credits based on expenditures over $15,000.
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To learn more about the Louisiana entertainment tax credits, see louisianaentertainment.gov. To learn more about all of the tax credits, business incentives, and programs offered by Louisiana Economic Development and how they could benefit your business, click here.
Allen & Gooch is providing this legal update for informational purposes only. This article should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. You should consult your own attorney concerning your particular situation and any specific legal questions you may have.