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FILM TAX CREDITS

Louisiana has firmly established itself as one of the premier filming locations in all of North America. Major studios, networks and independent producers are taking advantage of the Louisiana Motion Picture Incentive Program (Program). The state film office reports that in 2008 alone more than $32 million in incentives were granted. This brings the totals to more than $443 million dating back to the Programs origin in 2002. The total impact from film productions in Louisiana in that time is estimated to be in excess of $2 billion, including over $200 million from payroll.

Created in 2002, and regularly amended, the Program authorizes transferable Louisiana income tax credits to encourage development of a strong capital base for motion pictures in order to achieve a more independent and economically sustainable film and video industry in the state. 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.

Current state law provides transferable income tax credits equal to 30% of the production’s expenses incurred directly in Louisiana, plus an additional 10% (5% through June 30, 2015) employment tax credit on amounts paid to Louisiana residents (payroll). These tax credits are available to individuals, corporations, trusts and partnerships with Louisiana tax liabilities and are also a valuable tool to producers in reducing their production budget or increasing their return to investors or financiers.

Qualifying Productions

The tax incentives offered by the Program apply to productions which meet certain minimum thresholds and other qualifying criteria, including:

  • Feature-length motion pictures
  • Television pilots, series or movies of the week
  • Animated feature films
  • Animated short films
  • Webisodes or any other digitally distributed motion picture
  • Documentaries
  • Commercials

Live sports events, news programs are excluded.

Additional incentive programs include:

  • Digital Interactive Media and Software Development Incentive
  • Musical and Theatrical Production Tax Incentive
  • Sound Recording Investor Tax Credit

Certification

All film tax credit projects require the submission of a verification report of the cost report of production expenditures and infrastructure expenditures prepared by an independent certified public accountant (to be selected by the Office of Entertainment Industry Development starting January 1, 2016) prior to certification by the Louisiana Department of Economic Development’s office of Entertainment Industry Development (OEID).

For additional information, please check the state’s website at www.louisianaentertainment.gov

RBM has performed these engagements since mid-2006 for productions located all throughout the state of Louisiana. Our experienced personnel and investment in technology to perform these engagements ensures that you will obtain the proper amount of tax credits in an efficient and timely manner.

For more information about our Film and Television Tax Credit audit services, contact Vance Bailes or Billy Weeks at (318) 221-3615.