Film New Orleans

What is the benefit called?

Motion Picture Investor Tax Credit

How much is the benefit?

A 30% investor tax credit is granted based upon the total in-state expenditures of a motion picture production. An additional 5% labor tax credit is given for the hiring of Louisiana residents. The tax credits are fully transferable.

If the benefit is based on “location spend” what exactly does “location spend” mean?

Location spend applies to the total expenditures made (including pre-production, production, & post-production) to an entity based in Louisiana & licensed to do business here. These in-state expenditures must be run through an LLC based in Louisiana which runs the expenditures through a Louisiana bank account. It is advised to set up your LLC as soon as possible to ensure your Louisiana expenditures qualify for credit.

Does local spend include the following?

Foreigners working in Louisiana? The 30% credit includes the entire spend on payroll regardless of where the cast or crew are domiciled. To earn the additional 5% on local hire, that labor must be a resident of Louisiana (which is defined as a person with permanent residence in Louisiana for at least six months of the year). Finance Fees? Yes, as long as it is purchased from a Louisiana company. Bond Fees? Yes, as long as it is purchased from a Louisiana company. Per diems? Yes.

Eligibility – who can access the incentive?

A motion picture project includes a feature-length film, video, television series (and MOWs), or commercial made in Louisiana (only television coverage of news & athletic events is excluded). The motion picture project must spend at least $300,000 to qualify for the tax credits.

How does the mechanism work and what is the process?

A production must apply to the program to become a state-certified production. The application available is available online at www.LouisianaEntertainment.gov  and must be submitted with a fee to the LED Office of Entertainment Industry Development. The tax credit is earned at the time the expenditures are made. However, the credits cannot be applied or transferred until the expenditures are certified by the LED Office of Entertainment Industry Development. Before the LED Office of Entertainment Industry Development certifies expenditures; the production must submit a cost report of production expenditures audited and certified by an independent certified public accountant licensed by the state of Louisiana.

How certain is it? (ie: are the criteria objective or subjective?)

The criteria for earning the tax credits are totally dependent upon the production making the expenditures in the state of Louisiana, which will be verified by the audit.

What percentage of the film has to be shot in this country/state and what percentage of the spend needs to be spent here?

A production must spend at least $300,000 in the state of Louisiana to qualify.

Which countries/states does this country currently have co-production treaties with?

The USA does not have any co-production treaties.

Are there any limitations?

The production expenditures must be spent with a Louisiana company to qualify.

Where do the funds come from?

This is a tax credit program (not a refund or rebate) in which the production earns tax credits that are fully transferable.

Who decides?

The LED Office of Entertainment Industry Development determines if a project qualifies for the program based on the application and in accordance with Act 456.

What are the audit requirements?

The audit requirements can be found here.

If a co-production is required, what are the conditions for obtaining co-production status, the co-production guidelines and what are the tax consequences?

A co-production is not required.

When will the money be received?

The credits are earned upon certification and the production determines whether to utilize the credits or transfer them.

Is there a “cap” on the amount available, both on a film by film basis and in any fiscal year?

There is NO cap.

What is the current sales tax rate (%) in this country/state?

The sales tax varies among municipalities, the state imposed sales tax is at a rate of 4%.

Is sales tax recoverable and if so on what?

It is not recoverable.

To what extent will cast and crew traveling to this country/state be taxed there (ie: What is the withholding tax regime like, national insurance contributions, social security charges, etc.)?

Out of state residents must file a non-resident income tax return in accordance with state and federal law. For more information, please visit www.irs.gov

Are there any other taxes or costs that producers should know about? (ie: corporation tax on the production company, etc)?

The production should consult with their Louisiana counsel or accountant to determine if there are any applicable taxes or associated costs.