Location spend includes pre-production, production, & post-production expenditures directly incurred in Louisiana by a state-certified production; including without limitation expenses such as above-the-line and below-the-line expenses, equipment rental & purchases, travel, props, location fees, payroll, editing, and sound mixing.
A tax credit can be applied toward Louisiana state income tax. Since most motion picture investors do not have Louisiana tax liability, the credit can not be utilized by the production. This is why the tax credit is fully transferable. Anyone may purchase the tax credit. Generally, tax credit brokers purchase a motion picture project’s earned tax credits. A production must apply to the program to become a state-certified production. The application is available online at www.LouisianaEntertainment.gov.
There is NO cap.
In order for Insurance premiums to qualify as an expenditure for the purposes of earning Louisiana Motion Picture Production tax credits, the insurance company must have a physical office in Louisiana, be duly licensed to write insurance in Louisiana and any premiums collected must be subject to the Louisiana insurance premium tax. Only the amounts collected and subject to Louisiana taxes will qualify.
Money that is spent outside of Louisiana or expenditures that are indirect or not production-related do not qualify for the tax credit. For example, money spent renting a Ferrari in Louisiana as a prop for a production is acceptable. The indirect costs of buying a Ferrari, which clearly has value outside of the production, will not qualify. Expenditures from a “pass through” or company with no Louisiana resident employees and/or physical address that does not maintain actual office hours will not qualify. Also, your application fee and costs for transferring credits or marketing and distribution expenditures.
Payroll for non-residents as well as the pay for anyone not on the direct payroll of the production do not qualify for the additional 5% credit.
The 30% credit includes the entire spend on payroll (above and below the line) regardless of where the cast or crew are domiciled. To earn an additional 5% on local payroll, labor must be a resident of Louisiana.
Any person who maintains a permanent residence within the state of Louisiana and spends in the aggregate more than six months of each year is considered a Louisiana resident.
Please direct additional inquiries concerning the Tax Credit program to Louisiana Entertainment who administers the program. You may find what your looking for here.