Film New Orleans

Locations. Resources. Incentives.

Tax Incentives FAQ

What is the minimum threshold to qualify?

$300,000 in Louisiana expenditures, $50,000 for local Louisiana screenplay productions.

What qualifies for credit?

Only expenditures made for tangible goods and services directly related to the state-certified production within the borders of the State of Louisiana. That includes production payroll for residents and non-residents alike, as long as it is for work performed in Louisiana.

What qualifies for the additional 15% payroll tax credit?

To the extent that base investment is expended on payroll for Louisiana residents employed in connection with a state-certified production, each investor shall be allowed an additional tax credit of 15% for Louisiana resident payroll. The additional 15% credit is only allowed on the first $3 million of a resident’s payroll. Any amount above that shall be eligible for the 30% credit only. It must be expended on a natural person (not a loan-out) in order to qualify for the additional 15%.

How do I know if something is a Louisiana spend?

Services will qualify if performed in Louisiana. Goods will qualify if purchased through a source in Louisiana.

What is a source within the state?

A source is a physical nexus with at least one full-time employee and posted business hours.

 I’ve earned this tax credit and have no Louisiana income tax liabilities. Can I transfer the credit?

For credits that have been earned on productions that applied to OEID before July 1, 2017, the credit is fully transferable. For credits earned on productions that applied to OEID on or after July 1, 2017, the credit is NOT transferable.

 I’ve earned this tax credit and have no Louisiana income tax liability. What do I do?

For productions that have earned tax credits on applications submitted before July 1, 2017, you can opt to transfer the credit to the Louisiana Department of Revenue, who will then issue you a check for 85% of the face value of the credits. In other words, for $1 worth of credits, the State will issue you a check for $0.85. For productions that have earned tax credits on applications submitted on or after July 1, 2017, you can opt to transfer the credit to the Louisiana Department of Revenue, who will then issue you a check for 90% of the face value of the credits. In other words, for $1 worth of credits, the State will issue you a check for $0.90. (*the ultimate net will be 88% because LDR will collect a 2% transfer fee)

 Must a certain percentage of crew be Louisiana residents?

No. However, Louisiana has a skilled and deep crew base and expenditures made on hiring Louisiana residents increases the potential tax credits that can be earned.

What if I have other questions that aren’t answered here?

Please direct additional inquiries concerning the Tax Credit program to Louisiana Entertainment who administers the program. You may find what your looking for here.