$300,000 in Louisiana expenditures, $50,000 for local Louisiana screenplay productions.
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.
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%.
Services will qualify if performed in Louisiana. Goods will qualify if purchased through a source in Louisiana.
A source is a physical nexus with at least one full-time employee and posted business hours.
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.
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)
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.
Please direct additional inquiries concerning the Tax Credit program to Louisiana Entertainment who administers the program. You may find what your looking for here.