JEDCO

Business & Tax Incentives

Entertainment Industry Tax Credits

Louisiana offers tax incentive programs designed to encourage motion picture, sound recording, musical and theatrical, and digital interactive media production in our state.

Motion Picture

The Facts

Louisiana’s Motion Picture Production Tax Credit program provides motion picture productions up to a 40% tax credit on total qualified in-state production expenditures, including resident and non-resident labor.

  • Provides up to a 40% tax credit (25% base credit; 10% increase for Louisiana screenplay productions, 5% increase if outside of the New Orleans Metro Statistical Area).
  • $50,000 minimum in-state expenditure requirement for Louisiana screenplay productions.
  • $300,000 minimum in-state expenditure requirement on all other eligible productions.
  • The maximum amount of credits that can be issued is $150 million per fiscal year.
  • The maximum amount of credits that can be claimed is $180 million per fiscal year.
  • Tax credits may be used to offset personal or corporate income tax liability in Louisiana.
  • Tax credits may be transferred back to the State for 90% of face value (requires a 2% transfer fee, which results in an 88% net).

Eligibility

The program is open to all motion picture production companies headquartered and domiciled in Louisiana producing nationally or internationally distributed motion pictures with total Louisiana expenditures exceeding $300,000, or $50,000 for Louisiana screenplay productions.

Base Investment Credit Rates (applicable to entire eligible spend):

  • 25% base credit
  • 10% increase for Louisiana screenplay productions (if production is based on a screenplay created by a Louisiana resident, with expenditures greater than $50,000, but no greater than $5 million)
  • 5% increase for out of NOLA zone filming (if production’s office base and at least 60% of principal photography occurs outside of the New Orleans Metropolitan Statistical Area)
  • Base investment credit rate increases may be combined as follows;
    • 30% total – 25% base plus 5% out of zone filming; or
    • 35% total – 25% base plus 10% LA screenplay increase; or
    • 40% total – 25% base plus 5% out of zone filming, and 10% LA screenplay

**Total Credits cannot exceed 40% of the base investment

FOR MORE INFORMATION, PLEASE CONTACT:

Stephen Hamner, Division Director, Film & Television
Email: stephen.hamner@la.gov
225.342.4838

Amanda Hafford, Assistant Director, Film & Television
Email: amanda.hafford@la.gov
225.342.5403

For more information, visit louisianaentertainment.gov

Sound Recording Investor Tax Credit

The Sound Recording Program, statutorily known as Sound Recording Investor Tax Credit, provides an 18% tax credit for sound recording projects made in the State of Louisiana. Louisiana also offers some of the world’s finest talent and great recording studios to complement the attractive financial benefits of recording in state. Sound recording investor tax credits are issued as rebates. The Sound Recording Investor Program provides:

  • A project based production credit of 18% for eligible production expenditures. Program is subject to a cap of $2.16 million per year.
  • Projects are subject to a $100,000 cap, per year.

The program incentivizes sound recording, defined as a recording of music, poetry or spoken-word performance made in Louisiana and produced in Louisiana in whole or in part. A $25,000 minimum in expenditures is required, with a $10,000 minimum expenditure requirement for Louisiana residents.

Qualifying sound recordings include:

  • Recording, tracking and overdubbing of music and vocal performances
  • Recording of film scores
  • Recording of spoken word performance
  • Recording of live musical performances

Eligible expenditures:

  • Studio rental fees and associated fixed costs
  • Artist and musician salaries directly related to a certified recording project
  • Producer fees directly related to a certified recording project
  • Mixing and mastering of a recording made in whole or in part in the State of Louisiana
  • Instrument and equipment rental
  • Hotel, airfare (when booked through a Louisiana Travel Agent), and catering expenditures directly related to a certified recording project

Non-eligible expenditures:

  • Mixing, mastering or any post-production expenditures for projects not originally recorded in Louisiana are considered non qualifying
  • Producer fees in excess of 20% of the entire project budget are considered non-qualifying
  • Studio rental fees may be limited if they are found to be in excess of fair market value
  • Expenditures associated with related party transactions may be limited as detailed in cost report guidelines
  • All costs associated with duplication, packaging, marketing and distribution are non-qualifying

The program incentivizes sound recording, defined as a recording of music, poetry or spoken-word performance made in Louisiana and produced in Louisiana in whole or in part. A $25,000 minimum in expenditures is required, with a $10,000 minimum expenditure requirement for Louisiana residents.

Qualifying sound recordings include:

  • Recording, tracking and overdubbing of music and vocal performances
  • Recording of film scores
  • Recording of spoken word performance
  • Recording of live musical performances

Eligible expenditures:

  • Studio rental fees and associated fixed costs
  • Artist and musician salaries directly related to a certified recording project
  • Producer fees directly related to a certified recording project
  • Mixing and mastering of a recording made in whole or in part in the State of Louisiana
  • Instrument and equipment rental
  • Hotel, airfare (when booked through a Louisiana Travel Agent), and catering expenditures directly related to a certified recording project

Non-eligible expenditures:

  • Mixing, mastering or any post-production expenditures for projects not originally recorded in Louisiana are considered non qualifying
  • Producer fees in excess of 20% of the entire project budget are considered non-qualifying
  • Studio rental fees may be limited if they are found to be in excess of fair market value
  • Expenditures associated with related party transactions may be limited as detailed in cost report guidelines
  • All costs associated with duplication, packaging, marketing and distribution are non-qualifying

For more information, please contact:
Louisiana Economic Development
Lacey McRight-Chataignier, Director
Phone: (225) 342-5553
Email: lacey.chataignier@la.gov
Website: www.louisianaeconomicdevelopment.com 

Digital Interactive Media and Software Tax Credit

The Facts

Louisiana’s Digital Interactive Media and Software Program, statutorily known as Digital Interactive Media and Software Tax Credit, the strongest of its kind in the nation, is helping innovative digital media and software development companies of all sizes gain a competitive edge.

  • Provides a 25% tax credit on qualified payroll for in-state labor and 18% for qualified production expenditures.
  • No cap and no minimum requirement.
  • Tax credit can be applied to state income tax liability and the state will refund any overages

OR

  • Applicants can opt for 85% of the value earned as a rebate any time during the year.

The incentive is open to all companies producing digital interactive media products or platforms in Louisiana. Certain exclusions apply, such as static internet websites or software primarily designed for internal use, which are non-qualifying. Only work physically performed in Louisiana and only direct development equipment purchased through Louisiana businesses qualifies for the incentive.

Certified applicants may elect to receive a one-time rebate of credits equal to 85% of their face value in lieu of tax credits. Application and other filing fees apply.

For more information, please contact:
Louisiana Economic Development
Eric Burton, Director of Digital Interactive Media & Software Development
Phone (225) 342-5340
Email: eric.burton@la.gov

Musical Job Creation Program

The Music Job Creation Program provides a tax credit on annual W2 wages to music industry related companies (known as a Qualified Music Company or “QMC”) that create well-paid jobs for Louisiana residents.

  • The program provides a 10% credit for each new job whose QMC payroll is equal to or greater than $35,000 per year, up to $66,000 per year; and
  • Provides a 15% credit for each new job whose QMC payroll is equal to or greater than $66,000 per year, but no greater than $200,000 per year

Program Statutes & Rules:La. R.S. 47:6023, better known as the Louisiana Sound Recording Production Program, also provides a QMC payroll tax credit on annual W2 wages for approved music industry companies, and this incentive is commonly referred to here as the Music Job Creation Program. All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register.

Eligibility

The Secretary of the Department of Economic Development may consider program applicants meeting the following criteria:

  • Business must be engaged directly or indirectly in the production, distribution and promotion of music.  (For example, the business may be a music publisher, sound recording studio, artist management or other music industry related business)
  • Entity must be authorized to do business in the state of Louisiana and permanently locate or expand existing operations in Louisiana

Job Requirements:

  • Create a minimum of three new direct jobs that meet or exceed a salary of $35,000 per year per person
  • These jobs must be full time, (full-time employees working an average of 30 hours or greater per week)
  • Filled by residents of the state at the approved QMC’s location in Louisiana
  • Can NOT have existed previously on the QMC’s payroll in Louisiana, nor previously on the payroll of the QMC’s parent entity, subsidiary, or affiliate in Louisiana, or previously on the payroll of any business whose physical location and employees are substantially the same as those of the QMC in Louisiana

Please fill out the application and send to OEID according to the instructions.

For more information, please contact:
Louisiana Economic Development
Lacey Chataignier, Division Director, Live Performance & Music Industry Development
Phone: (225) 342-5403
Email: lacey.chataignier@la.gov

Entertainment Job Creation Program

The Entertainment Job Creation Program provides a tax credit on annual W2 wages to approved entertainment companies (known as a Qualified Entertainment Company or “QEC”) that create well-paid jobs for Louisiana residents.

  • The program provides a 15% credit for each new job whose QEC payroll is equal to or greater than $45,000 per year, up to $66,000 per year
  • Provides a 20% credit for each new job whose QEC payroll is equal to or greater than $66,000 per year, but no greater than $200,000 per year

Program Statutes & Rules:

*La. R.S. 47:6007, better known as the Louisiana Motion Picture Production Program, also provides a QEC payroll tax credit on annual W2 wages for approved entertainment companies and this incentive is commonly referred to here as the Entertainment Job Creation Program.

Eligibility

The Secretary of the Department of Economic Development may consider program applicants meeting the following criteria:

  • Business must be engaged in the development or distribution of audio, visual, or both audio-visual entertainment products for public consumption, directly or indirectly.
  • Entity must be authorized to do business in the state of Louisiana

The following business types are ineligible:

  • Telecommunications

Job Requirements:

  • Create a minimum of five new direct jobs that meet or exceed a salary of $45,000 per year per person
  • These jobs must be full time, (full-time employees working an average of 30 hours or greater per week)
  • Filled by residents of the state at the approved QEC’s physical location in Louisiana
  • Can NOT have existed previously on the QEC’s payroll in Louisiana, nor previously on the payroll of the QEC’s parent entity, subsidiary, or affiliate in Louisiana, or previously on the payroll of any business whose physical location and employees are substantially the same as those of the QEC in Louisiana

Please fill out the application and send to OEID according to the instructions.

For more information, please contact:

Louisiana Economic Development
Lacey Chataignier, Division Director, Live Performance & Music Industry Development
Phone: (225) 342-5403
Email: lacey.chataignier@la.gov

Live Performance Production Program

Whether you’re launching a national concert tour or staging a new theatrical production, the Live Performance Production Program, statutorily known as the Musical and Theatrical Production Income Tax Credit, will help you hit your mark. Louisiana offers a unique tax incentive for musical and theatrical productions.

  • Provides a 7% tax credit for certified Louisiana expenditures between $100,000 and $300,000.
  • Provides a 14% tax credit for certified Louisiana expenditures between $300,000 and $1,000,000.
  • Provides an 18% tax credit for certified Louisiana expenditures over $1,000,000.
  • Provides an additional 7% tax credit for payroll expenditures to Louisiana residents.
  • Program is subject to a $10 million cap per year (with 50% or $5 million being reserved for not-for-profit organizations). Projects are subject to a $1 million cap, per year
  • The tax credit is refundable or transferable on a one-time basis.

Eligibility

Louisiana’s musical and theatrical production income tax credit program is open to concert, theatrical and other live productions that originate or debut in the State of Louisiana. There is a $100,000 minimum in-state expenditure requirement.

Qualifying productions include:

  • Pre-Broadway engagement or remounts
  • Tour or resident production remounts
  • Pre-Broadway tryouts
  • Resident or regional productions
  • National touring companies producing their first public performance in Louisiana
  • Concert tours producing their first public performance in Louisiana

Eligible production expenditures:

  • Salaries directly related to the development of in-state certified productions (up to the first $1 million per person)
  • Physical production costs directly related to an in-state certified production
  • Artist compensation directly related to performance days in Louisiana (up to the first $1 million per person)
  • Creative team compensation directly related to work performed in Louisiana
  • Local and touring crew compensation directly related to work performed in Louisiana (up to the first $1 million per person)
  • Hotel and airfare expenditures directly related to an in-state certified production
  • Venue rental and associated fixed costs

For more information, please contact:
Louisiana Economic Development
Lacey McRight-Chataignier
Director
Live Performance and Music Industry Development
Phone: (225) 342-5553
Email: lacey.chataignier@la.gov
Website: www.louisianaeconomicdevelopment.com

Jefferson Parish Film Industry Incentive Program

  • Productions that have their principal Louisiana production office or use a soundstage/alternative filming facility located in Jefferson Parish may be eligible to receive a 3% cash rebate on local expenses (includes qualified payroll for residents, lodging, lease or rental expenses, post production costs, etc.)
  • In order to be eligible for benefits, productions must spend at least $150,000 in qualified local expenses
  • Incentive cap of $100,000 for new productions
  • $15,000 cap increase for subsequent productions begun within 12 months of completion of a project that previously received the incentive
  • $10,000 cap increase if both production office and soundstage are in Jefferson Parish
  • Productions must submit an audit of spending in Jefferson Parish performed by a Louisiana certified public accountant
  • Payment of incentives subject to available funding

For more information, please contact Jefferson Parish Citizen’s Affairs Department:

Barry Sprague, Program Administrator
Phone: (504) 442-9130
Email: bsprague@jeffparish.net
filmjeffersonla.com