Louisiana Administrative Code
Title 61 - REVENUE AND TAXATION
Part I - Taxes Collected and Administered by the Secretary of Revenue
Chapter 16 - Louisiana Entertainment Industry Tax Credit Programs
Subchapter A - Motion Picture Production Tax Credit Program
Section I-1611 - Additional Program Provisions - Infrastructure
Universal Citation: LA Admin Code I-1611
Current through Register Vol. 50, No. 9, September 20, 2024
A. Tax credits may be granted only for infrastructure projects directly related to the acquisition and construction of a film, video, television, or video production or postproduction facility and shall not apply to any infrastructure project such as a hotel or lodging facility, golf course, or retail shopping facility or other facility which the department and the division deem unrelated to such purposes.
1. If an infrastructure project may be used
for other purposes unrelated to the production or postproduction activities,
tax credits may be granted for that portion of the project that is deemed by
the department and the division to be necessary to support or secure production
or postproduction activities.
2. In
the case of immovable assets deemed related, an applicant must provide
assurances that:
a. such assets will
exclusively support the initially certified film infrastructure project;
and
b. that the applicant will not
divert the use of the assets to purposes that do not promote or provide for the
productions within the state of Louisiana.
3. In the case of movable assets deemed
related, an applicant must provide assurances that:
a. the moveable assets shall remain in
Louisiana, for as long as specified in any agreements pursuant to
§
1611. A.4
below;
b. be used in the production
of motion pictures or other visual media productions within the state of
Louisiana; and
c. used for not less
than 80 percent of the asset's useful life.
4. Assurances may be secured by appropriate
agreements, including, but not limited to the following terms and conditions:
a. a requirement of approval prior to sale of
such assets;
b. a requirement for a
minimum number of years before such assets may be transferred to a different
owner;
c. limitations on
transferability of the tax credits for current or future holders;
d. a reserve fund that may be re-captured by
the state; and/or
e. a structured
release of tax credits.
5. Any conditions to meet the requirements of
this Subsection shall be explicitly stated in the initial certification issued
for the project.
a. In the event an applicant
fails to meet the conditions, as specified in the certification letter, any
such acts, omissions or failures shall constitute a default, and the office
shall retain all rights to modify the terms and conditions of the
certification, and to reclaim disbursed credits in an amount commensurate with
the scope of the unmet performance objectives and the foregone benefits to the
state. Reclamation shall not begin unless the office has determined, after an
analysis of the benefits of the project to the state and the unmet performance
objectives, that the state has not satisfactorily or adequately recouped its
costs through the benefits provided by the project.
B. For infrastructure applications received prior to August 1, 2007:
1. the
applicant shall have 24 months from the date of approval of the rules or
January 1, 2008, whichever is earlier, in which to qualify for the 40 percent
tax credits earned on expenditures;
2. a minimum of 20 percent or $10,000,000 of
the total base investment (as provided for in the initial certification) that
is unique to film production infrastructure shall be expended before any
infrastructure tax credits can be earned.
3. payment of tax credits earned may be
structured over the course of two or more tax years, and may be made after the
year expenditures are made, as provided for in the initial
certification.
C. For infrastructure applications received after August 1, 2007 and before January 1, 2009:
1. the tax credit shall be 40 percent of
the base investment expended in this state on projects, provided that:
a. the total base investment expended in this
state, exceeds $300,000;
b. the
total tax credit allowed shall not exceed $25,000,000;
2. if all or a portion of an infrastructure
project is a facility which may be used for other purposes unrelated to
production or postproduction activities, then no tax credits shall be earned on
such multiple-use facilities until the production or postproduction facility is
complete;
3. construction of the
infrastructure project shall begin within six months of the preliminary
certification;
4. credits may not
be earned until 25 percent of the total base investment, provided for in the
preliminary certification of an infrastructure project, has been certified as
expended;
5. no tax credit shall be
allowed for expenditures made for any infrastructure project after December 31,
2008, unless 50 percent of the total base investment provided for in the
initial certification of the project has been expended prior to that date. The
expenditures may be finally certified at a later date;
a. transactions qualifying toward he 50
percent expenditure requirement include, but are not limited to, an arm's
length transaction in which the obligation is secured by the subject of the
transaction and the maturity date for such obligation occurs after December 31,
2008, if such transaction was executed on or before December 31, 2008. However,
such transactions shall not qualify to earn tax credits, or otherwise be deemed
to be expenditures, until actual payments are made and the transaction meets
the definition of expenditure provided in
§1605. B above;
6. expenditures shall be certified
by the department, office and division and credits are not transferable until
such certification;
7. for purposes
of allowing tax credits against state income tax liability and transferability
of the tax credits, the tax credits shall be deemed earned at the time
expenditures are made, provided that all requirements of this Subsection have
been met and after the tax credits have been certified;
8. the department, office and division may
require the tax credits to be taken and/or transferred in the period in which
the credit is earned or may structure the tax credit in the initial
certification of the project to provide that only a portion of the tax credit
be taken over the course of two or more tax years;
9. the credit shall be allowed against the
income tax for the taxable period in which the credit is earned or for the
taxable period in which initial certification authorizes the credit to be
taken.
AUTHORITY NOTE: Promulgated in accordance with R.S. 47:1125.1.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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