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 B - Motion Picture Production Tax Credit Program-Qualified Entertainment Company Payroll Tax Credit Program
Section I-1637 - Certification
Universal Citation: LA Admin Code I-1637
Current through Register Vol. 50, No. 9, September 20, 2024
A. Initial Certification of State-Certified Productions
1. To obtain the approval of the department
for a "state-certified production" as required by
R.S.
47:6023(B)(5) and (6), the
sound recording production company that will produce the sound recording
production must submit a written request to the department for approval of the
production as a "state-certified musical recording infrastructure project" or
as a "state-certified production" and setting forth the following facts, when
applicable:
a. working title of the sound
recording production for which approval is requested;
b. name of the requesting production
company;
c. telephone number of
requesting production company;
d.
name and telephone number of the requesting production company's contact
person;
e. approximate beginning
and ending date of production in Louisiana;
f. Louisiana office address of requesting
production company (if available);
g. telephone number of requesting production
company's Louisiana office address (if available);
h. estimated total production-related costs
of the sound recording production for which approval is requested;
i. estimated total amount of
production-related costs to be expended in Louisiana in connection with the
sound recording production for which approval is requested;
j. estimated total payroll to be paid by the
requesting production company to Louisiana residents employed by the requesting
production company in connection with the production for which approval is
requested.;
k. facts sufficient to
determine each of the following:
i. that the
requesting production company is a sound recording production company as
defined by
R.S.
47:6023(B)(4);
l. for "state-certified
productions" the application shall also include:
i. the distribution plan;
ii. a preliminary budget including estimated
Louisiana payroll and estimated base investment;
iii. a description of the type of sound to be
recorded;
iv. a list of the
principal creative elements including performing artist(s) and
producer;
v. the name and address
of the recording studio or other location where the recording production will
take place;
vi. a statement that
the production will qualify as a state-certified production; and
vii. estimated start and completion
dates;
m. for
"state-certified sound recording infrastructure projects" the application shall
also include:
i. a detailed description of the
infrastructure project;
ii. a
preliminary budget;
iii. a
statement that the project meets the definition of a state-certified
infrastructure project; and
iv.
estimated start and completion dates;
v. a business plan for startup sound
recording infrastructure companies.
2. The department shall submit its initial
certification of a project as an "initial state-certified production" or an
"initial state-certified musical recording infrastructure project" to investors
and to the Secretary of the Department of Revenue, containing a unique
identifying number. The department shall issue their written approval of a
project as a "state-certified musical recording infrastructure project" or of a
sound recording production as a "state-certified production" within 90 business
days after receiving a request with respect to such production that complies
with Paragraph 1 of this Section. In the alternative, if the department
determines that a request for approval of a project as a "state-certified
musical recording infrastructure project" or of a sound recording production as
an "initial state-certified production" received from a production company is
not in compliance with Paragraph 1 of this Section, then within 45 business
days after receiving such request, the department shall request in writing from
the requesting production company any information necessary in their
determination for such request to comply with Paragraph 1 of this Section. Upon
receiving all of the requested additional information in writing from the
production company, and if the department determine that the request for
approval with respect to such project or production complies with Paragraph 1
of this Section, the department shall issue to the requesting production
company their written approval of the project as a "state-certified musical
recording infrastructure project" or of a sound recording production as a
"state-certified production."
3.
The approval of a project as an "initial state-certified musical recording
infrastructure project" or of a sound recording production as an "initial
state-certified production" issued by the department pursuant to the above
Paragraph 2 of this Section will include the following, as appropriate.
a. For initial state-certified musical
recording infrastructure projects:
" Based solely on our examination of the factual representations set forth in your request for state certification of ["Name of Project"] dated [Date of Request] attached hereto as Exhibit A, the Department of Economic Development does hereby certify that ["Name of the Project"] qualifies as of [Date] as a initial state-certified musical recording infrastructure project as such term is defined in Louisiana Revised Statutes 47:6023 B(6).
["Identifying Number"] is hereby assigned to ["Name of Project"] and such number shall constitute such project's identifying number as contemplated by R.S. 47: 6023 E(2)(c)."
b. For initial state-certified sound
recording productions:
" Based solely on our examination of the factual representations set forth in your request for state certification of ["Name of Production"] dated [Date of Request] attached hereto as Exhibit A, the undersigned does hereby certify that ["Name of the Production"] qualifies as of [Date] as a initial sound recording state-certified production as such term is defined in Louisiana Revised Statutes 47:6023 B(5).
["Identifying Number"] is hereby assigned to ["Name of Production"] and such number shall constitute such production's identifying number as contemplated by R.S. 47: 6023 E(2)(c)."
4. The initial certification shall be
effective for expenditures made no more than 12 months prior to the date of
application and shall be valid until the project is complete.
B. Final Certification of Sound Recording Investor Tax Credits
1.
Upon project completion, the applicant shall make a request to LED to proceed
to final certification by submitting to the department a cost report of
production expenditures to be formatted in accordance with instructions of the
department. The applicant shall make all records related to the cost report
available for inspection by the department and the CPA selected by the
department to prepare the expenditure verification report. After review and
investigation of the cost report, the CPA shall submit to the department an
expenditure verification report. The department shall review such expenditures
and shall issue a tax credit certification letter to the investors and the
Louisiana Department of Revenue indicating the amount of tax credits certified
for the state-certified production or state-certified infrastructure project.
a. Incorrect Reporting. If an applicant
submits a cost report required by the provisions of this Chapter and the report
made and filed contains material misstatements, including but not limited to
misrepresentation in or intentional omission from the cost report of events,
transactions, or other significant information there may be cause for an
additional audit.
b. Related Party
Transactions. If an audit contains related party transactions in excess of 20
percent of the base investment there may be cause for an additional
audit.
c. Reimbursement of Audit
Costs. The department may undertake additional audit at the applicant's
expense, to be performed by a state certified public accountant also certified
in financial forensics or also certified as a fraud examiner. Audit fees will
be assessed at the department's contracted fee, with a minimum of $2,000 and a
maximum of $15,000 fee per audit.
2. After receiving a written request from an
investor and after the meeting of all criteria, the department shall issue a
letter of certification to such investor signed by the secretary reflecting the
investor's name, the dollar amount of sound recording investor tax credits
earned by the investor pursuant to
R.S.
47:6023(C) through the date
of such request, the calendar year in which the sound recording investor tax
credits were earned by the investor, the state-certified sound recording
infrastructure project or the state-certified production with respect to which
the investor earned the sound recording investor tax credits, and the
identifying number assigned to such state-certified sound recording
infrastructure project or state-certified production.
3. The tax credits when issued and upon
receipt shall not be transferred to any third party and will be held valid only
to the party which was certified by the Department of Economic Development .
After certification, the Louisiana Department of Economic Development shall
submit the tax credit certification letter to the Department of Revenue on
behalf of the investor who earned the sound recording tax credits. The
Department of Revenue may require the investor to submit additional information
as may be necessary to administer the provisions of this Section. Upon receipt
of the tax credit certification letter and any necessary additional
information, the secretary of the Department of Revenue shall make payment to
the investor in the amount to which he is entitled from the current collections
of the taxes collected pursuant to Chapter 1 of Subtitle II of this Title, as
amended.
4. Once certification of a
project has been granted under the criteria established within this provision
and pursuant to
R.S.
47:6023, the granting of such credit will be
based upon a first come, first serve basis of the approved cost report or audit
and shall be set for a maximum aggregate amount not to exceed $2,160,000 during
any calendar year. For purposes of this Section the applicant will be
considered the investor.
5. If the
total amount of qualifying credits in any particular year exceeds the aggregate
amount of tax credits allowed for that year the excess credits will be treated
as having been certified for the first day of the subsequent year.
6. The failure of the department to issue a
letter of certification in accordance with this Subpart shall not:
a. void or otherwise affect, in any way, the
legality or validity of any allocation of sound recording investor tax
credits;
b. prohibit any Louisiana
taxpayer from claiming sound recording investor tax credits against its
Louisiana income tax liability if the sound recording investor tax credits are
otherwise allocated or claimed in accordance with
R.S.
47:6023(C) and this Subpart;
or
c. result in any recapture,
forfeiture or other disallowance of sound recording investor tax credits under
R.S.
47:6023(G) or
otherwise.
AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6023.
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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