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 D - Musical and Theatrical Production Income Tax Credit Program
Section I-1695 - Additional Program Procedures-State-Certified Musical or Theatrical Production-Receiving Initial Certification prior to July 1, 2015
Universal Citation: LA Admin Code I-1695
Current through Register Vol. 50, No. 9, September 20, 2024
A. Production Expenses Made from Investment in State-Certified Musical or Theatrical Productions
1. Qualification of Tax Credits
a. The department shall determine which
production expenditures qualify under these regulations and the terms of
R.S.
47:6034.
b. Examples of qualifying expenditures are
set forth in
R.S.
47:6034(B)(6)(a).
2. Duration of Tax Credits
a. Tax credits may be granted under
R.S.
47:6034 until such statute is amended,
modified or repealed.
3.
Amount of and Limitations upon Tax Credits
a.
Tax credits shall be available on a first come, first served basis, based upon
date of final certification and qualification of expenditures. If the total
amount of credits applied for in any particular year exceeds the aggregate
amount of tax credits allowed for that year, the excess shall be treated as
having been applied for on the first day of the subsequent year.
b. For State Certified Musical or Theatrical
Productions
i. If the total base investment
is more than $100,000 dollars, but less than $300,000 dollars, a tax credit of
10 percent applies.
ii. If the
total base investment is more than $300,000 dollars, but less than $1,000,000
dollars, a tax credit of 20 percent applies.
iii. If the total base investment is more
than $1,000,000 dollars, a tax credit of 25 percent applies.
c. For Limited State-Certified
Musical or Theatrical Productions
i. For
applications received on or before January 1, 2013, a tax credit may be granted
for base investments made by non-profit community theaters for each of the 2009
and 2010 calendar years.
ii. If the
total base investment is more than $25,000 but less than $300,000, a tax credit
of 10 percent of the base investment applies.
iii. Applicants shall be limited to a maximum
of two applications per year, for the 2009 and 2010 calendar years.
iv. The total amount of tax credits eligible
to be issued shall not exceed $250,000 for each of the calendar years 2009 and
2010.
4.
Earning of Tax Credits
a. Credits are earned
when qualified expenditures receive final certification.
b. A state certified production may submit
multiple requests for final certification.
c. Tax credits associated with a
state-certified musical or theatrical production shall never exceed the total
base investment in that production and transportation expenditures.
B. Transportation Costs for Performance-Related Property
1. The
department shall determine which transportation expenditures qualify under
these regulations and the terms of
R.S.
47:6034.
2. Transportation expenditures shall mean:
a. type of services covered shall include,
but not be limited to:
i.
packaging;
ii. crating;
and
iii. transportation;
b. items covered, shall include
but not be limited to:
i. sets;
ii. costumes; or
iii. other tangible property whether such
items are manufactured in or out of the state;
c. transportation with a Louisiana nexus,
with transportation either:
i. to the state,
for use in a state certified production; or
ii. from the state, after use in a state
certified production.
iii. provided
that services are purchased through a company which has a significant business
presence in Louisiana;
iv.
significant business presence in the state shall mean a transportation company
that:
(a). is registered to do business in the
state;
(b). has one office in the
state; and
(c). employs at least
one full-time employee in the state.
3. An additional tax credit shall apply for
qualified transportation expenditures that receive final certification, as
follows:
a. 100 percent for qualified
expenditures incurred until December 31, 2010;
b. 50 percent for qualified expenditures
incurred between January 1, 2011and December 31, 2011;
c. 25 percent for qualified expenditures
incurred between January 1, 2012 and December 31, 2012;
d. no credits are available for
transportation expenditures incurred after December 31, 2012.
C. Employment of State Residents
1. An additional 10 percent tax
credit shall be available for payroll expenditures of state
residents.
2. No more than
$1,000,000 paid to a single person shall be eligible for payroll tax
credit.
3. This payroll tax credit
may not be combined with the student tax credit component of
R.S.
47:6034.
D. Employment of College and Vocational-Technical Students
1. An
additional 0.10 percent tax credit shall be available for production
expenditures of students in connection with a state-certified musical or
theatrical production, including but not limited to, the following positions:
a. actor;
b. writer;
c. producer;
d. stage hand;
e. director or technical positions relating
to lighting, sound, actual stage work; and
f. positions indirectly serving the
production in accounting, law, management and marketing.
2. This tax credit may not be combined with
the state resident tax credit component of
R.S.
47:6034.
AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6034(E).
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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