Louisiana Administrative Code
Title 61 - REVENUE AND TAXATION
Part I - Taxes Collected and Administered by the Secretary of Revenue
Chapter 65 - Louisiana Sound Recording Investor Tax Credit Program
Section I-6535 - Rules of Application
Universal Citation: LA Admin Code I-6535
Current through Register Vol. 50, No. 9, September 20, 2024
A. The sound recording investor tax credit authorized by R.S. 47:6023(C) may be earned and claimed as follows.
1. There is authorized a
credit against the state income tax for investments made in state-certified
productions, which credit will be earned by investors at the time expenditures
are certified by the Louisiana Department of Economic Development according to
the total base investment certified for the sound recording production company
per calendar year. No credit shall be allowed for any expenditures for which a
credit was granted under
R.S.
47:6007.
2. Applicants meeting the following criteria
shall be eligible to receive tax credits as follows:
a. for state-certified productions initially
certified prior to July 1, 2015:
i. 25
percent tax credit, if the total base investment is more than $15,000, or if a
resident of this state, if the total base investment is more than
$5,000;
b. for
state-certified productions initially certified on and after July 1, 2015:
i. 18 percent tax credit, if the total base
investment is more than $15,000, or if a resident of this state, if the total
base investment is more than $5,000.
c. for applications by qualified music
companies ("QMC's") for state certified productions, received on or after June
18,2019:
i. to the extent that the base
investment by a QMC is expended on a sound recording production of a resident
copyright, the investor shall be allowed an additional ten percent increase in
the base investment rate.
3. An application for initial certification
of a project shall be submitted to the Louisiana Department of Economic
Development prior to the granting of the credit, and the granting of the
credits under this Rule shall be on a first-come, first-served basis based on
when the proper cost reports as defined here under RS 47:6023, are submitted to
DED for certification of tax credits, which shall be determined by the date of
a signed receipt via certified or registered mail, courier, hand or other
delivery, or the date on a proof of transmission via facsimile and/or by the
DED stamped and staff initialed date. The Secretary of the Department of
Economic development shall determine annually the annual aggregate maximum. If
the total amount of credits earned for any particular year exceeds the
aggregate amount of tax credits allowed for that year, the excess will be
treated as having been earned on the first day of the subsequent year.
a. Applications for a series of productions
shall provide the titles, budgets and a brief description for each production
in the series. The series of productions, as a combined group, must at least
achieve, and may exceed the minimum investment. If one single project may, on
its own, exceed the $15,000 minimum threshold, it must make separate
application.
4.
Individuals or entities may earn sound recording investor tax credits pursuant
to R.S.
47:6023(C).
5. Any individual or entity shall be allowed
to claim the sound recording investor tax credit authorized by
R.S.
47:6023:
a.
whether or not any such individual is a Louisiana resident; and
b. whether or not any such entity is
domiciled in Louisiana, organized under Louisiana law, or headquartered in
Louisiana.
6. Any
applicant applying for the credit shall be required to reimburse the department
for any audits required in relation to granting the credit.
7. Application Fee. Applicants with project
expenditures greater than $15,000 shall submit a $250 fee with each
application. LED shall waive the application fee for applicants with project
expenditures up to $15,000.
8.
Expenditure Verification Report Fee. The department shall directly engage and
assign a CPA to prepare an expenditure verification report on an applicant's
cost report of production or project expenditures. Applicants shall submit an
advance deposit at the time of application, and shall later be assessed the
department's actual cost based upon an hourly rate as provided in R.S.
36.104.1, in the amounts set forth below:
a.
for applicants with project expenditures of at least $10,000 but less than
$25,000, an advance deposit of $750, with a maximum fee of $1,500;
b. for applicants with project expenditures
of at least $25,000, an advance deposit of $1,500, with a maximum fee of
$3,000;
c. for applicants with
project expenditures of at least $50,000, but less than $100,000, an advance
deposit of $2,500, with a maximum fee of $5,000;
d. for applicants with project expenditures
of more than $100,000, an advance deposit of $3,750, with a maximum fee of
$7,500;
e. any unused balance shall
be refunded to the applicant within 60 days following receipt of CPA's final
invoice and payment of all CPA costs.
AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6023 and R.S. 36:104.
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