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-6537 - Certification
Universal Citation: LA Admin Code I-6537
Current through Register Vol. 50, No. 3, March 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 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. After review, and upon a determination of
qualification, the department shall submit its initial certification of a
project as an "initial state-certified production" to investors and to the
Secretary of the Department of Revenue, containing a unique identifying
number.
3.
a. The applicant shall countersign the
initial certification letter, acknowledging the conditions therein stated, and
return a countersigned original to the department within 30 business days of
receipt.
b. If a countersigned
original is not returned to the department within the allotted time frame, it
shall be nullified unless reissued or confirmed by the department.
4.
a. For projects with applications received by
LED prior to 2020 rule promulgation, 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. For projects with applications received by
LED on or after 2020 rule promulgation, the initial certification shall be
effective for qualifying expenditures made within a period 12 months prior to
the date of application and 12 months after the date of initial certification,
as outlined in the initial certification letter. Expenditures outside of this
approved initial certification period shall not qualify for tax
credits.
B. Final Certification of Sound Recording Investor Tax Credits
1. For projects with applications received by
LED prior to 2020 rule promulgation, upon project completion, or for projects
with applications received by LED on or after 2020 rule promulgation, no later
than six months after the expiration of the initial certification period, 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, after which time
all claims to tax credits shall be deemed waived. 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.
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 applicants 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 departments 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 production with
respect to which the investor earned the sound recording investor tax credits,
and the identifying number assigned to such state-certified
production.
3. ...
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.
a. However, 50
percent of the aggregate amount of credits certified each year shall be
reserved for QMC's.
b. No more than
$100,000 in tax credits may be granted per project, per calendar
year.
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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