Louisiana Administrative Code
Title 61 - REVENUE AND TAXATION
Part I - Taxes Collected and Administered by the Secretary of Revenue
Chapter 69 - Musical and Theatrical Production Income Tax Credit Program
Section I-6993 - Certification Procedures
Universal Citation: LA Admin Code I-6993
Current through Register Vol. 50, No. 9, September 20, 2024
A. Application and Expenditure Verification Report Fees
1. An application for a state-certified
production or a state-certified infrastructure project shall be submitted to
the department, including:
a. all information
required by
R.S.
47:6034(E)(2)(a);
b. an application fee of 0.5 percent of the
estimated total tax credits, with a minimum fee of $500, and a maximum fee of
$15,000; and
c. the applicant shall
provide additional information upon request.
2. Each application shall identify only one
production and only one contact person for such production or
project.
3. 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. For projects in excess of $100,000, the
fees shall be as follows:
a. at the time of
application, the applicant shall submit an advance deposit of $5,000;
b. prior to final certification of any tax
credits, the applicant shall be assessed the department's actual cost for the
CPA's expenditure report. The maximum fee shall be $15,000.
4. An application is not deemed
complete until all information requested and required fees are received by LED.
Required fees include both an application fee and an expenditure verification
deposit fee.
B. Qualification
1. The department shall
determine whether a production qualifies, by meeting all requirements of
R.S.
47:6034 and these regulations, and taking the
following factors into consideration:
a. the
contribution of the production to establishing the state as a leader in the
live performance industry;
b. the
impact of the production on the employment of Louisiana residents;
c. the impact of the production on the
overall economy of the state;
d. in
the case of productions, the potential for students to gain work experience in
an arts related position;
e.
whether the application has been submitted prior to the first performance, to
allow sufficient time for the state of Louisiana to receive promotional
opportunities including but not limited to, an opportunity for an approved LED
logo to be included in promotional materials.
C. Initial Certification
1. Upon finding the production qualifies, the
department shall issue an initial certification letter which shall include:
a. classification as a state-certified
production;
b. a unique identifying
number;
c. the total base
investment to be expended; and
d.
the persons to whom tax credits are to be allocated and the estimated amount of
tax credits allocated to each.
2. Brand. As a condition for receiving tax
credits, state certified productions may be required to display the state brand
or logo. Any such requirement will be detailed in the initial certification
letter.
3. Duration of Effect
a. The applicant shall countersign the
initial certification letter, acknowledging the conditions therein stated, and
return an 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.
c. For productions, initial certification
shall be effective for a period of 12 months prior to and 12 months after the
date of initial certification.
i. Productions
returning to the state after Broadway performances shall be eligible for
recertification, provided that the production returns to the state within 24
months of the date of original certification.
D. Final Certification and Audit Requirements
1. After review and upon a
determination of qualification and initial certification, an applicant may
obtain final certification as follows.
a. A
cost report shall be submitted by the applicant, certified by an independent
certified public accountant and complying with the minimum standards as
required by
R.S.
47:6034.
b. The cost report may be subject to
additional audit at the applicant's expense. The department shall select the
auditor and determine the audit standards.
i.
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.
ii. Related Party Transactions. If an audit
contains related party transactions in excess of 20 percent of the total
expenditures reported in the submitted audit there may be cause for an
additional audit.
iii.
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.
c. Additional information may be requested in
order to make a determination of eligibility.
d. The department shall review the cost
report and supporting information, and following verification of qualifying
expenditures, shall issue a final tax credit certification letter.
e. Multiple requests for final certification
may be submitted.
i. Each submission must be
accompanied by an audited cost report indicating expenditures.
ii. Two submissions shall be certified at no
additional fee by the department.
iii. Additional charges may apply for three
or more certification requests.
E. Appeal Process
1. In the event that an application for
certification is denied, the applicant may appeal as follows.
a. An applicant may appeal within 30 days
from receipt of a denial. A rebuttable presumption of receipt will occur from
the sending of the denial by electronic mail to an address provided by the
applicant or by a return receipt evidencing delivery by U.S. Postal Service or
private carrier.
b. The appeal is
made by delivery of a written objection with supporting documentation to the
secretary.
c. The secretary shall
review the objection and supporting documentation and provide the applicant
with a written response within 30 business days. This written response shall be
the final agency determination.
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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