Film Tax incentives
The Louisiana Motion Picture Industry Development Tax Credit provides a 30% tax credit on qualified expenditures with no project or program caps (on qualified Louisiana expenses).
Payroll expenditures for Louisiana residents qualify for an additional 5% tax credit (35% effective total tax credit rate).
|Total Spend||30% Production Credit||5% labor Credit||Cash Equivalent|
Calculations based on monetizing tax credits at .85 on the dollar, selling to the State of Louisiana.
Qualifying Production Expenditures - Here's a detailed list of qualifying production expenditures - the following expenses are eligible to earn tax credits: preproduction, production and postproduction expenditures directly incurred in this state that are directly used in producing the production, whether the production company directly contracts or subcontracts such work, including without limitation the following:
a. set construction and operation;
b. wardrobes, make-up, accessories, and related services;
c. costs associated with photography and sound synchronization, lighting, and related services and materials;
d. editing and related services;
e. rental of facilities and equipment;
f. leasing of vehicles;
g. costs of food and lodging;
h. digital or tape editing, film processing, transfer of film to tape or digital format, sound mixing, special and visual effects (if services are performed in Louisiana);
i. total aggregate payroll (limited to the amount of total payroll expended in Louisiana and which is taxable to the recipient in Louisiana. A Louisiana tax return is required to be filed reflecting the amount of compensation paid while the recipient is located in Louisiana. If the recipient is not a Louisiana resident, then a non-resident income tax return should be filed);
j. music, if performed, composed or recorded by a Louisiana resident, or released or published by a Louisiana-domiciled and headquartered company;
k. airfare, if purchased through a Louisiana company;
l. insurance costs or bonding, if purchased through a Louisiana company;
m. payments to a loan-out or personal services corporation for the services of an out-of-state hire are allowed as long as the services are performed in Louisiana on a state certified production;
n. cost of the independent audit of the tax credits.
Louisiana Motion Picture Tax Credit Program:
In 2002, the Louisiana legislature enacted the Louisiana Motion Picture Tax Incentive Act (The Act) in order to induce production companies to shoot their film and video productions (i.e., movies, television shows, commercials, music videos, etc.) in Louisiana. The Act provides a tax credit incentive for qualified, Louisiana based productions.
- Investor Tax Credit – This program creates a transferable tax credit equal to 30% of the investment greater than $300,000 for all Louisiana based on qualified expenditures with no project or program caps (on qualified Louisiana expenses) for commercials shooting in Louisiana. These incentives can be used to offset production costs or used to make projects more financially viable to be filmed in Louisiana. Since most out-of-state production companies have no state income tax liability, they monetize their credits for cash.
- Labor Tax Credit – The Labor Tax Credit is a separate program and provides an additional 5% tax credit based on the total payroll of Louisiana residents employed in connection with the production. This credit encourages production companies to use local crews and labor as much as possible. We have many contacts with crews and support facilities to assist with productions.