|Incentive Type||Non-Transferable, Partially Refundable Tax Credit|
|Above the Line Residents||40-45% Restrictions apply, see Additional Information|
|Above the Line Nonresidents||25-30%Restrictions apply, see Additional Information|
|Below the Line Residents||40-45%|
|Below the Line Nonresidents||25-30%|
|Bonus||Out of Zone Bonus - State-certified productions that have their production office and at least sixty(60%) percent of principal
photography based and occurring outside of the New Orleans Metropolitan Statistical Area (NOLAMSA) may be eligible for an increased 5% credit of base investment.
In NOLA-MSA Zone: Orleans Parish, Jefferson Parish, Plaquemines Parish, St. Bernard Parish, St. Charles Parish, St. James Parish, and St. Tammany Parish.
Out-of-Zone: All other parishes including St. John the Baptist Parish.
|Bonus||VFX Bonus- If at least 50% of the VFX budget is expended for services performed in Louisiana by an approved Qualified Entertainment Company (QEC), or a minimum of $1 million in qualified VFX expenditures are made in Louisiana, an additional 5% credit may be allowed on the qualified VFX spend only.|
$300,000 minimum instate spend.
To get the full 40% on Louisiana resident payroll (residency form is required). Payments to artist's loan-out companies are ineligible for this credit.
Career Based Learning and Training Requirement For applications received on or after July 1, 2017, the state-certified production shall participate in a career-based learning and training program approved by LED.
|Loanout Registration Required||No|
|Loanout Withholding||Yes, 6%|
|Annual Funding Caps||$150,000,000|
Eligible expenditures are creditable for 12 months prior to the date of application and 24 months after Initial Certification.
Detailed preliminary budget (including all hires)
Detailed preliminary Louisiana budget
Detailed distribution plan
Script or Synopsis
Statement that the project meets the definition of a state-certified production
A notarized statement agreeing to pay all vendors
Disclosure of any anticipated related-party transactions
For applications for initial certification the fee for filing an application shall be equal to 0.5% of the amount of the incentives or exempted taxes, with a minimum of $500 and a maximum of
At the time of the application, the applicant shall submit a deposit of the production expenditure verification report fee; An advance deposit of $7500 for productions with budgets under $25M with a possible maximum fee is $15,000. An advance deposit of $15,0000 for productions over $25M with a possible maximum fee of $25,000.
Along with the audit a Project must also submit:
Full bible run(s)
Full payroll data
Louisiana Entertainment may require additional support and/or verification for certain expenditures.
After all supporting documentation is received and reviewed, Louisiana Entertainment and LED will issue a "Final Certification" letter approving the qualifying expenditures and certifying the tax credits.
Project Cap: State-certified productions for Feature(one off project) content may be granted up to $20 million in credits project. State-certified productions for scripted episodic content may be granted up to $25 million in credits per season/project. However, Any Project will not receive a credit that exceeds 40% of their overall in-state investment
Compensation Cap: The first $3 million of payroll payments made directly to an individual will qualify for the tax credit, includes Loan outs.
Additional Caps: Expenditures for Above-the-Line salaries are capped at 40% of total production expenditures in the state for the production. Above the line salaries that are related party transactions cannot exceed 12% of the in state spend.
Cap Allocation: $7.5 million shall be reserved for Qualified Entertainment
$7.5 million shall be reserved for Louisiana screenplay productions.
$15 million shall be reserved for independent film productions.
$120 million is unreserved and may be applied to any size production
While the issuance cap is $150M, the back end claim cap is actually $180M.
"Partially Refundable" The state of Louisiana can buy back motion picture investor tax credits for 90% (really 88% because of LED fee- For projects with applications submitted to LED on or after July 1, 2017, a fee of 2% of the transfer value shall be applicable.)
A 'slate' means up to three motion picture productions with a combined total of qualified expenditures that exceed $300,000 for activities occurring over a maximum of 24 months within the state.
Last updated: 09/28/2017
Production Incentive Disclaimer
The encapsulated production incentive information on this page is provided for general purposes only and should not be construed as tax advice. While we do our utmost to keep all information up to date, production incentives change often. The best source for incentive details is the film office itself. For more explanation or detail about the production incentive described here, please contact our resident production incentives expert at [email protected].