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For applications for initial certification or requests for final certification received on or after January 1, 2016, Louisiana Entertainment shall directly engage and assign a CPA to prepare a production expenditure verification report on an applicant’s cost report on production expenditure. The applicant will be assessed Louisiana Entertainment’s actual cost for the production expenditure verification report fee and shall make all records related to the tax credit application available to Louisiana Entertainment and the CPA.
Incentives
Production Incentives Database
Louisiana LA Screenplay Production
| Incentive Type | Non-Transferable, Partially Refundable Tax Credit |
| Spend | 25-40% |
| Above the Line Residents | 40-55% Restrictions apply, see Additional Information |
| Above the Line Nonresidents | 25-40%Restrictions apply, see Additional Information |
| Below the Line Residents | 40-55% |
| Below the Line Nonresidents | 25-40% |
| Bonus | Out of Zone Bonus - State-certified productions that have their production office and at least sixty 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. |
| Project Criteria |
Local Louisiana indigenous production only: If the minimum instate spend is at least $50,000 but less than $300,000 a 30% tax credit is allowed on qualified expenditures, provided specific requirements are met. For 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 |
| Project Caps | 20000000 |
| Minimum Spend | $50,000 |
| Sunset Date | 07/01/2025 |
Audit Requirements
Getting Started
Submit an on-line application and include:
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
A deposit should be remitted to Louisiana Entertainment for the verification report. The applicant will be assessed the department's actual cost for the production expenditure verification report fee. The maximum fee for the report shall be $15,000 for verification of a cost report reflecting qualified production expenditures between $300,000 and $25 million, and the maximum fee shall be $25,000 for verification of a cost report reflecting qualified production expenditures in excess of $25 million.
At the time of the application, the applicant shall submit a deposit of the production expenditure verification report fee of $7,500 for a production with qualified expenditures projected to be between $300,000 and $25 million, and a deposit of $15,000 for those projected to be in excess of $25 million.
Once the application is complete, the project is evaluated for eligibility, and if Louisiana Entertainment determines that the project meets eligibility requirements in accordance with State law and the program rules and regulations, then an Initial Certification letter indicating that the project is now considered a "state-certified production" will be issued. The Initial Certification letter states that the project is eligible to receive potential tax credits and does NOT certify any expenditures for tax credits. Additional detailed guidelines are provided within the initial certification letter. Either an initial certification or denial will be issued by the department within 60-90 business days of receipt of a complete application.
The applicant signs the Initial Certification letter and returns it to Louisiana Entertainment.
Initial certification is effective 12 month prior(application) and twenty-four months after the date of 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
A deposit should be remitted to Louisiana Entertainment for the verification report. The applicant will be assessed the department's actual cost for the production expenditure verification report fee. The maximum fee for the report shall be $15,000 for verification of a cost report reflecting qualified production expenditures between $300,000 and $25 million, and the maximum fee shall be $25,000 for verification of a cost report reflecting qualified production expenditures in excess of $25 million.
At the time of the application, the applicant shall submit a deposit of the production expenditure verification report fee of $7,500 for a production with qualified expenditures projected to be between $300,000 and $25 million, and a deposit of $15,000 for those projected to be in excess of $25 million.
Once the application is complete, the project is evaluated for eligibility, and if Louisiana Entertainment determines that the project meets eligibility requirements in accordance with State law and the program rules and regulations, then an Initial Certification letter indicating that the project is now considered a "state-certified production" will be issued. The Initial Certification letter states that the project is eligible to receive potential tax credits and does NOT certify any expenditures for tax credits. Additional detailed guidelines are provided within the initial certification letter. Either an initial certification or denial will be issued by the department within 60-90 business days of receipt of a complete application.
The applicant signs the Initial Certification letter and returns it to Louisiana Entertainment.
Initial certification is effective 12 month prior(application) and twenty-four months after the date of initial certification.
Screen Credit Required
Yes
Company Registration
No
Sales Use Tax Relief
No
Hotel Occupancy Tax Relief
No
Local Vendors Qualify
Yes
Outside Vendors Qualify
No
Claiming Incentive
Once the audit is complete, a final certification letter (credits) or denial will be issued by the department within 120 days of receipt of a complete package.
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.
"Partially Refundable" The state of Louisiana can buy back motion picture investor tax credits for 90%
For projects with applications submitted to LED on or after July 1, 2017, a fee of 2% of the
transfer value shall be applicable.
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.
"Partially Refundable" The state of Louisiana can buy back motion picture investor tax credits for 90%
For projects with applications submitted to LED on or after July 1, 2017, a fee of 2% of the
transfer value shall be applicable.
Additional Information
Bonus
10% of base investment for a production based on a screenplay which meets certain Louisiana ownership criteria on certain expenditures equal to or greater than $50K but no greater than $5M
*For the full 40% on Louisiana resident payroll (residency form is required). Payments to artist's loan-out companies are ineligible for this credit.
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 services 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
Companies.
$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%
For projects with applications submitted to LED on or after July 1, 2017, a fee of 2% of the
transfer value shall be applicable.
10% of base investment for a production based on a screenplay which meets certain Louisiana ownership criteria on certain expenditures equal to or greater than $50K but no greater than $5M
*For the full 40% on Louisiana resident payroll (residency form is required). Payments to artist's loan-out companies are ineligible for this credit.
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 services 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
Companies.
$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%
For projects with applications submitted to LED on or after July 1, 2017, a fee of 2% of the
transfer value shall be applicable.
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 clientservices@mediaservices.com.
Also Applies to:
| Animation |  |
| Commercials | |
| Documentaries | |
| Game Shows | |
| Interactive | |
| Industrials | |
| Music Videos | |
| News |  |
| Sports | |
| Reality TV | |
| Web Series | |
| = yes |
= no |
| = Contact Film Office for more Info | |
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 clientservices@mediaservices.com.