The buzz is on about Louisiana tax credits! The
Louisiana Motion Picture Incentive Act (“Act”) has been
described as one of the most aggressive production tax
incentive plans of the 21st century. Initially enacted
in 2002 and amended and extended thereafter, this
cutting-edge legislation is a valuable tool to producers
in reducing their production budget or in increasing
returns to investors or financiers of the production.
Major studios, networks and independent
producers are all taking advantage of the state
production incentives. But tax credit brokers,
production service companies and middlemen buy tax
credits low from producers and sell high to taxpayers,
keeping the difference for themselves.
Don't be fooled by tax credit brokers
claiming their services are "free", because they keep a
lucrative spread for themselves.
How can you obtain the highest rates for
your tax credits? Call Topaz instead of tax credit
brokers. Topaz can introduce you to qualified companies
that negotiate tax credit pre-sales at substantially
better rates than tax credit brokers. Be sure you don't
leave money on the table!
The tax incentives of the
Act apply to productions with national distribution, and a
qualifying minimum budget of at least $300,000, including:
· Feature films,
· Independent movies,
· Television series,
· Back-door pilots,
· MFTVMs (made-for-television-movies),
· Reality programs;
· National commercials,
· Music videos,
· and other similar projects.
Only a few types of
productions are excluded, such as live sports events, news
programs and commercials or other productions that do not
have qualified distribution, including but not limited to,
multi-media distribution plans.
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For qualified and certified
productions, tax credits can include the following, which
are discounted at sale to taxpayers. Contact Topaz
Productions for information relating to a particular film or
multi-picture slate. Some of the incentives offered, without
guarantees, for informational purposes are:
A. Motion Picture Production
Tax Credits:
1. Investor Tax Credits,
for productions certified:
· Between
Jan. 1, 2004 and Dec. 31, 2005, 10-15% tax credits on
actual expenditures, with minimum thresholds.
· After
Jan. 1, 2006, 25% tax credits on Louisiana expenditures.
2. Employment/Payroll Tax
Credits for productions certified:
· Between
Jan. 1, 2004 and Dec. 31, 2005, 10-20% tax credits on
Louisiana payroll and benefits, with minimum thresholds
(excludes salary portion of $1 million or more to any
individual).
· After
Jan. 1, 2006, 10% on Louisiana payroll and benefits
(excludes salary portion of $1 million or more).
B. Music Tax Credit of up
to 20%, subject to threshold and cap limitations, on:
1.
Music performed, composed or recorded by a
Louisiana musician.
2.
Music released or published by a Louisiana
company domiciled and headquartered in Louisiana.
C. Game Development Tax
Credit of up to 20% to qualified video game developers
working in Louisiana.
D. Infrastructure Tax
Credit of up to 40% on qualified projects in Louisiana,
subject to threshold and cap limitations.
E. “Broadway South” Theatrical
Production & Infrastructure Tax Credits of up to
25%, subject to threshold and cap limitations, on:
· Qualified
live musical or theatrical performances, infrastructure,
and certain transportation costs related to qualified
productions.
· Employment
(10%) of local employees (excludes salaries of $1
million or more).
· Additional
employment (1/10%) of college and vocational school
students.
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