Section I-1695 - Additional Program Procedures-State-Certified Musical or Theatrical Production-Receiving Initial Certification prior to July 1, 2015 (Louisiana Code of Regulations)

§ I-1695. Additional Program Procedures-State-Certified Musical or Theatrical Production-Receiving Initial Certification prior to July 1, 2015

A. Production Expenses Made from Investment in State-Certified Musical or Theatrical Productions

1. Qualification of Tax Credits

a. The department shall determine which production expenditures qualify under these regulations and the terms of R.S. 47:6034.

b. Examples of qualifying expenditures are set forth in R.S. 47:6034(B)(6)(a).

2. Duration of Tax Credits

a. Tax credits may be granted under R.S. 47:6034 until such statute is amended, modified or repealed.

3. Amount of and Limitations upon Tax Credits

a. Tax credits shall be available on a first come, first served basis, based upon date of final certification and qualification of expenditures. If the total amount of credits applied for in any particular year exceeds the aggregate amount of tax credits allowed for that year, the excess shall be treated as having been applied for on the first day of the subsequent year.

b. For State Certified Musical or Theatrical Productions

i. If the total base investment is more than $100,000 dollars, but less than $300,000 dollars, a tax credit of 10 percent applies.

ii. If the total base investment is more than $300,000 dollars, but less than $1,000,000 dollars, a tax credit of 20 percent applies.

iii. If the total base investment is more than $1,000,000 dollars, a tax credit of 25 percent applies.

c. For Limited State-Certified Musical or Theatrical Productions

i. For applications received on or before January 1, 2013, a tax credit may be granted for base investments made by non-profit community theaters for each of the 2009 and 2010 calendar years.

ii. If the total base investment is more than $25,000 but less than $300,000, a tax credit of 10 percent of the base investment applies.

iii. Applicants shall be limited to a maximum of two applications per year, for the 2009 and 2010 calendar years.

iv. The total amount of tax credits eligible to be issued shall not exceed $250,000 for each of the calendar years 2009 and 2010.

4. Earning of Tax Credits

a. Credits are earned when qualified expenditures receive final certification.

b. A state certified production may submit multiple requests for final certification.

c. Tax credits associated with a state-certified musical or theatrical production shall never exceed the total base investment in that production and transportation expenditures.

B. Transportation Costs for Performance-Related Property

1. The department shall determine which transportation expenditures qualify under these regulations and the terms of R.S. 47:6034.

2. Transportation expenditures shall mean:

a. type of services covered shall include, but not be limited to:

i. packaging;

ii. crating; and

iii. transportation;

b. items covered, shall include but not be limited to:

i. sets;

ii. costumes; or

iii. other tangible property whether such items are manufactured in or out of the state;

c. transportation with a Louisiana nexus, with transportation either:

i. to the state, for use in a state certified production; or

ii. from the state, after use in a state certified production.

iii. provided that services are purchased through a company which has a significant business presence in Louisiana;

iv. significant business presence in the state shall mean a transportation company that:

(a). is registered to do business in the state;

(b). has one office in the state; and

(c). employs at least one full-time employee in the state.

3. An additional tax credit shall apply for qualified transportation expenditures that receive final certification, as follows:

a. 100 percent for qualified expenditures incurred until December 31, 2010;

b. 50 percent for qualified expenditures incurred between January 1, 2011and December 31, 2011;

c. 25 percent for qualified expenditures incurred between January 1, 2012 and December 31, 2012;

d. no credits are available for transportation expenditures incurred after December 31, 2012.

C. Employment of State Residents

1. An additional 10 percent tax credit shall be available for payroll expenditures of state residents.

2. No more than $1,000,000 paid to a single person shall be eligible for payroll tax credit.

3. This payroll tax credit may not be combined with the student tax credit component of R.S. 47:6034.

D. Employment of College and Vocational-Technical Students

1. An additional 0.10 percent tax credit shall be available for production expenditures of students in connection with a state-certified musical or theatrical production, including but not limited to, the following positions:

a. actor;

b. writer;

c. producer;

d. stage hand;

e. director or technical positions relating to lighting, sound, actual stage work; and

f. positions indirectly serving the production in accounting, law, management and marketing.

2. This tax credit may not be combined with the state resident tax credit component of R.S. 47:6034.

(Promulgated by the Department of Economic Development, Office of Business Development, Office of Entertainment Industry Development, LR 35:2175 (October 2009), repromulgated LR 36:2239 (October 2010), amended LR 39:1017 (April 2013), Amended LR 4241 (January 2016).)

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6034(E).

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