SLS 11RS-606 REENGROSSED
Page 1 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2011
SENATE BILL NO. 264
BY SENATOR CHAISSON
TAX/TAXATION. Provides for motion picture investor tax credits. (gov sig)
AN ACT1
To amend and reenact R.S. 47:6007(B)(7) and (C)(2) and (4) and to enact R.S.2
47:6007(B)(15) and (C)(1)(c)(iii), relative to tax credits; to provide for granting3
motion picture investor tax credits; to provide for definitions, allowing the credits,4
and transferability; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:6007(B)(7) and (C)(2) and (4) are hereby amended and reenacted7
and R.S. 47:6007(B)(15) and (C)(1)(c)(iii) are hereby enacted to read as follows: 8
ยง6007. Motion picture investor tax credit9
* * *10
B. Definitions. For the purposes of this Section:11
* * *12
(7) "Office" means the Governor's Office of Film and Television13
Development until August 15, 2006; thereafter, the term "office" means the office14
of entertainment industry development in the Department of Economic Development15
provided for in R.S. 51:938.1.16
* * *17 SB NO. 264
SLS 11RS-606 REENGROSSED
Page 2 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(15) "Film production servicing and support facilities" shall mean a film,1
video, television, and/or digital production and/or postproduction facilities, and2
movable and immovable property and equipment directly related thereto, or3
any other assets which support and are a necessary component of such film4
production servicing and support facilities, all as determined and approved by5
the office. The term "film production servicing and support facilities" shall not6
include movie theaters or other commercial exhibition facilities.7
C. Investor tax credit; specific productions and projects.8
(1) There is hereby authorized a tax credit against state income tax for9
Louisiana taxpayers for investment in state-certified productions. The tax credit shall10
be earned by investors at the time expenditures are made by a motion picture11
production company in a state-certified production. However, credits cannot be12
applied against a tax or transferred until the expenditures are certified by the office13
and the secretary. For state-certified productions, expenditures shall be certified no14
more than twice during the duration of a state-certified production unless the motion15
picture production company agrees to reimburse the office for the costs of any16
additional certifications. The tax credit shall be calculated as a percentage of the total17
base investment dollars certified per project.18
* * *19
(c) For state-certified productions approved by the office and the secretary20
on or after July 1, 2009:21
* * *22
(iii)(AA) In lieu of the additional five percent credit for payroll allowed23
in Item (ii) of this Subparagraph, an approved investor shall be allowed an24
additional tax credit of five percent of the total base investment made in the25
state by the approved investor in state-certified productions if the following26
conditions are met:27
(I) The aggregate total base investment expended in the state within any28
fiscal year commencing on or after July 1, 2011, on state-certified productions29 SB NO. 264
SLS 11RS-606 REENGROSSED
Page 3 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
is equal to or greater than fifty million dollars.1
(II) The total base investment expended on each such state-certified2
production is fifty percent or more of the total production expenditures, both3
in state and out of state, for each such production as determined by the office.4
(BB) However, the tax credit provided for in this Subparagraph shall not5
apply to that portion of the base investment which are production expenditures6
of those employed in connection with the state-certified productions who are not7
Louisiana residents.8
(CC) As used in this Item, the term "approved investor" means an9
investor which, together with any other persons or entities which, directly or10
indirectly, wholly own such investor or are wholly owned by such investor as11
determined by the office, has demonstrated a long term commitment to the film12
industry in the state of Louisiana by expending, on or after July 1, 2011, five13
million dollars or more in the construction of film production servicing and14
support facilities in Louisiana approved by the office.15
* * *16
(2) The credit shall be allowed against the income tax for the taxable period17
tax year in which the credit is earned or for the taxable period tax year in which18
initial certification authorizes the credit to be taken. If the tax credit allowed pursuant19
to this Section exceeds the amount of such taxes due for such tax period, then any20
unused credit may be carried forward as a credit against subsequent tax liability for21
a period not to exceed ten years.22
* * *23
(4) Transferability of the credit. Any motion picture investor tax credits not24
previously claimed by any taxpayer against its income tax may be transferred or sold25
to another Louisiana taxpayer or to the office, subject to the following conditions:26
* * *27
Section 2. This Act shall become effective upon signature by the governor or, if not28
signed by the governor, upon expiration of the time for bills to become law without signature29 SB NO. 264
SLS 11RS-606 REENGROSSED
Page 4 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If1
vetoed by the governor and subsequently approved by the legislature, this Act shall become2
effective on the day following such approval.3
The original instrument was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Linda Nugent.
DIGEST
Chaisson (SB 264)
Proposed law provides in lieu of the additional five percent credit for payroll contained in
present law, an approved investor may take an additional tax credit of five percent of the
total base investment in the state if the following conditions are met:
1. The aggregate total base investment expended in the state within any fiscal year
beginning on or after July 1, 2011, on state-certified productions is at least $50
million.
2. The total base investment expended on each production is at least 50% of the total
production expenditures, both in state and out of state, for each production.
Proposed law restricts the proposed tax credit to the portion of the base investment which
are production expenditures of employees who are Louisiana residents.
Proposed law defines approved investor as one which has expended on or after July 1, 2011,
at least $5 million in the construction of film production servicing and support facilities in
Louisiana.
Proposed law specifies the administrator of motion picture investor tax credits as the office
of entertainment industry development in the Department of Economic Development.
Proposed law allows credits to be taken against income tax for the tax year in which the
credit is earned or for the tax year in which initial certification authorizes the credit to be
taken.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6007(B)(7) and (C)(2) and (4); adds R.S. 47:6007(B)(15) and
(C)(1)(c)(iii))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill.
1. Authorizes an approved investor an additional five percent of the total base
investment in lieu of the additional five percent credit for payroll, if:
a. The aggregate total base investment in the state in a fiscal year,
beginning on or after July 2, 2011, is at least $50 million, and
b The total base investment on each production is at least 50% of total
production expenditures, in state and out of state, on each production. SB NO. 264
SLS 11RS-606 REENGROSSED
Page 5 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
2. Restricts the proposed tax credit to the portion of the base investment which
are production expenditures of employees who are Louisiana residents.
3. Defines "approved investor" and "film production servicing and support
facilities in Louisiana".