ENROLLED
Page 1 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2013
HOUSE BILL NO. 483
BY REPRESENTATIVE NANCY LANDRY
AN ACT1
To amend and reenact R.S. 47:6034(A), (B)(4), (8), (9), (10), and (11), (C)(1)(a)(ii)(aa) and2
(bb) and (3), (E)(1)(e) and (F), to enact R.S. 47:6034(B)(12) and (J), and to repeal3
R.S. 47:6034(C)(1)(b), (e), and (f), relative to income tax credits for state-certified4
musical and theatrical productions and state-certified infrastructure projects; to5
extend the time period for granting certain tax credits; to provide with respect to a6
tax credit for state-certified higher education musical or theatrical infrastructure7
projects; to provide relative to certain definitions; to provide for certain requirements8
and limitations; to provide with respect to the application for such tax credits and9
certification of productions and infrastructure projects; to provide for the10
disallowance of credits; to provide for the recovery of credits; and to provide for11
related matters.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 47:6034(A), (B)(4), (8), (9), (10), and (11), (C)(1)(a)(ii)(aa) and (bb)14
and (3), (E)(1)(e) and (F) are hereby amended and reenacted and R.S. 47:6034(B)(12) and15
(J) are hereby enacted to read as follows:16
ยง6034. Musical and theatrical production income tax credit17
A. Purpose. It is the intention of the legislature in creating these five18
different types of tax credits: a credit for qualified production expenditures made19
from investments in a state-certified musical or theatrical production; a credit for the20
construction, repair, or renovation of facilities related to such productions and21
performances; a credit for qualified transportation costs for performance-related22
property; a credit for the payroll of Louisiana residents employed in connection with23
a state-certified musical or theatrical production; and a credit for employing college,24 ENROLLEDHB NO. 483
Page 2 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
university, and vocational-technical students employed in connection with a state-1
certified musical or theatrical production, to establish and promote Louisiana as one2
of the primary places in the United States in which live performances, from creation3
to presentation, are present and thriving. The live performance industry will enhance4
economic development because it fits well with the state's reputation as a tourist5
destination, will offer numerous and varied employment opportunities, and in6
conjunction with the available federal and state incentives, will be an attraction for7
new and relocating businesses and will provide for the reinventing of countless8
abandoned properties as either performance or rehearsal spaces. The live9
performance industry will also spur educational development: Louisiana colleges,10
universities, and vocational-technical schools will be able to offer talented11
undergraduate and graduate students from this state, other states, and around the12
world a real-world opportunity to participate in degree programs across the state that13
work on the various productions in accounting, law, management, and marketing and14
to fill arts-related positions such as actors, writers, producers, stagehands, and15
directors, as well as technicians working on all aspects of the production such as16
lighting, sound, and actual stage production and operations.17
B. Definitions. For the purposes of this Section:18
* * *19
(4) "Limited state-certified musical or theatrical production" means a20
musical or theatrical production or a series of productions occurring in Louisiana by21
a nonprofit community theater that held a public performance before an audience22
within this state during the 2008 calendar year which has been certified, verified, and23
approved in accordance with the provisions of this Section. "Infrastructure24
expenditures" means expenditures directly related to the state-certified infrastructure25
project or state-certified higher education infrastructure projects including land and26
land acquisition costs, construction costs, design fees, furniture, fixtures, and27
equipment purchased subject to a sale agreement or capital lease. Infrastructure28
expenditures shall not include indirect costs such as general administrative costs,29
insurance, or any costs related to the transfer or allocation of tax credits. The30 ENROLLEDHB NO. 483
Page 3 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Department of Economic Development may determine whether expenditures1
submitted as production-related costs of capital costs related to an infrastructure2
facility represent legitimate expenditures for the actual costs of related goods or3
services that have economic substance and a business purpose related to the certified4
production or facility, or such costs constitute constructive dividends, self-dealing,5
inflated prices or similar transactions entered into for the purpose of inflating the6
amount of tax credits earned rather than for the benefit of the production or facility.7
* * *8
(8) "Related party transaction" means a transaction between parties deemed9
to be related by common ownership or control under generally accepted auditing10
principles. Related party transaction expenditures may be subject to limitations as11
provided for by rules and regulations promulgated by the department.12
(9)(a) "Resident" or "resident of Louisiana" means a natural person and, for13
the purpose of determining eligibility for the tax incentives provided by this Section,14
a person who qualifies for any of the following reasons:15
(i) The person is domiciled in the state of Louisiana.16
(ii) The person maintains a permanent place of abode within the state and17
spends in the aggregate more than six months of each year within the state.18
(iii) The person pays taxes to the state on the amount of money paid to such19
person for which a credit is sought pursuant to this Section.20
(b) A company owned or controlled by such a person and which lends the21
services of such a person for a state-certified musical or theatrical production shall22
also be deemed a resident if such company is organized or authorized to do business23
in the state and such company pays taxes to the state on the amount of money paid24
to such company for such services of such person.25
(9)(10) "State-certified higher education musical or theatrical infrastructure26
project" means a new proscenium or black-box theatre infrastructure project situated27
on a parcel of land located on the campus of a higher education institution in this28
state, that is owned by a higher education campus institution or support foundation29
related to the campus primarily operated to benefit and support campus students and30 ENROLLEDHB NO. 483
Page 4 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
the higher education facility. The primary purpose of the proposed infrastructure1
facility must be to host live performances, and the facility must have a minimum2
fixed seating capacity of five hundred. Expenditures attributable to areas other than3
where live performances will take place may comprise no more than twenty-five4
percent of total qualifying expenditures. 5
(11)(a) "State-certified musical or theatrical facility infrastructure project"6
or "state-certified infrastructure project", for any project which receives initial7
certification before July 1, 2013, means a capital infrastructure project in the state8
directly related to the production or performance of musical or theatrical productions9
as defined in this Section, and movable and immovable property and equipment10
related thereto, or any other facility that supports and is a necessary component of11
such facility, and any expenditures in the state related to the construction, repair, or12
renovation of such project, which that are certified, verified, and approved as13
provided for in this Section.14
(b) "State-certified musical or theatrical infrastructure project" or "state15
certified infrastructure project", for any project which receives initial certification16
on or after July 1, 2013, means a new or rehabilitated proscenium or black-box17
theatre infrastructure project located in the state and any expenditures in the state18
directly related to the construction, repair, or renovation of such project, which are19
certified, verified, and approved as provided for in this Section. The primary20
purpose of the proposed facility must be to host live performances and the facility21
must have a minimum capacity of five hundred. Expenditures attributable to areas22
other than where live performances will take place may comprise no more than23
twenty-five percent of total qualifying expenditures.24
(10)(a)(12)(a) "State-certified musical or theatrical production" means a25
musical or theatrical production performed in this state including but not limited to26
concerts, musical tours, ballet, dance, comedy revue, or live variety entertainment,27
or a series of productions occurring over the course of a twelve-month period, and28
the recording or filming of such production, that originate, are developed, or have29
their initial public performance before an audience within Louisiana, or that have30 ENROLLEDHB NO. 483
Page 5 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
their United States debut within Louisiana, and the production expenditures,1
expenditures for the payroll of residents, transportation expenditures, and2
expenditures for employing college and vocational-technical students related to such3
production or productions, that are certified, verified, and approved as provided for4
in this Section. Non-qualifying projects include but are not limited to non-touring5
music and cultural festivals, industry seminars, and trade shows, and any production6
activity taking place outside the state.7
(b) A "state-certified musical or theatrical production" that shall be eligible8
for recertification and the credit provided for in this Section shall include a9
previously certified musical or theatrical production that received a credit pursuant10
to this Section and is otherwise eligible pursuant to this Section, that returns for11
performances within the state after being performed on Broadway.12
(11)(a) "Transportation expenditures" means expenditures for the packaging,13
crating, and transportation both to the state for use in a state-certified musical or14
theatrical production of sets, costumes, or other tangible property constructed or15
manufactured out of state, and/or from the state after use in a state-certified musical16
or theatrical production of sets, costumes, or other tangible property constructed or17
manufactured in this state. Such term shall include the packaging, crating, and18
transporting of property and equipment used for special and visual effects, sound,19
lighting, and staging, costumes, wardrobes, make-up and related accessories and20
materials, as well as any other performance or production-related property and21
equipment; provided that transportation services are purchased through a company22
which has a significant business presence in the state.23
(b) "Transportation expenditures" shall not include any costs to transport24
property and equipment to be used only for filming and not in a state-certified25
production, any indirect costs, any expenditures that are later reimbursed by a third26
party, or any amounts that are paid to persons or entities as a result of their27
participation in profits from the exploitation of the production.28
C. Income tax credits for state-certified productions and state-certified29
musical or theatrical facility infrastructure projects:30 ENROLLEDHB NO. 483
Page 6 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(1) There is hereby authorized the following types of credits against the state1
income tax:2
(a)3
* * *4
(ii)(aa) Until For state-certified infrastructure projects that receive initial5
certification on or before January 1, 2014, a base investment credit may be granted6
earned for certified, verified, and approved expenditures made in the state on or7
before January 1, 2015, for the construction, repair, or renovation of a state-certified8
musical or theatrical facility infrastructure project or for investments made by a9
company or a financier in such infrastructure project which are, in turn, expended for10
such construction, repair, or renovation, not to exceed ten million dollars per state-11
certified infrastructure project, under conditions provided for in this Item. No more12
than sixty million dollars in tax credits under this Section shall be granted for13
infrastructure projects per year.14
(bb) If all or a portion of an infrastructure project is a facility which may be15
used for other purposes not directly related to the production or performance of16
musical or theatrical production activities, then the project shall be approved only if17
a determination is made that the multiple-use facility will support and will be18
necessary to secure musical or theatrical production activities for the musical or19
theatrical production or performance facility and the applicant provides sufficient20
contractual assurances that: For state-certified higher education musical or theatrical21
infrastructure projects that receive initial certification on or before January 1, 2018,22
a base investment credit may be earned for expenditures made in the state on or23
before January 1, 2022, for the construction, repair, or renovation of a new state-24
certified higher education musical or theatrical facility infrastructure project, or for25
investments made by a company or a financier in such infrastructure project that are,26
in turn, expended for such construction, repair, or renovation. No more than ten27
million dollars in tax credits per project or sixty million dollars total in tax credits28
shall be granted for state-certified higher education musical or theatrical29
infrastructure projects. Twenty-five percent of the total base investment provided30 ENROLLEDHB NO. 483
Page 7 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
for in the initial certification letter of a state-certified higher education musical or1
theatrical infrastructure project must be expended on or before January 1, 2020, in2
order for the project to earn credits for the remaining estimated base investment3
provided for in the initial certification letter, as expenditures are made in the state on4
or before January 1, 2022. No credits shall be certified until the state-certified higher5
education musical or theatrical infrastructure project is complete. The initial6
certification letter shall be effective for qualified expenditures made no more than7
six months prior to the date of application. State-certified higher education musical8
or theatrical infrastructure projects shall not be subject to the provisions of Subitem9
(cc) of this Item nor shall such projects be subject to the provisions of Subsection H10
of this Section.11
(I) The facility will be used for the production or performance of musical or12
theatrical production activities, or as a support and component thereof, for the useful13
life of the facility. 14
(II) No tax credits shall be earned on such multiple-use facilities until the15
facility directly used in musical or theatrical productions or performances is16
complete. 17
* * *18
(3) Tax credits associated with a state-certified musical or theatrical19
production or a state-certified musical or theatrical facility infrastructure project shall20
never exceed the total base investment in that production or infrastructure project21
and transportation expenditures.22
* * *23
E. Certification and administration:24
(1)25
* * *26
(e) Prior to the final certification of a production or infrastructure project, the27
applicant shall submit to the Department of Economic Development a report an audit28
of the final amount of expenditures qualifying for credits pursuant to this Section,29
which report the Department of Economic Development may require to be prepared30 ENROLLEDHB NO. 483
Page 8 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
by an independent certified public accountant. The Department of Economic1
Development shall review the report audit and shall issue a final tax credit2
certification letter, certifying the applicant and indicating the type and amount of tax3
credits for which the applicant or other companies or financiers are eligible pursuant4
to this Section.5
* * *6
F.(1) Recapture of credits. If the Department of Economic Development, or7
the Department of Revenue find that funds for which a taxpayer received credits8
according to this Section were not expended for expenditures qualifying for a credit9
as provided in this Section, then the taxpayer's state income tax for such taxable10
period shall be increased by such amount necessary for the recapture of credit11
provided by this Section.12
(2)(a) Recovery of credits by Department of Revenue. Credits granted to a13
taxpayer, but later disallowed, may be recovered by the secretary of the Department14
of Revenue through any collection remedy authorized by R.S. 47:1561 and initiated15
within three years from December thirty-first of the year in which the credit was16
taken.17
(b) The only interest that may be assessed and collected on recovered credits18
is interest at a rate three percentage points above the rate provided in R.S.19
9:3500(B)(1), which shall be computed from the original date of the return on which20
the credit was taken.21
(3) The provisions of this Subsection are in addition to and shall not limit the22
authority of the secretary of the Department of Revenue to assess or to collect under23
any other provision of law. Disallowance of credits by the Department of Economic24
Development. Tax credits shall be subject to disallowance in whole or in part, if the25
Department of Economic Development finds that a taxpayer has obtained a tax credit26
in violation of the provisions of this Section, including but not limited to fraud or27
misrepresentation, as further provided by rule.28
* * *29 ENROLLEDHB NO. 483
Page 9 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
J. Recovery of credits by the Department of Revenue:1
(1) Credits previously granted to a taxpayer but later disallowed by the2
Department of Economic Development may be recovered by the secretary of the3
Department of Revenue through any collection remedy authorized by R.S. 47:15614
and initiated within three years from December thirty-first of the year in which the5
credit was taken.6
(2) The only interest that may be assessed and collected on recovered credits7
is interest at a rate three percentage points above the rate provided for in R.S.8
9:3500(B)(1), which shall be computed from the original date of the return on which9
the credit was taken.10
(3) The provisions of this Subsection are in addition to and shall not limit the11
authority of the secretary of the Department of Revenue to assess or to collect under12
any other provision of law.13
* * *14
Section 2. R.S. 47:6034(C)(1)(b), (e), and (f) are hereby repealed in their entirety.15
Section 3. This Act shall become effective July 1, 2013.16
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: