HLS 15RS-1204 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 535
BY REPRESENTATIVE TALBOT
TAX CREDITS: Provides relative to expenses that are ineligible for motion picture investor
tax credits
1 AN ACT
2To amend and reenact R.S. 47:6007(B)(10), relative to income tax credits; to provide with
3 respect to the motion picture investor tax credit; to exclude certain costs from the
4 definition of production expenditures; to provide for an effective date; and to provide
5 for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:6007(B)(10) is hereby amended and reenacted to read as follows:
8 ยง6007. Motion picture investor tax credit
9 * * *
10 B. Definitions. For the purposes of this Section:
11 * * *
12 (10) "Production expenditures" means preproduction, production, and
13 postproduction expenditures in this state directly relating to a state-certified
14 production, including without limitation the following: set construction and
15 operation; wardrobes, makeup, accessories, and related services; costs associated
16 with photography and sound synchronization, lighting, and related services and
17 materials; editing and related services; rental of facilities and equipment; leasing of
18 vehicles; costs of food and lodging; digital or tape editing, film processing, transfer
19 of film to tape or digital format, sound mixing, special and visual effects; and
20 payroll. This term shall not include expenditures for marketing and distribution,;
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1204 ORIGINAL
HB NO. 535
1 non-production related overhead including finance fees, airfare, interest, and
2 insurance,; amounts reimbursed by the state or any other governmental entity,; costs
3 related to the transfer of tax credits,; amounts that are paid to persons or entities as
4 a result of their participation in profits from the exploitation of the production,; the
5 application fee,; or state or local taxes.
6 * * *
7 Section 2. This Act shall become effective on July 1, 2015; if vetoed by the governor
8and subsequently approved by the legislature, this Act shall become effective on July 1,
92015, or on the day following such approval by the legislature, whichever is later.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 535 Original 2015 Regular Session Talbot
Abstract: Provides relative to expenses that are ineligible for motion picture investor tax
credits
Present law provides for an income tax credit for La. taxpayers for investment in state-
certified productions earned at the time expenditures are made by a motion picture
production company in a state-certified production. The amount of the credit shall be equal
to 30% of the base investment made by the investor if the total base investment is more than
$300,000. Additionally provides for a credit equal to 5% of the base investment expended
on payroll for La. residents employed in connection with a state-certified production.
However, this credit does not apply to the payroll of any one person that exceeds $1 million.
Present law provides for the inclusion of production expenditures in the calculation of the
motion picture investor tax credit. Present law excludes non-production related overhead
expenditures from the definition of production expenditures.
Proposed law revises present law to include finance fees, airfare, interest payments, and
insurance as excluded non-production related overhead expenditures for the purposes of
defining production expenditures.
Effective July 1, 2015.
(Amends R.S. 47:6007(B)(10))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.