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 678 Engrossed 2015 Regular Session Stokes
Abstract: Establishes requirements for inclusion of La. promotional content or activity for
productions eligible for the motion picture investor tax credit and the digital interactive
media and software tax credit.
Motion Picture Investor Tax Credit
Present law establishes a tax credit for investors in state-certified motion picture productions filmed
in La. The credit is equal to 30% of the "base amount" of "production related expenditures", as such
terms are defined by present law.
Proposed law retains present law and requires that a production use a La. promotional graphic or
employ approved alternative marketing opportunities in order to receive the 30% tax credit.
Specifically, if a state-certified production does not include a La. promotional graphic or an
alternative marketing opportunity which has been approved by the office of entertainment industry
development, Dept. of Economic Development (office) for that specific production , the tax credit
shall be reduced from 30% to 25% of the base investment.
Proposed law adds the following definitions for the required promotional content and activity:
(1)"Alternative marketing opportunity" means an alternative marketing mechanism which has
been approved by the Dept. of Economic Development (DED) as an alternative to a La.
promotional graphic for purposes of a production.
(2)"Louisiana promotional graphic" means a graphical brand or logo for promotion of the state,
which has been approved by DED for a production consisting of either of the following:
(a)A graphic that promotes La. in the end credits before the below-the-line crew crawl
for the life of the production and which includes a link to La. on the production's
website and online promotions.
(b)An embedded graphic that promotes La. during each broadcast worldwide for the life
of the production and which includes a link to La. on the production's website and
online promotions.
Proposed law requires annual reporting by the DED regarding the specific use and comparative value
of the alternative marketing opportunities it has approved for productions in the most recently ended calendar year. The report is to be provided on or before Feb. 1
st
to each member of the House
Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs.
Digital Interactive Media and Software Tax Credit
Present law establishes a tax credit for investors in state-certified digital interactive media and
software productions created in La. The credit is equal to 25% of the "base amount" of "production
expenses", as such terms are defined by present law.
Proposed law retains present law and requires that a production use a La. promotional graphic or
employ approved alternative marketing opportunity in order to receive the 25% tax credit.
Specifically, if a state-certified production does not include a La. promotional graphic or an
alternative marketing opportunity, the tax credit shall be reduced from 25% to 20% of the base
investment.
Proposed law adds the following definitions for the required promotional content and activity:
(1)"Alternative marketing opportunity" means an alternative marketing mechanism which has
been approved by DED as an alternative to a La. promotional graphic for purposes of a
production.
(2)"Louisiana promotional graphic" means a graphical brand or logo for promotion of the state,
which has been approved by DED for purposes of a production, consisting of either of an
embedded graphic that promotes La. for the life of the production and which includes a link
to La. on the production's website and online promotions.
Proposed law requires annual reporting by the DED regarding the specific use and comparative value
of the alternative marketing opportunities it has approved for productions in the most recently ended
calendar year. The report is to be provided by on or before Feb. 1
st
to each member of the House
Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs.
Effective Aug. 1, 2015, and applicable for productions receiving initial certification on or after that
date.
(Amends R.S. 47:6007(B)(1) through (8), (9)(intro.para.), (10) through (16), (C)(1)(c)(i), and (D)(6),
6022(C)(1) through (3), (4)(intro.para.), (5)(a)( intro.para.), (6) through (9), 10(a), (11) through (14),
and (D)(2)(a); Adds R.S. 47:6007(B)(17) and (18), 6022(B)(15) and (16), and (L); Repeals R.S.
47:6007(D)(8))