HLS 15RS-1095 ENGROSSED
2015 Regular Session
HOUSE BILL NO. 704
BY REPRESENTATIVES THIERRY, GAINES, HUNTER, JACKSON, JAMES, AND
SMITH
TAX CREDITS: Establishes an annual cap on the amount of motion picture investor tax
credits that can be certified annually
1 AN ACT
2To enact R.S. 47:6007(C)(1)(e), relative to income tax credits; to provide with respect to the
3 motion picture investor income tax credit; to provide for an annual program cap for
4 the motion picture investor tax credit; to provide for the promulgation of rules and
5 regulations; to provide for an effective date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:6007(C)(1)(e) is hereby enacted to read as follows:
8 ยง6007. Motion picture investor tax credit
9 * * *
10 C. Investor tax credit; specific productions and projects.
11 (1)
12 * * *
13 (e) Beginning January 1, 2016, the aggregate amount of credits certified for
14 all investors pursuant to this Section during any calendar year shall not exceed one
15 hundred fifty million dollars. An application for initial certification of a project
16 shall be submitted to the office prior to the granting of the credit, and the granting
17 of credits under this Section shall be on a first-come, first-served basis. If the total
18 amount of credits applied for in any particular year exceeds the aggregate amount of
19 tax credits allowed for that year, the excess shall be treated as having been applied
20 for on the first day of the subsequent year. The secretary shall provide for the
21 administration of the annual aggregate maximum amount of credits certified by the
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1095 ENGROSSED
HB NO. 704
1 office through rules and regulations promulgated in accordance with the
2 Administrative Procedure Act, subject to oversight by the House Committee on
3 Ways and Means and the Senate Committee on Revenue and Fiscal Affairs.
4 * * *
5 Section 2. This Act shall become effective on January 1, 2016; if vetoed by the
6governor and subsequently approved by the Legislature, this Act shall become effective on
7January 1, 2016, or on the day following such approval by the Legislature, whichever is
8later.
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 704 Engrossed 2015 Regular Session Thierry
Abstract: Beginning Jan. 1, 2016, establishes an annual $150 million program cap on the
amount of motion picture investor tax credits certified by the office.
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 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 whose salary exceeds $1 million
dollars.
Proposed law retains present law but limits the program to an annual $150 million cap in tax
credits that may be certified each year. Credits shall be granted on a first-come, first-served
basis. If the total amount of credits applied for in any particular year exceeds the aggregate
amount of credits allowed for that year, the excess shall be treated as having been applied
for on the first day of the subsequent year.
Proposed law requires the secretary to promulgate rules and regulations for administration
of the annual cap in accordance with the procedures of the Administrative Procedures Act,
subject to oversight by the House Ways and Means Committee and the Senate Revenue and
Fiscal Affairs Committee.
Effective Jan. 1, 2016.
(Adds R.S. 47:6007(C)(1)(e))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.