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 748 Original 2015 Regular Session Stokes
Abstract: Numerous procedural changes to the motion picture investor tax credit program, also
includes addition of eligibility for online productions, and requirements specific to final
certifications of project expenditures for motion picture infrastructure investor tax credits.
Present law authorizes a tax credit against state income tax based on motion picture production
expenditures for state-certified productions. The tax credit is calculated as a percentage of the total
base investment dollars certified per project.
Present law authorizes an income tax credit equal to 30% of production expenditures for all state-
certified productions approved after July 1, 2009. Also provided is an additional tax credit equal to
5% of the base investment expended on payroll for La. residents employed in connection with all
state-certified productions.
Proposed law changes present law definition for motion picture to include eligibility for motion
pictures developed for viewing online.
Proposed law makes several changes regarding the procedures and time periods involved with initial
certification of expenditures.
Present law provides that the tax credit is earned when production expenditures are "certified" by
the office of entertainment industry development within the Dept. of Economic Development
("DED"). Expenditures may be certified no more than twice during the duration of a state-certified
production, unless the motion picture production company agrees to reimburse DED for the cost of
additional certifications.
Proposed law specifies that the initial certification shall be effective for qualifying expenditures
made within 12 months before and 24 months after the date of initial certification.
Proposed law adds a limitation regarding initial certification of expenditures by restricting the
expenditures which may receive initial certification to those made within six months of the
application for initial certification.
Proposed law adds a requirement that no later than six months after the expiration of the initial
certification period for the applicable state-certified production, a taxpayer is required to submit to
the office all requests and required documentation for final certification of all tax credits or the
claims to such tax credits shall be deemed waived. Proposed law changes present law by reducing the number of times and changing the timing of
certifications for expenditures from twice during the production to once after the project is
completed.
Proposed law adds requirements for consideration of productions for initial certification by requiring
DED to consider criminal convictions related to motion picture investor tax credits, or any other
serious issues which may impact the approval of the application for initial certification.
Proposed law changes the time period within which the Dept. of Revenue may recapture credits
which were issued and then disallowed.
Prior law sunset the motion picture infrastructure investor tax credit on Dec. 31, 2008, by repealing
the authority to issue credits for any state-certified project for which less than 50% of the base
investment provided for in the initial certification had been expended by Dec. 31, 2008.
Proposed law adds requirements regarding submission and consideration of audit reports for final
certification of state-certified expenditures for the motion picture infrastructure investor tax credits.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6007(B)(5), (10) through (16), (C)(1)(intro. para.), (a)(iii) and (b)(iii),
(D)(2)(d)(i), (E), and (F)(1); Adds R.S. 47:6007(B)(17), (C)(1)(c)(iii) , (D)(1)(d)(iv) and (v) and
(2)(d)(iii), (G), and (H))