GREEN SHEET REDIGEST
HB 748 2015 Regular Session Stokes
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX CREDITS. Provides relative to the motion picture investor tax credit and the
motion picture infrastructure investor tax credit
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 provides 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 for productions granted initial certification on or after Jan. 1, 2016, makes
several changes regarding the procedures and time periods involved with initial certification
of expenditures.
Proposed law changes the present law definition for motion picture to include eligibility for
motion pictures developed for viewing online, and adds a definition for "taxpayer".
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 changes present law by reducing the number of times expenditures can be
certified and changes the timing of certifications for expenditures from twice during the
production to once after the project is completed.
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 provides that the credit, once certified, may be used against a prior year's tax
liability.
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 the time period within which the Dept. of Revenue may recapture
credits which were granted and then disallowed, providing for specific time periods based
upon whether the credit was paid, claimed, or registered with the La. Tax Credit Registry.
Proposed law removes the requirement that the Department of Economic Development notify
the Department of Revenue and provide documentation in certain instances of a credit
transfer. Proposed law requires the transferor to submit additional information as necessary
under certain circumstances of a credit transfer.
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Prepared by Ashley Menou. Proposed law allows a bank or other lender to be named as an irrevocable designee in the
initial tax certification by a motional picture production company to the office in certain
circumstances.
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)-(16), (C)(1)(intro. para.), (a)(iii) and (b)(iii), (4)(f), and
(D)(2)(d)(i); Adds R.S. 47:6007(17) and (18), (C)(1)(c)(iii) , (D)(1)(d)(iv) and (2)(d)(iii),
(G), and (H))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Add a starting date for provisions of proposed law with regard to the motion
picture investor tax credit.
2. Add a definition for "taxpayer" for purposes of the motion picture investor tax
credit.
3. Add provisions governing the time period authorized for the recovery of
disallowed tax credits by the Dept. of Revenue.
The House Floor Amendments to the engrossed bill:
1. Change provisions governing transfers of tax credits when a credit is sold by a
transferor with no right to claim or use the credit.
2. Add prohibition on the disallowance or recapture of a tax credit claimed by a
good faith purchaser.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Specifies that for all state-certified productions approved on or after July 1, 2015,
marketing expenditures will be considered production expenditures.
2. Adds that if at the time of application for initial certification, post-production
activities will occur in Louisiana, a supplemental request for certification of
expenditures may be submitted for consideration and the cost of any verification
will be paid by the production company.
3. Adds that a credit may be used against a prior year's tax liability once certified.
4. Deletes provision giving the Department of Revenue recourse against the
transferor in certain circumstances.
5. Allows Department of Revenue authority to require additional documentation as
necessary in credit transfers.
6. Allows a bank or other lender to be named as an irrevocable designee in the
initial tax credit certification in certain circumstances.
7. Deletes provision regarding recapture of credits.
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Prepared by Ashley Menou.