Provides relative to motion picture investor tax credits. (See Act) (EN SEE FISC NOTE GF RV See Note)
Impact
The impact of SB106 on state laws includes the establishment of stricter guidelines for the certification and transferability of motion picture tax credits. By enforcing rigorous standards for determining eligibility, the bill aims to ensure that the tax credits are appropriately awarded only to productions that genuinely invest in the local economy. Furthermore, it introduces provisions for the recapture of credits if the required conditions are not met, thereby safeguarding state revenue and minimizing potential tax fraud associated with these credits.
Summary
Senate Bill 106 aims to amend certain statutes related to motion picture investor tax credits in Louisiana. The bill seeks to provide clearer definitions and requirements for eligibility regarding these tax credits, which are designed to incentivize investment in film and television productions within the state. Key provisions include defining what constitutes a state-certified production and specifying the parameters for the allowable expenditures that qualify for tax credits, such as preproduction, production, and postproduction costs incurred in Louisiana.
Sentiment
Overall, the sentiment around SB106 appears to be supportive among stakeholders in the motion picture industry, as it aims to clarify the tax credit process and potentially enhance Louisiana's attractiveness as a filming location. However, there may be concerns from those who fear increased regulatory scrutiny could deter smaller projects from seeking certification or accessing funding for their productions. The balance between encouraging industry growth and maintaining oversight is a recurring theme in discussions surrounding this legislation.
Contention
Notable points of contention regarding the bill center on the potential burdens it could impose on smaller production companies. Critics might argue that the enhanced requirements for certification and additional audits could dissuade independent filmmakers from filming in Louisiana, therefore limiting the diversity of productions within the state. This highlights a tension between the need for accountability in taxpayer-funded incentives and the desire to cultivate a vibrant and inclusive film industry.
Requires sellers of motion picture investor tax credits to qualify for and be included in a Public Registry of Motion Picture Investor Tax Credit Brokers. (1/1/16) (EN +$60,000 GF EX See Note)
Authorizes the recapture of disallowed tax credits from owners of entities created or organized for the primary purpose of receiving or selling motion picture investor tax credits. (gov sig) (RE SEE FISC NOTE GF RV See Note)
Reduces the amount of certain tax credits beginning January 1, 2014, for income tax credits and January 1, 2015, for corporate franchise credits (RE INCREASE GF RV See Note)
Reduces the amount of the income tax credit for state-certified productions and removes authority to transfer or sell motion picture investor tax credits (OR INCREASE GF RV See Note)
Establishes a registry for tax credits and provides relative to the period of time to report claims or a transfer to the registry (EN SEE FISC NOTE GF EX See Note)