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)
The introduction of SB 98 is expected to significantly impact state law regarding motion picture tax credit transactions. By necessitating that brokers undergo a criminal background check and qualify for registration, the bill aims to reduce fraudulent activities associated with tax credit sales. This could bolster investor confidence and promote healthy economic growth in the film sector while also ensuring that the interests of the state and its taxpayers are adequately protected.
Senate Bill 98 aims to regulate the sale and brokerage of motion picture investor tax credits in Louisiana. The bill establishes a Public Registry of Motion Picture Investor Tax Credit Brokers, requiring individuals who sell or broker these tax credits to qualify and register with the Department of Revenue. This initiative is designed to enhance the integrity of the investment process in the state's film industry by ensuring that brokers meet specific qualifications and do not have a criminal history related to taxes, tax credits, or fraud.
General sentiment towards SB 98 appears to be supportive among lawmakers, as the bill unanimously passed the Senate with a 38-0 vote. Proponents argue that the legislation will create a more trustworthy environment for investors, which is crucial for the continued success of Louisiana's film industry. However, there may be concerns about the implications of increased regulatory measures, specifically regarding the burden placed on potential brokers to comply with the registration and qualification process.
Despite the supportive sentiment, some stakeholders may view the new requirements as overly restrictive. The necessity for criminal background checks and the establishment of penalties for non-compliance (including fines and potential imprisonment) could be seen as heavy-handed by those in the brokerage community. The balance between ensuring investor protection and promoting an accessible brokerage environment will likely remain a point of discussion as the regulations take effect.