HLS 17RS-8 ORIGINAL
2017 Regular Session
HOUSE BILL NO. 640
BY REPRESENTATIVE STOKES
TAX CREDITS: Provides for when a motion picture production tax credit is earned by a
motion picture production company
1 AN ACT
2To amend and reenact R.S. 47:6007(C)(1)(introductory paragraph), relative to income tax
3 credits; to provide with respect to the motion picture production tax credit; to provide
4 for when tax credits are earned; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:6007(C)(1)(introductory paragraph) is hereby amended and
7reenacted to read as follows:
8 ยง6007. Motion picture production tax credit
9 * * *
10 C. Production tax credit; specific productions and projects.
11 (1) There is hereby authorized a tax credit against state income tax for
12 Louisiana taxpayers for expenditures related to state-certified productions. The tax
13 credit shall be earned by a motion picture production company at the time
14 expenditures are certified by the office and the secretary for made by a motion
15 picture production company in a state-certified production. However, credits cannot
16 be applied against a tax or transferred until the expenditures are certified by the
17 office and the secretary. For state-certified productions, expenditures shall be
18 certified no more than once per production, after project completion. However, if
19 at the time of application for initial certification, the office is notified that post-
20 production activities will take place in Louisiana, a supplemental request for
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-8 ORIGINAL
HB NO. 640
1 certification of expenditures directly related to such post-production activity may be
2 submitted for consideration by the office. The cost of any verification or audit of
3 such expenditures shall be borne by the motion picture production company. The tax
4 credit shall be calculated as a percentage of the total base investment dollars certified
5 per project.
6 * * *
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 640 Original 2017 Regular Session Stokes
Abstract: Changes when motion picture production tax credits are earned from at the time
expenditures are certified by the office to at the time expenditures are made by the
motion picture production company.
Present law authorizes an income tax credit for expenditures related to state-certified
productions. The amount of the credit is as follows:
(1)A 30% tax credit if the total base investment is greater than $300,000. However, if
a state-certified production does not include a La. promotional graphic or an
alternative marketing opportunity approved by the department, the amount of the
credit is reduced to 25% of the base investment made by the investor.
(2)A 30% tax credit for a base investment of greater than $50,000 but less than
$300,000 if each applicant accepts as a condition for earning the tax credit, that at
least 90% of the total amount of the applicant's expenditures for above the line
services shall be expended on La. residents and that at least 90% of the total number
of jobs in the production shall be jobs employing La. residents.
(3)An additional 15% tax credit for investments of greater than $300,000 if the state-
certified production is based on a screenplay owned or optioned to own by certain
La. companies that meet all requirements of present law.
(4)An additional 15% tax credit for investments expended on music owned or
copyrighted by a La. resident or La. company that meets all requirements of present
law.
(5)An additional 10% tax credit on the payroll of a production which is expended on La.
residents employed in connection with a state-certified production.
Present law provides that tax credits are earned and may be applied against a tax or
transferred by a motion picture production company at the time expenditures are certified
by the office and the secretary.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-8 ORIGINAL
HB NO. 640
Proposed law changes present law with respect to when tax credits are earned from at the
time expenditures are certified by the office and the secretary to at the time expenditures are
made by a motion picture production company in a state-certified production.
(Amends R.S. 47:6007(C)(1)(intro. para.))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.