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 686 Original 2017 Regular Session Broadwater
Abstract: Establishes the La. Motion Picture Production Cooperative Endeavor Program and
authorizes a tax credit against state income tax pursuant to the cooperative endeavor
agreement.
Proposed law establishes the Louisiana Headquartered Motion Picture Production Cooperative
Endeavor Program.
Proposed law defines a “Louisiana bank” as a financial institution that is regulated by the office of
financial institutions and that has one or more branches in the state.
Proposed law defines a “qualified production company” as a person, corporation, partnership, limited
liability company, or other business entity, organized, domiciled and headquartered in Louisiana, that
is primarily engaged in the business of creating qualified productions or qualified media, or a wholly
owned subsidiary of such a person or entity that is organized, domiciled and headquartered in
Louisiana and complies with certain requirements as provided in proposed law.
Proposed law defines a “qualified production” as a feature-length film, short film, video, television
pilot, television series, television movie of the week, animated feature film, animated short film,
animated television series, documentary made in Louisiana, in whole or in part, for theatrical or
television viewing, or for viewing on any digital or online platform, that is produced by a qualified
production company and is subject to a completion bond that makes certain guarantees as provided
in proposed law. Further, the term "qualified production" shall not include the production of news
coverage, athletic events, music or other festivals, commercials, or what is generally considered or
marketed to be, reality television or reality programming or any other production that is required to
maintain records pursuant to federal law.
Proposed law authorizes the state, through the Louisiana Economic Development Corporation, to
enter into cooperative endeavor agreements with a Louisiana Bank and a qualified production
company for the purpose of financing a portion of the production expenses of a qualified production
undertaken by the qualified production company.
Proposed law authorizes a tax credit against state income tax for Louisiana taxpayers pursuant to a
Louisiana Headquartered Motion Picture Production Cooperative Endeavor agreement ("CEA tax
credit"). The CEA tax credits shall be earned by a qualified production company. CEA tax credits
shall be regarded as separate and distinct from all other tax credits provided in present law regarding
the motion picture production tax credit. Present law (R.S. 47:6007) authorizes a tax credit for state-certified motion picture productions.
Further provides that in Fiscal Years 2016 through 2018, the tax credit is limited to an aggregate total
of $180 million each fiscal year.
Proposed law provides that beginning in Fiscal Year 2019-2020, and each fiscal year thereafter,
credits in an amount not to exceed $20 million issued under the provisions of present law shall be
reserved for the Louisiana Headquartered Motion Picture Production Cooperative Endeavor Program
established in proposed law. Credits available for the cooperative endeavor program shall be
included in the total aggregate amount of caps authorized pursuant to the provisions of present law
and shall have priority over all other claims filed by taxpayers or transfers of tax credits to the Dept.
of Revenue that would otherwise be applied against the total aggregate amount of caps authorized
pursuant to the provisions of this present law. To the extent that the Louisiana Economic
Development Corporation does not enter into cooperative endeavor agreements in an amount up to
$20 million dollars in any fiscal year, the unallocated portion shall not otherwise be available to be
earned.
Effective upon signature of the governor.
(Adds R.S. 47:6007(C)(1)(d)(ii)(dd) and R.S. 51:2316)