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 52 Engrossed 2020 First Extraordinary Session Coussan
Abstract: Increases the amount of the digital interactive media and software tax credit from 18%
to 20% of the base investment with the additional 2% to be used for training new employees
and expands eligibility for the credit to include information technology services.
Present law authorizes a digital interactive media income tax credit for state-certified productions
submitted to the office of entertainment industry development on or after July 1, 2017, and
subsequently approved by the office equal to 18% of the base investment. Further provides for an
additional 7% tax credit to the extent that the base investment is expended on payroll for La.
residents employed in connection with a state-certified production. Tax credits are earned by a
company at the time funds are expended in La. on a state-certified production.
Proposed law retains present law but, beginning July 1, 2023, authorizes an additional 2% tax credit
in the base investment rate for state-certified production expenditures. Proposed law requires the
Dept. of Economic Development (DED) to retain the monies from the 2% additional tax credit on
behalf of the applicant to be used to reimburse the applicant for eligible expenses incurred to train
new employees who come from economically disadvantaged groups and targeted demographics
such as women, minorities, and veterans. Further provides that eligible expenses include costs for
training new employees, training providers, educational and training materials, and travel expenses.
Proposed law requires DED to promulgate rules in accordance with present law, subject to oversight
by the House Ways and Means and Senate Revenue and Fiscal Affairs committees establishing a
process for submission of expenses for reimbursement, the payment of eligible expenses, and the
refund of remaining monies.
Present law defines "digital interactive media" as products or platforms that are intended for
commercial production, use, or distribution that contain at least two of the following types of data:
text, sound, fixed images, animated images, video, or 3D geometry, and that have certain specified
characteristics.
Proposed law retains present law but expands the definition of "digital interactive media" to include
information technology services provided in cybersecurity, cloud engineering, and data analytics in
support of digital systems or platforms.
Present law defines a "state-certified production" as a digital interactive media production or a
component part thereof. Proposed law retains present law but expands the definition of "state-certified production" to include
information technology services provided in cybersecurity, cloud engineering, and data analytics in
support of digital systems or platforms approved by the office.
Effective July 1, 2023.
(Amends R.S. 47:6022(C)(5)(a) and (13); Adds R.S. 47:6022(D)(4)(c))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Change the effective date for authorization of the additional 2% tax credit in the base
investment rate for state-certified production expenditures from July 1, 2021, to July 1,
2023.
2. Change the effective date for provisions of proposed law from July 1, 2020, to July 1,
2023.