Louisiana House Bill HB653

Louisiana 2025 Regular Session

• Introduced: 4/23/25
• Refer: 4/24/25
• Report Pass: 5/13/25
• Engrossed: 5/19/25
• Refer: 5/20/25
• Report Pass: 6/1/25
• Enrolled: 6/4/25
• Vetoed: 6/20/25

Caption

Transfers the sound recording investor tax credit program from La. Economic Development to the Dept. of Culture, Recreation and Tourism and extends the duration of the program (EN DECREASE GF RV See Note)

Impact

The revised bill provisions articulate the base investment requirements and the credits associated with the hiring of Louisiana residents for Qualified Music Companies (QMCs). It increases the tax credit percentage from 18% to 25% for certain investments and specifies credits related to payroll for new jobs, thereby aiming to stimulate the local economy and promote employment in the cultural sector. These changes are likely to provide a more significant incentive for filmmakers and sound recording companies to invest in Louisiana.

Summary

House Bill 653 aims to amend and reenact provisions related to the sound recording investor tax credit in Louisiana. It reassigns the administration of this tax credit program from the Louisiana Economic Development Department to the Department of Culture, Recreation and Tourism. The bill extends the duration of the program, allowing investors additional time to apply for tax credits related to sound recording productions. With clearer definitions and a revised credit structure, the bill seeks to enhance support for Louisiana's music industry by incentivizing investment and job creation in sound recording ventures.

Sentiment

Overall sentiment regarding HB 653 appears positive among stakeholders in the music and cultural sectors, who advocate for the benefits these tax incentives could bring to job creation and economic growth within Louisiana. However, potential concerns may arise regarding the administration of tax credits and the efficiency with which these benefits are distributed and monitored, prompting discussions on accountability within the program's new framework.

Contention

Notable points of contention within the bill may center around the transition of oversight from one department to another, which could lead to uncertainties regarding the administration of the tax credit program. Additionally, ensuring that the tax credits effectively foster economic growth in the intended areas without creating undue fiscal pressures on the state budget will likely be a point of ongoing discussion among lawmakers and stakeholders.