Louisiana Motion Picture Incentive Act:

LOUISIANA TAX CREDITS:

The global buzz is on about Louisiana motion picture tax credits. The Louisiana Motion Picture Incentive Act (“Act”) has been described as one of the most aggressive production tax incentive plans of the 21st century. Initially enacted in 2002 and amended on a regular basis, this cutting-edge legislation is a valuable tool to producers in reducing their production budget or increasing their return to investors or financiers.

Major studios, networks and independent producers are all taking advantage of these state production incentives. But tax credit brokers and middlemen buy tax credits low from producers and sell high to taxpayers, keeping the great difference for themselves.  Don't be fooled by brokers saying their services are "free" - they keep a large spread for themselves.

But AELGLA negotiates tax credit sales without broker commissions, so producers save middleman costs. Be sure you don't leave money on the table!

QUALIFYING PRODUCTIONS:

The tax incentives of the Act apply to productions which meet certain minimum thresholds and other qualifying criteria such as distribution plan, including:

• Feature films,

• Independent movies,

• Television series,

• Back-door pilots,

• MFTVMs (made-for-television-movies),

• Reality programs;

• National commercials,

• Music videos, and,

• and other similar projects.

• Only a few projects are excluded, such as live sports events, news programs and commercials or other productions that are not nationally distributed.

NUTS & BOLTS OF THE LOUISIANA INCENTIVES:

Louisiana offers lucrative tax credits, and AELGLA transacts tax credit sales for producers without paying expensive commissions to tax credit brokers and middlemen. Producers receive cash at closing of the credits, which can occur during and after production. The information below is for illustrative purposes only and other criteria may apply. Contact AELGLA for information relating to a film or a multi-picture slate.

Motion Picture Production Tax Credits

A. Investor Tax Credits:

·    For productions certified between January 1, 2004 and December 31, 2005, 10-15% tax credits on actual expenditures, with minimum thresholds.

·    For productions certified after January 1, 2006, 25% tax credits on Louisiana expenditures.

B. Employment/Payroll Tax Credits:

·    For productions certified between January 1, 2004 and December 31, 2005, 10-20% tax credits on Louisiana payroll and benefits, with minimum thresholds (excludes salary portion of $1 million or more to any individual).

·    For productions certified after January 1, 2006, 10% on Louisiana payroll and benefits (excludes salary portion of $1 million or more).

Other Tax Credit Incentives

A. Music Tax Credit of up to 20%, subject to threshold and cap limitations, on:

·    Music performed, composed or recorded by a Louisiana musician.

·    Music released or published by a Louisiana company domiciled and headquartered in Louisiana.

B. Game Development Tax Credit of up to 20% to qualified video game developers working in Louisiana.

C. “Broadway South” Musical/Theatrical Production and Infrastructure Tax Credits:

·    Up to 25% for qualified live musical or theatrical performances and related infrastructure, subject to threshold and cap limitations.

·    Transportation expense tax credit to provide resources for theatrical productions.

·    Employment tax credits of 10% on local employees (excludes salaries of $1 million or more).

·    Additional 1/10% employment tax credit for hiring college and vocational school students.

D. Infrastructure Tax Credits:  Contact AELGLA for up to date information on tax credits available for state-of-the-art infrastructure to be built or renovated in Louisiana.