Q. How does the program define a qualified musical or theatrical production?
A. Louisiana's Musical and Theatrical Production Incentive Program is open to concert, theatrical and other live productions that originate or debut in the State of Louisiana.
Q. Do not-for-profit organizations qualify for the program?
A. Yes. Although it is necessary to establish taxable liability with the State of Louisiana, it is not necessary to owe taxes. Not-for-profit organizations are issued credits in the form of a "refund of overpayment" by the Louisiana Department of Revenue.
Q. What is a tax credit?
A. A tax credit is a credit that can be used against Louisiana tax liability. In the case of the musical and theatrical production income tax credits, the credits are refundable or transferrable.
Q. What can I do with these tax credits?
A. Musical and theatrical production income tax credits are refundable or transferrable.
Q. Will I need to hire a CPA?
State law requires that projects that apply or submit a request for final certification on or after January 1, 2016, shall be required to use a CPA selected by Louisiana Entertainment. Any project that is currently initially certified or that will apply on or before January 1, 2016 may:
- engage a CPA of their choice and submit a cost report prepared by the CPA with their request for final certification on or before December 31, 2015, or
- elect to use a CPA assigned by Louisiana Entertainment, but must submit the advance deposit upon making this request.
Q. Can I get tax credits for payroll of out-of-state residents?
A. Any qualified expenditures can receive the tax credit award up to 18%, (25% as of July 1, 2018) regardless of whether the labor is performed by Louisiana residents, as long as the work is performed in the State of Louisiana. All labor must be verified to have been performed in Louisiana, and any work performed outside of the state would not qualify.
Q. Is there a minimum amount I have to spend in order to receive credits?
A. The minimum that must be expended in Louisiana is $100,000 in Louisiana on the project(s) for which the application is made.
Q. What is the maximum amount in tax credits my project can receive?
A. There are no per-project or program caps on musical and theatrical production income tax credits. Musical and theatrical production infrastructure income tax credits are capped at $7.2 million per project ($10 million effective July 1, 2018) with a $60 million annual state cap ($43.2 million between July 1, 2015 and June 20, 2018).
Q. Can this incentive be used in combination with other Louisiana Entertainment incentives?
A. Louisiana Entertainment has many business incentives, some of which may be combined with the musical and theatrical production income tax credit. Claiming identical expenditures for more than one Louisiana Entertainment incentive program is prohibited.
Q. Is there an application fee?
A. Yes. The fee is assessed as 0.5% (0.005) of proposed tax benefit in Louisiana with a $500 minimum fee and $15,000 maximum fee. Make check or money order payable to Louisiana Economic Development. No cash is accepted. The fee is non-refundable.
Q. When will I know if my project qualifies?
A. As soon as we have had a chance to review and clear up any outstanding issues in the application (which we strive to complete as quickly as possible), we issue an Initial Certification that acknowledges a project's applicable expenditures based on those proposed in the application. The Initial Certification is not a tax credit; rather, it is a certification that the project is qualified to potentially earn tax credits.
Q. When do I receive my tax credits?
A. Tax credits are issued following a project's Final Certification.