Qualified Entertainment Company

The Qualified Entertainment Company, or QEC, program provides a tax credit on annual W2 wages to entertainment companies that create well-paid jobs for Louisiana residents.

  • The program provides a 15% credit for each new job whose QEC payroll is equal to or greater than $45,000 per year, up to $66,000 per year
  • Provides a 20% credit for each new job whose QEC payroll is equal to or greater than $66,000 per year, but no greater than $200,000 per year

Eligibility

The Secretary of the Department of Economic Development may consider program applicants meeting the following criteria:

  • Business must be engaged in the development or distribution of audio, visual, or both audio-visual entertainment products for public consumption, directly or indirectly.
  • Entity must be authorized to do business in the state of Louisiana

The following business types are ineligible:

  • Telecommunications

Job Requirements

  • Create a minimum of five new direct jobs that meet or exceed a salary of $45,000 per year per person
  • These jobs must be full time, (full-time employees — working an average of 30 hours or greater per week)
  • Filled by residents of the state at the approved QEC’s physical location in Louisiana
  • Can NOT have existed previously on the QEC’s payroll in Louisiana, nor previously on the payroll of the QEC’s parent entity, subsidiary, or affiliate in Louisiana, or previously on the payroll of any business whose physical location and employees are substantially the same as those of the QEC in Louisiana

Program Statutes & Rules:

All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register.


Getting Started

Please fill out the application and send to OEID according to the instructions.


Next Steps

Application Review and Contract

1. Applicant completes and submits the online application with supporting documents and fees in their entirety to the Office of Entertainment Industry Development (OEID).

2. After application review and consideration of all discretionary factors, OEID and the Secretary of LED may execute a contract with an applicant for a period of up to five years, providing the terms and conditions for its participation. The contract shall set forth an estimate of jobs and payroll per calendar year which will be tentatively allocated to the QEC for annual cap computation purposes. A five-year renewal contract may be authorized if the applicant has complied with all of the terms of the contract.

3. Prior to entering into a contract, the applicant shall submit a deposit of the production expenditure verification report fee of $7,500 for a company with qualified expenditures projected to be between $250,000 and $5 million. The applicant will be assessed the department's actual cost for the production expenditure verification report fee each year. The maximum fee for the report shall be $15,000 per year. OEID shall directly assign a CPA to prepare an expenditure verification report on an applicant’s payroll expenditures. The applicant shall make all records related to the tax credit application available to OEID and the CPA.

4. The applicant executes the contract and returns it to OEID.

Issuance of Credits

1. Once the first year covered under the QEC’s contract is finished and W2s issued by the QEC, the QEC shall notify OEID that it is ready to proceed to audit. The audit must be performed by an independent CPA licensed in Louisiana, assigned by OEID The audit must conform to GAAP/GAAS. A final certification letter (issuance of credits) or denial will be issued by the department within 120 days of receipt of a complete audit package.

2. The QEC shall be responsible to provide any supporting or requested documentation to the CPA.

3. OEID may require additional support and/or verification for certain expenditures.

4. After all supporting documentation is received and reviewed, OEID and LED will issue a "Final Certification" letter approving the qualifying expenditures and certifying the tax credits.

5. The credits can now be redeemed or transferred to the state for 90% of the face value.