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892666v.1
project, which are certified, verified, and
approved as provided for in the new law.
A "base investment credit" is authorized for
"production expenditures" for a "state certified
musical or theatrical production," or for
investments made by a person in such
production which are, in turn, expended for such
production expenditures.
The credit includes "production expenditures,"
expenditures for the payroll of residents,
"transportation expenditures," and expenditures
for employing college and vo-tech students
related to such production or productions, that
are "certified, verified, and approved" as
provided for in the new law.
Until 1/1/14 and under certain conditions, a
"base investment credit" may be granted for
"expenditures in the state" for the construction,
repair, or renovation of a "state-certified musical
or theatrical facility infrastructure project," or
for investments made by a financier in such
infrastructure project which are, in turn,
expended for such construction, repair, or
renovation. The credit cannot exceed $10
million per project.
New law provides that no more than $60 million
in tax credits shall be granted for infrastructure
projects per year, granted on a first-come, first-
served basis. If total credits applied for exceed
this amount, the excess is treated as having been
applied for on the first day of the next year.
New law provides that 50% of the tax credits
granted under new law for infrastructure projects
are to be "reserved" for projects located outside
of Jefferson and Orleans parishes, but prohibits
credits granted for projects within those parishes
from being "conditioned" upon the granting of
tax credits for projects outside of those parishes.
"Expended in the state" for both productions and
infrastructure projects is defined as expenditures
for tangible property to be used within the state;
and in the case of services, expenditures for
services performed within the state; and in the
case of "intangible property," means the
acquisition of permits, licenses, or other rights
related to such productions or infrastructure
projects used within the state.
Subject to the limitations on the credit for
infrastructure projects, the "base investment
credit" provides income tax credits ranging from
10% to 25% of the base investment, depending
on its amount.
"Base investment" is defined for infrastructure
projects as "expenditures in the state" for the
construction, repair, or renovation of a state-
certified musical or theatrical facility
infrastructure project.
"Base investment" is defined for productions as
expenditures or investments made by a person
for "production expenditures" for a state-
certified musical or theatrical production. Such
"production expenditures" are defined as
development, production, or operating
"expenditures in this state" for a state-certified
production.
New law grants an additional transportation
expenditure credit for large percentages of
certified, verified, and approved "transportation
expenditures"; provided that transportation
services are purchased through a company
which has a significant business presence in the
state.
New law grants an additional tax credit of one
tenth of one percent of the amount expended to
employ students enrolled in Louisiana colleges,
universities, and vo-tech schools in a state-
certified production in arts-related positions,
such as actor, writer, producer, stage hand, or
director, or as a technician working on aspects of
the production such as lighting, sound, and
actual stage work, or working indirectly on the
production in accounting, law, management, and
marketing.
New law grants an additional tax credit of 10%
of base investment that is expended on payroll
for Louisiana residents employed in connection
with a state-certified musical or theatrical
production, except for the students, or the
construction of a state-certified musical or
theatrical facility infrastructure project.