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Louisiana's digital media incentive targets animation, gaming and
digital efffects. The program is designed to support, build and nurture
a highly skilled, creative and technology-driven industry in the state
of Louisiana.
Our state is dedicated to developing the digital media industry.
The
global video game market alone is worth $30 billion
- that's larger
than motion picture and music combined. Louisiana is poised
to be a global leader in this domain. Aggressive tax incentives,
aggressive work force development at the university and community
college levels, and a highly developed, publicly funded 40Gb network
infrastructure around the state give Louisiana a natural leadership
position in the digital media sector.
Louisiana offers a scalable tax incentive program over the life of
a single production. In the first two years of
production on the digital media project, there
is a 20% tax credit that is earned. Productions
earn tax credits on the amount they have invested
and expended within the state, on a state-certified
digital media production. Tax credits are fully transferable and can
be sold. In
addition these tax credits can be combined with
other state incentive programs such as the Quality Jobs Incentive,
to maximize the value of your company's investment in Louisiana.
Louisiana H.A. 346 Digital Media Tax Incentive Link:
Application for digital media production
Louisiana has seen the highest statewide film activity
growth in the
country and is currently the top production location
of choice outside of
Los Angeles and New York. Louisiana's film industry
has experienced an
annual employment growth rate of 23 percent each
year -- the highest
in the nation. Over the last few years the annual
growth in wages has
been greater than 31 percent. (ERA Study)
This success is due, in part, to an attractive
incentive package that is aggressive in attracting
the production and infrastructure development.
Louisiana’s motion
picture incentives were designed to create a strong
capital base for motion pictures and to help achieve
an independent and economically sustainable
entertainment industry. For the long term, the
production and infrastructure incentives also
serve to attract private investment for the production
of motion pictures and developing the studios, production houses
and support services to grow a native Louisiana entertainment industry.
Since the incentive program’s inception, the motion picture
industry in Louisiana has grown an astounding 5,000 percent, translating
into more than $800 million in economic stimulus for the Louisiana
economy since 2002. In 2005, approximately a third of a production’s
budget was spent in Louisiana; for 2007, that number now reaches 87
percent of a production’s total budget being spent in the state.
Louisiana has grown its local film industry union labor (IATSE) to
nearly 500 strong; an approximate 200 percent increase since 2002.
Louisiana payroll alone has amounted to an average of $40 million
per year since 2003, totaling nearly $200 million in payroll wages
earned by Louisianans. Louisiana residents have embraced the industry – well
over 2000 locals working on projects in a variety of positions.
Louisiana also benefits from the transition to digital cinema technology,
such as HD productions that are becoming increasingly prominent in
television and film. For example, at UNO's Robert E. Nims Center near
New Orleans, construction is being completed on high definition production
suites that will include online and offline editing bays, a screening
room, and an ADR (additional dialogue recording) suite. Additional
facilities such as the Celtic Media Center and Louisiana Media Services
in Baton Rouge; StageWorks, StageWest & Mansfield Studios in Shreveport;
and other projects being developed throughout the state will provide
additional state of the art facilities and services to the motion
picture industry. Louisiana is fully committed to creating production
hubs for the entertainment industry in our own backyard.
In 2007, Louisiana experienced a banner year, hosting production
of more than 50 feature films and TV movies, such as the Curious Case
of Benjamin Button, The Mist, Harold & Kumar 2, The Cleaner and
two TV series – Fox’s K-Ville and Disney’s Imagination
Movers.
Act 456 Motion Picture Production Tax Credit
Application for Motion Picture Production Tax Credit
The Louisiana Sound Recording Investor Tax Credit
was created to complete the offerings to the entertainment
industry. Much like the state's highly successful
film program, the credit is designed to boost music
and sound production development by reducing the
cost of making new master recordings, whether
distributed by CD, digital download or as part
of a soundtrack. The credit also provides a 25 percent tax credit
on sound recording infrastructure development.
Click on the links below for more information:
Act 485, Sound Recording Investor Tax Credit
Application for music/sound recording production
Application for music/sound recording infrastructure
Additionally, the state is developing and has received preliminary
approval for funding to start a comprehensive employment training
program that will target all sectors of the entertainment industry:
motion picture, sound recording and digital media.
Many small- and medium-sized businesses throughout
south Louisiana are still eligible for tax breaks
as part of the Gulf Opportunity Zone and Renewal Community Tax Credit
programs. These programs can play a major role in the region's recovery,
and incentives can be used for business renovations, building expansion,
equipment and hiring workers. A campaign is under way to raise awareness
about these incentives.
Visit YourTaxClaim.com for more information
Gulf Opportunity Zone
Louisiana's business incentive package is one of
the most aggressive in U.S. history. These incentives
demonstrate the commitment of Governor Blanco and the U.S. Congress
to the future of our state's economy.
Recently extended through 2010 for select parishes:
- 50% Bonus Depreciation and Net Operating Loss (NOL)carryback,
allows businesses to leverage investments for refunds
on past years taxes.
- Includes Calcasieu, Cameron,
Orleans, Plaquemines, St. Bernard, St. Tammany
and Washington parishes
Available through 2010 or until funds are depleted:
- $7.9 billion in Gulf Opportunity Zone Bonds available
for rebuilding.
Renewal Communities
Renewal Communities (RCs) are distressed areas
in urban and rural communities that the federal
government has targeted for development and where businesses are
eligible for billions of dollars in tax incentives.
Investors in qualified projects can obtain
a tax credit of five or six percent of the amount
invested for each year the investment is held, for up to seven years
of the credit period.
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