Do your homework before Wednesday

The following information is from the Louisiana Film & Television site. This is why Hollywood's accountants are sending productions down there.


EMPLOYMENT / LABOR TAX CREDIT

The new law provides that until July 1, 2006, a motion picture production company is entitled to a tax credit for the employment of La. residents in connection with production of a nationally distributed motion picture, video, television series, or commercial made in Louisiana.

The credit is equal to 10% of the total aggregate payroll for residents employed in connection with such production when total production costs in Louisiana equal or exceed $300,000 but less than $1 million during the taxable year. The credit shall be equal to 20% of the total aggregate payroll for residents employed in connection with such production when total production costs in Louisiana equal or exceed $1 million during the taxable year.

SALES AND USE TAX EXCLUSION

The new law grants an exclusion from state sales and use tax (4%) until January 1, 2007.

The production company will be granted the "exclusion" if it reports anticipated expenditures of $250,000 or more from a checking account in a financial institution in Louisiana in connection with filming or production of one or more nationally distributed motion pictures, videos, television series, or commercials in the state of Louisiana within any consecutive 12-month period.

INVESTOR TAX CREDIT

The new law grants a tax credit against state income tax for taxpayers domiciled and headquartered in Louisiana.

The objective of this tax credit is to attract private investment for the production of nationally distributed feature length films, videos, television programs, or commercials made in Louisiana, in whole or in part for theatrical or television viewing or as a television pilot.

The investor shall earn the tax credit at the time of such investment.

If the total base investment is greater than $300,000 and less or equal to $8 million dollars, each taxpayer shall be allowed a tax credit of 10% of the actual investment made by that taxpayer.

If the total base investment is greater than $8 million dollars, each taxpayer shall be allowed a tax credit of 15% of the investment made by that taxpayer.