Frequently Asked Questions related to the Musical and Theatrical Production Tax Credit.
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 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. How much can I receive in musical and theatrical production income tax credits?
A. You can receive up to 35% of your qualified Louisiana expenditures as refundable or transferrable tax credits.
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?
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 25%, 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 investment?
A. The minimum investment 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 $10 million per project with a $60 million annual state cap.
Q. Can this incentive be used in combination with other LED incentives?
A. LED 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 LED incentive program is prohibited.
Q. Is there an application fee?
A. Yes. The fee is assessed as 0.2% of 25% of your estimated expenditures in Louisiana with a $200 minimum fee and $5,000 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.