Tax Credit FAQs What is the film production incentive called? Motion Picture Investor Tax Credit How much is the incentive? A 30% investor tax credit is granted based upon the total in-state expenditures of a motion picture production. An additional 5% labor tax credit is earned on the payroll of Louisiana residents that are employed by a film or television production. The tax credits are fully transferable. Louisiana has no limit to the amount of tax credits that can be earned. How does a tax credit work? A tax credit can be applied toward Louisiana state income tax. Since most motion picture investors do not have Louisiana tax liability, the credit can not be personally utilized. This is why the tax credit is fully transferable. Anyone may purchase the tax credit. Generally, tax credit brokers purchase a motion picture project’s earned tax credits. If the incentive is based on location spend what exactly does "in-state spend" mean? Location spend includes pre-production, production & post-production expenditures directly incurred in Louisiana that are used in a state-certified production; including without limitation expenses such as above-the-line and below-the-line expenses, equipment rental & purchases, travel, props, location fees, payroll, editing, and sound mixing. Does local spend include the following? Foreigners working in Louisiana? The 30% credit includes the entire spend on payroll (above and below the line) regardless of where the cast or crew are domiciled. To earn an additional 5% on local hire payroll, that labor must be a resident of Louisiana (which is defined as a person with permanent residence in Louisiana for at least six months of the year). Finance Fees? Yes, as long as it is purchased from a Louisiana company. Bond Fees? Yes, as long as it is purchased from a Louisiana company. Per diems? Yes. Eligibility - who can use this incentive? A motion picture project is a feature-length film, video, television episode, Movie of the Week, or commercial made in Louisiana. Only television coverage of news and athletic events is excluded. The motion picture project must spend at least $300,000 in Louisiana to qualify. We can help you maximize your tax credit benefits. Also, we are currently offering tax credits services with NO BROKERAGE FEES. For more information email us at Contact Us.