Digital Media Incentives
Louisiana's digital interactive media incentive targets animation, gaming and digital effects. 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 interactive media industry. Louisiana is poised to be a global leader in this domain. Aggressive tax incentives, aggressive workforce development efforts 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.
As a result of the Louisiana 2009 legislative session, the Baton Rouge area can now claim to offer the highest digital media incentives in the country:
- fixed rate of 25% of production costs expended in Louisiana
- 35% of labor costs in Louisiana paid to Louisiana residents
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 the Baton Rouge area.
Louisiana Digital Media Tax Incentive Link: Application for digital media production
Motion Picture Incentives
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.
Sound Recording Investor 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.
$10 Billion Cash Incentives Available Through GO Zone and Renewal Community
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.
Federal Business Incentives
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 (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.
New Markets Tax Credits
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.