How do tax credits work?
- Thread starter frokeyman
- Start date
In a nutshell, some states provide tax exemptions or reductions for filming in their state. For instance, if the sales tax is 7% the production may only have to pay 3%. To indie filmmakers this doesn't amount to much, but if a production spends $10 million, 7% is $700K in taxes, 3% is only $300k in taxes, thereby saving the production $400k. Most states will reimburse you when the shoot is wrapped. Some states require the saved taxes to be spent in the state. These rules will vary state by state, and there are sometimes county, city and town regulations that need to be complied with as well. You should speak to an accountant and a tax attorney qualified to practice in Louisiana. S/he will then coordinate with the states film commission. And I sometimes wonder if even they can figure all this crap out....
http://www.louisianaentertainment.gov/film/files/RR03003.pdf
BTW, just from glancing at the first few sections you would not qualify.
"the definition of “motion picture” to mean a nationally distributed feature-length film, video, television series, or commercial made in Louisiana, in whole or in part for theatrical or television viewing or as a television pilot"
"To qualify for sales and use tax relief under the Louisiana Motion Picture Incentive Act, a motion picture production company must make at least $250,000 in purchases from Louisiana vendors during a consecutive 12-month period and the expenditures must be made from a checking account at a Louisiana financial institution."
Got a quarter mil laying around?
http://www.louisianaentertainment.gov/film/files/RR03003.pdf
BTW, just from glancing at the first few sections you would not qualify.
"the definition of “motion picture” to mean a nationally distributed feature-length film, video, television series, or commercial made in Louisiana, in whole or in part for theatrical or television viewing or as a television pilot"
"To qualify for sales and use tax relief under the Louisiana Motion Picture Incentive Act, a motion picture production company must make at least $250,000 in purchases from Louisiana vendors during a consecutive 12-month period and the expenditures must be made from a checking account at a Louisiana financial institution."
Got a quarter mil laying around?
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I don't live in Louisiana, but I feel like I learned a lot from this thread. Thanks! I don't think I'm going to have to worry about tax credits for a while.
Sometimes I think it would be easier just to BECOME a tax attorney or an accountant so I could wade though all of the "crap" with more grace. Then I remember I hate numbers and resolve to just pay someone to handle my crap.
Sometimes I think it would be easier just to BECOME a tax attorney or an accountant so I could wade though all of the "crap" with more grace. Then I remember I hate numbers and resolve to just pay someone to handle my crap.