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.

Eligibility
An eligible applicant is a motion picture production company which reports anticipated expenditures in the state which in the aggregate equal or exceed two hundred fifty thousand dollars in connection with the filming or production of one or more motion pictures in the state within a consecutive twelve month period. An eligible applicant's expenditures must be made from a checking account at any financial institution in Louisiana.

Application Procedure
The Office of Film & Television Development will provide a standard form which applicants will use to apply for sales and use tax credit. The application will contain, but not be limited to, detailed descriptions of the following:

1. Name of the production company;

2. Phone number of the production company;

3. Name of the producer;

4. Name and phone number of a company contact person;

5. List the first pre-production date through production date in Louisiana;

6. Louisiana production office address

7. Louisiana production office phone number;

8. Total budget of the project;

9. Total expenditures in Louisiana; and

10. Short synopsis of the project.

Submission and Review Procedure
Applicants must submit their completed application to the director of the Office of Film & Television Development. Submitted applications will be reviewed and evaluated by the director. Upon determination that an application meets the eligibility for this program, the director will then forward the application for approval by the secretary of the department.

Recapture of credits
A motion picture production company that fails to expend two hundred fifty thousand dollars within a consecutive twelve-month period will be liable for the sales and use taxes that would have been paid had the approval not been granted. The sales and use taxes shall be considered due as of the date that taxable expenditures were made.

Reporting Requirements
A completed expenditure/questionnaire report (form to be provided by the Commission).