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The Music Job Creation Program provides a tax credit on annual W2 wages to music industry related companies (known as a Qualified Music Company or “QMC”) that create well-paid jobs for Louisiana residents.
for each new job whose QMC payroll is equal to or greater than $35,000 per year, up to $66,000 per year
for each new job whose QMC payroll is equal to or greater than $66,000 per year, but no greater than $200,000 per year
*La. R.S. 47:6023, better known as the Louisiana Sound Recording Production Program, also provides a QMC payroll tax credit on annual W2 wages for approved music industry companies, and this incentive is commonly referred to here as the Music Job Creation Program.
All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register.
Submit application and fees (fees will be calculated upon submission of the application.) An application isn't considered received until the applicant submits a deposit.
OEID / LED reviews application.
If approved, OEID/LED enters into a contract with applicant.
When W2s are issued, applicant requests final certification of credits from OEID.
CPA performs an audit and provides an expenditure verification report to OEID.
OEID reviews and if approved, issues a final certification letter.
All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register. For rules, go to Part 1, Chapter 65.
The Secretary of the Department of Economic Development may consider program applicants meeting the following criteria:
1. Applicant completes and submits the online application with supporting documents and fees to the Office of Entertainment Industry Development (OEID).
2. After application review and consideration of all discretionary factors, OEID and the Secretary of LED may execute a contract with an applicant for a period of up to five years, providing the terms and conditions for its participation. The contract shall set forth an estimate of jobs and payroll per calendar year which will be tentatively allocated to the QMC for annual cap computation purposes. A five-year renewal contract may be authorized if the applicant has complied with all of the terms of the contract.
3. Prior to entering into a contract, the applicant shall submit a deposit for the audit report fee of $3,750. The applicant will be assessed the department's actual cost for the report each year. The maximum fee for the report shall be $7,500 per year. OEID shall directly assign a CPA to prepare an expenditure verification report on an applicant’s payroll expenditures. The applicant shall make all records related to the tax credit application available to OEID and the CPA.
4. The applicant executes the contract and returns it to OEID.
1. Once the first year covered under the QMC’s contract is finished and W2s issued by the QMC, the QMC shall notify OEID that it is ready to proceed to audit. The audit must be performed by an independent CPA licensed in Louisiana, assigned by OEID The audit must conform to GAAP/GAAS. A final certification letter (issuance of credits) or denial will be issued by the department within 120 days of receipt of a complete audit package.
2. The QMC shall be responsible to provide any supporting or requested documentation to the CPA.
3. OEID may require additional support and/or verification for certain expenditures.
4. After all supporting documentation is received and reviewed, OEID and LED will issue a "Final Certification" letter approving the qualifying expenditures and certifying the tax credits.
5. The credits can now be used to reduce up to 50% of the applicant’s Louisiana income tax liability. Any excess can be carried forward for up to five years and shall be applied against the subsequent income tax liability of the applicant.
Executive Director of Louisiana Entertainment