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Incentives
Sound Recording Incentive Program
The Sound Recording Incentive Program, statutorily known as Sound Recording Investor Tax Credit, provides an 18% tax credit for sound recording projects made in the State of Louisiana. Louisiana also offers some of the world's finest talent and recording studios to complement the attractive financial benefits of recording in state. Sound recording investor tax credits are issued as rebates. The Sound Recording Investor Program provides:
18% Project Based Production Credit
for eligible production expenditures
Program is subject to a cap of $2.16 million per year. Projects are subject to a $100,000 cap, per year.
For applications to our Sound Recording program received on or after May 1, 2024, the guidelines and procedures below will now be effective. Please contact chris.stelly@la.gov with any questions.
Sound Recording Investor Tax Credit Guidelines
Sound Recording Production Agreed Upon Procedures
Application Process
Complete application form. In order for the application to be considered received, ALL information and application fee must be submitted.
If approved, LED/OEID issues Initial Certification.
Track production expenses.
Submit a cost report with a deposit for the expenditure verification report. Then, an independent CPA selected by LED/OEID will begin their review and submit an expenditure verification report to LED/OEID.
If approved, LED/OEID issues Final Certification for the amount of the tax credit.
Louisiana Department of Revenue issues a rebate check.
Program Statutes & Rules
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.
Eligibility Requirements
The program incentivizes sound recording, defined as a recording of music, poetry or spoken-word performance made in Louisiana and produced in Louisiana in whole or in part. A $25,000 minimum in expenditures is required, with a $10,000 minimum expenditure requirement for Louisiana residents.
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Qualifying sound recordings include:
- Recording, tracking and overdubbing of music and vocal performances
- Recording of film scores
- Recording of spoken word performance
- Recording of live musical performances
Eligible expenditures:
- Studio rental fees and associated fixed costs
- Artist and musician salaries directly related to a certified recording project
- Producer fees directly related to a certified recording project
- Mixing and mastering of a recording made in whole or in part in the State of Louisiana
- Instrument and equipment rental
- Hotel, airfare (when booked through a Louisiana travel agent), and catering expenditures directly related to a certified recording project
Non-eligible expenditures:
- Producer fees in excess of 20% of the entire project budget are considered non-qualifying
- Expenditures associated with related party transactions may be limited as detailed in cost report guidelines
- All costs associated with duplication, packaging, marketing and distribution are non-qualifying
Required Supporting Documents
Frequently Asked Questions
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How does this benefit my recording studio?
If you are a studio owner, you can market the tax credit as an incentive for talent to come to Louisiana or stay in Louisiana to record their album. They will get the tax credit, but you will get the business because the talent can get an up to 18% return on their investment.
What is the monetary value of the tax credit?
The tax credit is up to 18% of the base investment and is issued as a rebate. A rebate is a direct payment to the applicant from the Louisiana Department of Revenue. It is not necessary to establish taxable liability with Louisiana Department of Revenue to receive the rebate, but an applicant must have a Louisiana Tax ID in order to receive the rebate.
What is considered as base investment for the purposes of computing the tax credit?
Base investment is money spent in Louisiana that is directly related to the sound recording production project.
What does and does not qualify for the sound recording investor tax credit?
The only expenses that will qualify for the tax credit are those that are directly related to the production of a sound recording. For a production, qualifying expenses include, but are not limited to: travel (if purchased through a Louisiana travel agent), studio rental and fees, producer fee, composer fee, musicians' fees, and any other costs directly related to production. Non-qualifying expenses include, but are not limited to: distribution, marketing, promotion, advertising, expenses incurred but not paid, expenses paid to a business that is not located in the State of Louisiana, and any costs not directly related to the production.
What is a distribution plan?
A distribution plan will illustrate how an applicant plans to distribute a sound recording once it is finished. The distribution plan needs to be as detailed as possible. Will it go on sale at stores, over the Internet, through a distribution company, etc.?
What is a preliminary budget?
The preliminary budget should outline the anticipated sound recording production expenditures for the project.
What is the maximum tax credit amount my project can receive?
$100,000
Can this incentive be used in combination with other LED incentives?
LED has many business incentives, some of which may be combined with the sound recording investor tax credit. Claiming identical expenditures for more than one LED incentive program is prohibited.
I started spending money in Louisiana before I received an Initial Certification. Can I still claim what I have spent?
YES. As long as a company can claim their first expenditure on a project 12 months prior to the date their project is approved (initially certified) for the program.
What's the difference between LED, Office, OEID, and Louisiana Entertainment?
The Office of Entertainment Industry Development is a division of the Louisiana Department of Economic Development. For ease of reading, this website may commonly refer to these entities as the Office, OEID, Louisiana Entertainment or LED.
When will I know if my project qualifies?
As soon as we have had a chance to review and clear up any outstanding issues in the application (which we strive to complete as quickly as possible), we issue an Initial Certification that acknowledges a project's applicable expenditures based on those proposed in the application.
When do I receive my tax credit?
Tax credits are issued as rebates following a project's Final Certification.
Have other questions? We’re here to help.
Chris Stelly
Executive Director of Louisiana Entertainment
