La. Admin. Code tit. 61 § I-1624

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-1624 - Definitions

A. Terms not otherwise defined in this sub-chapter shall have the same meaning given to them in R.S. 47:6007, unless the context clearly requires otherwise.

B. In this Sub-chapter, the following terms shall have the meanings provided herein, unless the context clearly indicates otherwise.

Affiliate-

a. any business entity that is:

i. controlled by the QEC;

ii. a controlling owner of the QEC; or

iii. controlled by an entity described in Subparagraph a or b;

b. control, for purposes of this definition, means owning either directly or indirectly through control of or by another business entity:

i. a majority of the voting stock or other voting interest of such business entity or the QEC; or

ii. stock or other interest whose value is a majority of the total value of such business entity or the QEC;

c. a controlled or controlling business entity will be deemed a non-affiliate (not an affiliate) if the department determines that neither the QEC nor any of its controlling owners exercise authority over the management, business policies and operations of the business entity.

Approved Rehire Employees-a former employee who was previously on the payroll of the QEC, or QEC parent entity, subsidiary, or affiliate in Louisiana, but has been off such payroll for a period of at least four months, may be considered a new job if rehired into a position that is not part of the baseline jobs. When determining New Job qualification, at the discretion of LED, LED shall consider all relevant factors including but not limited to; ES4s, W2s and QEC re-hiring practices, and the intent of the QEC payroll tax credit program to permanently locate new or expand existing operations in Louisiana.

Baseline Jobs-the number of employees of a QEC, including affiliates, working an average of 30 hours per week, during the payroll period including the twelfth of the month, in the month completed prior to the contract effective date, as verified on the applicable ES-4 form or equivalent filing form. Baseline jobs must be maintained in any year for which the QEC requests tax credits.

Baseline Job Payroll-W-2, Box 1 wages for baseline jobs.

Contract Effective Date-the date the application and application fee are received by LED, or a later contract effective date as agreed to between the parties. The contract effective date cannot be earlier than the date the application and application fee are received by LED.

Department-Louisiana Department of Economic Development, also known as "LED"

LDR-Louisiana Department of Revenue

Minimum Payroll Threshold-a minimum QEC Payroll of $45,000 per New Job, or for a partial year employee, shall mean $3,750 per month for each month from the date of initial employment.

New Jobs-

a. full-time employment in Louisiana, working an average of 30 hours or more per week;

b. filled by Louisiana residents;

c. at the project site; and

d. with the exception of Approved Rehire Employees, who were not previously on the QECs Louisiana payroll, nor previously on the payroll of the QECs parent entity, subsidiary, or affiliate in Louisiana, or previously on the payroll of any business whose physical location and employees are substantially the same as those of the QEC in Louisiana, as confirmed by an independent CPA in an annual expenditure verification report submitted to LED for review, and approved by the secretary. New Jobs shall not mean:

i. baseline jobs existing one month prior to contract effective date; or

ii. jobs located at facilities other than the approved Project Site.

Office-Office of Entertainment Industry Development, also known as "OEID"

Program Issuance Cap-for applications submitted on or after July 1, 2017, the office may issue no more than $150,000,000 in tax credits ("total cap") in any fiscal year, with $7,500,000 reserved for qualified entertainment companies ("QEC cap"), $7,500,000 reserved for Louisiana screenplay productions ("LA screenplay cap"), $15,000,000 reserved for independent film productions ("independent film cap"), with the remaining $120,000,000 available for general allocation to any state certified production ("general cap").

Project Site-the facility name and street address, as stated in the QEC contract.

QEC Payroll-W-2, Box 1 wages. For a partial year employee, the minimum payroll threshold may be met if the payroll for the partial year employee meets or exceeds $3,750.00 per month for each month from the date of initial employment.

QEC Payroll Tax Credits-a tax credit for expenditures related to QEC payroll, authorized by the Motion Picture Production Tax Credit Program, R.S. 47:6007.

Resident-a natural person who is required to file a Louisiana resident individual income tax return, as verified by independent CPAs on the annual verification report.

Secretary-Secretary of the Department of Economic Development

Total Jobs-the number of baseline jobs plus new jobs.

Total Payroll-the amount of baseline jobs payroll plus new jobs payroll.

La. Admin. Code tit. 61, § I-1624

Promulgated by the Department of Economic Development, Office of Entertainment Industry Development LR 441992 (11/1/2018).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6007.