Music Job Creation Program

Music Job Creation Program Tax Credit

*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.

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10% Credit

for each new job whose QMC payroll is equal to or greater than $35,000 per year, up to $66,000 per year

15% Credit

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

10% Credit

for each new job whose QMC payroll is equal to or greater than $35,000 per year, up to $66,000 per year

15% Credit

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

Eligibility Requirements

The Secretary of the Department of Economic Development may consider program applicants meeting the following criteria:

Eligibility Criteria

Business must be engaged directly or indirectly in the production, distribution and promotion of music. (For example, the business may be a music publisher, sound recording studio, artist management or other music industry related business)
Entity must be authorized to do business in the state of Louisiana and permanently locate or expand existing operations in Louisiana

Job Requirements

Create a minimum of three new direct jobs that meet or exceed a salary of $35,000 per year per person
These jobs must be full time, (full-time employees — working an average of 30 hours or greater per week)
Filled by residents of the state at the approved QMC’s location in Louisiana
Can NOT have existed previously on the QMC’s payroll in Louisiana, nor previously on the payroll of the QMC’s 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 QMC in Louisiana

The Process

1

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.

2

OEID / LED reviews application.

3

If approved, OEID/LED enters into a contract with applicant.

4

When W2s are issued, applicant requests final certification of credits from OEID.

5

CPA performs an audit and provides an expenditure verification report to OEID.

6

OEID reviews and if approved, issues a final certification letter.

1

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.

2

OEID / LED reviews application.

3

If approved, OEID/LED enters into a contract with applicant.

4

When W2s are issued, applicant requests final certification of credits from OEID.

5

CPA performs an audit and provides an expenditure verification report to OEID.

6

OEID reviews and if approved, issues a final certification letter.

Next Steps

Application Review and Contract

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. 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.

Issuance of Credits

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 review by the assigned CPA. The QMC shall submit a cost report along with a deposit of $7,500 to cover the cost of the expenditure verification report. The expenditure verification report must be prepared by an independent CPA licensed in Louisiana, assigned by OEID.

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 (or written denial) approving the qualifying expenditures and certifying the tax credits.

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