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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.

Sound Recording Incentive Program Tax Credits

Program is subject to a cap of $2.16 million per year. Projects are subject to a $100,000 cap, per year.

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18% Project Based Production Credit

for eligible production expenditures

18% Project Based Production Credit

for eligible production expenditures

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.
  • Recording, tracking and overdubbing of music and vocal performances
  • Recording of film scores
  • Recording of spoken word performance
  • Recording of live musical performances
  • 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
  • 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

Application Process

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1

Complete application form. In order for the application to be considered received, ALL information and application fee must be submitted.

2

If approved, LED/OEID issues Initial Certification.

3

Track production expenses.

4

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.

5

If approved, LED/OEID issues Final Certification for the amount of the tax credit.

6

Louisiana Department of Revenue issues a rebate check.

1

Complete application form. In order for the application to be considered received, ALL information and application fee must be submitted.

2

If approved, LED/OEID issues Initial Certification.

3

Track production expenses.

4

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.

5

If approved, LED/OEID issues Final Certification for the amount of the tax credit.

6

Louisiana Department of Revenue issues a rebate check.

Next Steps

Complete and submit the application and fee in its entirety to OEID. Projects under $10,000 are not subject to an application fee.

Once the application is complete, the project is evaluated for eligibility. Applicants to the sound recording production program must provide detailed accounting and verification of expenditures relating to All-In Producer Deals. Please refer to the producer fee policy notice.

If OEID determines that the project meets eligibility requirements of the statute and program rules, OEID issues an Initial Certification for that project or QMC.

The applicant signs the Initial Certification letter and returns it to OEID.

Prior to the issuance of the final certification letter, an expenditure verification report deposit shall be submitted accordingly to the following schedule.

Production Size.                              Deposit Amount
$10,000 – $24,999.99                    $750
$25,000 – $49,999.99                   $1,500
$50,000 – $99,999.99                   $2,500
$100,000 – Above                         $3,750

Upon project completion, the applicant must submit to OEID a cost report as well as a deposit for the expenditure verification report in accordance with the chart in the previous section.

*Please note that this is just a deposit and if the CPA fees exceed this amount, they will provide OEID with an estimated amount to complete the review and OEID may collect additional funds to cover the cost. Any amount remaining will be refunded to the applicant.

Upon receiving the expenditure verification report, OEID will review and may request additional supporting documentation.

After all supporting documentation is received and approved, OEID issues a Final Certification letter (or written denial), confirming the certified amount that was spent in state and the certified amount of the tax credit the applicant will receive as a rebate.

Upon Final Certification, OEID submits the Final Certification letter to the Louisiana Department of Revenue (LDR) on behalf of the investor who earned the tax credit.

LDR may require the investor to submit additional information.

LDR issues tax credit to investor as a rebate.

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