(The Center Square) — In a bid to boost Louisiana's music industry and retain homegrown talent, lawmakers have advanced a bill to overhaul and extend the state's underutilized sound recording investor tax credit program.
The bill passed committee without objection.
Currently, the tax credit is set to sunset in July, meaning it would no longer accept any applications.
Authored by Rep. Paula Davis, R-Baton Rouge, House Bill 653 would shift the program from Louisiana Economic Development to the Department of Culture, Recreation and Tourism and extend the application window through June 2030.
Despite having a cap of approximately $2.1 million, the program saw only $67,000 in claims last year − a sign, Davis said, that the credit needed retooling rather than abandonment. She was joined at the witness table by former Representative and Speaker of the House Tanner Magee in support.
"This is about building a cultural economy," Davis told the committee. "We have some of the best musical talent in the country, and we need to create the infrastructure that lets them thrive right here instead of leaving for Nashville, Atlanta or Austin."
Were the bill to pass, the project-based production credit would rise from 18% to 25% of the base investment. The minimum investment threshold for eligibility would drop from $25,000 to $10,000and even further to $5,000 for Louisiana resident investors working with Louisiana-based copyrighted projects.
Payroll credits would also increase by 5% in each income bracket.
The requirement for a certified public accountant to review expenditures would become optional, potentially reducing administrative costs for smaller productions.
The bill also mandates biennial reporting to legislative committees beginning in 2027 and gives CRT authority to enact emergency rules to jumpstart the revamped program. If enacted, the law would apply to taxable periods starting January 1, 2025, and would take effect upon the governor's signature.
"What do Elvis Presley and Hank Williams Sr. have in common? They made their debut in Shreveport, Louisiana," Magee told the committee.
The measure received bipartisan support in committee and now heads to the full House for consideration.
