The Louisiana Department of Revenue has issued Revenue Information Bulletin (RIB) 12-017, addressing the Digital Interactive Media and Software Tax Credit.
Act 454 of the 2009 Legislative Session made significant changes to the digital interactive media tax credit program. After July 1, 2009, the digital interactive media credits can be used to offset Louisiana income and franchise taxes; prior to this date, the credits could only offset Louisiana income tax. Additionally, after July 1, 2009, productions are eligible for credits of 25% of base investment and an additional 10% credit for base investment amounts spent on payroll. The Act makes several changes to definitions for the credit which are technical in nature. The effective date of the Act is July 1, 2009.
Additionally, Act 415 of the 2011 Legislative Session made changes to the digital interactive media and software tax credit program. For expenditures incurred on or after January 1, 2012, the Act makes the credits refundable. In an alternative to the refundable credit, the Act allows the digital media or software company to make a one-time election to receive a rebate equal to 85% of the face value of the credit whenever the credits are certified. Act 415 also prohibits the stacking of other Louisiana Economic Development (LED) credits for expenditures claimed under the digital interactive media and software tax credit program.