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House panel advances bill to extend, move and expand Louisiana sound-recording tax credit
Summary
The House Ways and Means Committee voted to report House Bill 653 with amendments that extend the sound recording investor tax credit, move administration of the program from Louisiana Economic Development to the Office of Cultural Development in the Lieutenant Governor’s office, and increase credit rates and lower qualification thresholds.
House Bill 653, sponsored by Representative Davis, was reported with amendments after the House Committee on Ways and Means agreed to extend the state’s sound recording investor tax credit program and move administration of the program from Louisiana Economic Development (LED) to the Office of Cultural Development in the Lieutenant Governor’s Office.
The bill removes the current sunset, transfers program administration to the lieutenant governor’s cultural office, and—per the adopted amendment set—increases several credit percentages and lowers investment thresholds. The amendment set (coded 2560) raises the project-based production credit from 18% to 25% of base investment and reduces the base-investment threshold from $25,000 to $10,000. It also raises a payroll-related credit from 10% to 15% for qualifying music company payroll and raises a tier-2 new-jobs payroll credit from 15% to 20%.
The sponsor, Representative Davis, told the committee the program ‘‘sunset[s] in July 2025’’ and argued that moving the program to the lieutenant governor’s office would better align administration with cultural promotion and industry development. Committee staff (Mister Murray) described the amendment package as five pages with eight changes and summarized the changes to credit amounts and the program transfer. Citizen Tanner McGee (who identified himself as founder of Louisiana Music Partners) and Reed Watson (board of governors, Recording Academy) offered public support, saying Louisiana has an existing music ecosystem the bill would strengthen. Reed Watson provided figures estimating the state music industry contributes $1.4 billion to Louisiana’s GDP and employs over 30,000 people.
Committee members asked whether the bill increased the program cap; Representative Davis replied it would not change the existing cap (noted in committee as about $2.1 million), only the percentage credits available to qualifying applicants. Committee discussion highlighted that last year only about $67,000 of the program cap was claimed.
After Representative Willard offered an amendment and it was adopted without recorded objection, Representative Willard moved the bill with amendments to be reported. With no objection heard, the committee reported HB 653 with amendments.
The bill now advances in the legislative process with the program moved to the lieutenant governor’s cultural office and higher credit rates available under the amended language.
