September 13, 2016
Paying by Sept 15, 2016 may avoid penalties and interest on
Motion Picture Investor Credit Due to Credit Cap
RIB 16-051 Liability for Application of Penalties and Interest for Taxpayers Denied a Motion Picture Investor Credit Due to Credit Cap Restrictions (note: includes taxpayers who have not yet filed a 2015 return claiming the credits).
Excerpts from RIB16-051 – Read the full RIB for the details.
On July 14, 2016 the Department of Revenue announced that the entire credit cap allotment of $180 million dollars for Fiscal Year 2016 -2017 and the carryforward amount from Fiscal Year 2015-2016 had been exceeded, leaving no remaining funds available under the cap to satisfy any additional claims or transfers to the state (buy-backs) for the duration of the Fiscal Year 2016-2017.
For taxpayers who claimed a motion picture investor credit on a return filed on or before July 14, 2016 and are subsequently denied credit as a result of the credit cap being reached after the original due date of the tax, currently May 15 for individual income calendar year filers and April 15 for corporate income calendar year filers, payment of any tax due must be submitted to the Department of Revenue by September 15, 2016 in order to avoid liability for the application of penalties and interest from the original due date of the tax. The September 15, 2016 date for the payment of tax on returns filed on or before July 14, 2016 only applies when: (1) the credit is claimed on a return filed on or before July 14, 2016; (2) the denial of the motion picture investor credit was due to the above-mentioned credit cap restrictions; and (3) the denial occurred after the original due date of the tax.
For taxpayers who purchased motion picture investor credits on or before July 14, 2016 and have not yet filed a return claiming the credits, if the original due date of the 2015 calendar or fiscal year return, without regard to extensions was on or before July 14, 2016, the payment of any tax due for the 2015 calendar or fiscal year must be submitted to the Department of Revenue by September 15, 2016 in order to avoid liability for the application of penalties and interest from the original due date of the tax.
See RIB 15-033 for further details.
Motion Picture Investor and Infrastructure Tax Credit Cap – estimated amount of cap available here.
If the practitioner’s software does not provide an option to create a payment voucher, this can be done on the LDR website via the online payment option. Once the required information is entered the option will be provided to print. This paper voucher should be submitted with the check to ensure proper credit.
Please note that the date a RIB is issued can be earlier than the actual date it was posted to the LDR website.
If you do not receive a timely response from Louisiana Department of Revenue Tax Practitioner Inquiry emails or have any questions regarding this release, please contact Linda Babin.