La. Admin. Code tit. 61, § I-6765 - Definitions

Current through Register Vol. 48, No. 3, March 20, 2022

A. Terms not otherwise defined in this Chapter shall have the same meaning given to them in R.S. 47:6022, unless the context clearly requires otherwise.
B. In this Chapter, the following terms shall have the meanings provided herein, unless the context clearly indicates otherwise.

3D Geometry-electronic media representations, three dimensional representations of geometric data for the purposes of rendering 2D image and performing calculations.

Animated Images-electronic media representation of images that comprise a series of chronological fixed images.

Base Investment-the actual funds expended in Louisiana by a state-certified production as production-related costs for design or development of digital interactive media, including costs for payroll and component parts.

Commercial Distribution-distribution of digital content from producer to consumer. Examples may include but not be limited to physical distribution of DVDs from a store front retailer or digital distribution of content, streamed or downloaded via the internet.

Commercial Release-the date when the product is first commercially available for sale to or use by the general public, typically after beta testing or similar quality control testing by a limited number of users.

Company-an entity authorized to do business in the state of Louisiana, engaged in the business of producing digital interactive media as defined in this Section. Company shall not mean or include any company owned, affiliated, or controlled, in whole or in part, by any company or person which is in default on a loan made by the state or a loan guaranteed by the state, nor with any company or person who has ever declared bankruptcy under which an obligation of the company or person to pay or repay public funds or monies was discharged as part of such bankruptcy.

Component Parts-all elements that are integral to the functioning or development of such products and platforms. Some examples may be, but are not limited to: software, computer code, image files, music files, audio files, scripts and plays, concept mock-ups, software tools, and testing procedures. Shall also include, but not be limited to: computer servers, workstations, server racks, hard drives, optical drives, monitors, keyboards, integrated video and audio equipment, networking routers, switches, network cabling, and any other computer-related hardware necessary to create or operate a digital interactive media product or platform. Create or operate refers to the creation or operation of the digital platform or product and does not refer to the creation or operation of the parent company

Department-Department of Economic Development.

Digital Content-intellectual property that is published or distributed via a digital media platform or product, including but not limited to software, computer code, image files, music files, audio files, video files, text, data, and streaming video.

Digital Interactive Media-products or platforms that are:

a. intended for commercial production, use or distribution;
b. contain at least two of the following types of data: text, sound, fixed images, video, or 3D geometry; and
c. that have all of the following three characteristics:
i. digital-a system that uses discrete (discontinuous) values ordinarily symbolized numerically to represent information for input, processing, transmission and storage. A digital system would be contrasted with an analog system which uses a continuous range of values to represent information. The term digital includes, but is not limited to information input, processed, transmitted and stored via the internet;
ii. interactive-a digital media system for inputting, processing, transmitting or storing information or data in which users of the system are able to respond to the digital media system by inputting, transmitting, processing or storing information or data in response to the information or data provided to them through the digital media system. (Digital media system means communication delivered via electronic energy where the information stored, transmitted, or received is in digital form);
iii. media-tools used to store, transmit, distribute and deliver information and data. It includes methods and mechanisms for information distribution through, but not limited to distributed networks, such as the internet, and through compact disc, CD-ROM, various types of DVD, and other removable storage drives and devices;
d. digital interactive media may include, but not be limited to:
i. video or interactive games;
ii. simulation software;
iii. interactive educational or training products;
iv. internet sites designed and developed as social media;
v. software applications that provide connectivity; and communications between mobile devices and digital interactive media web platforms; and
vi. technology designed to stream live or prerecorded video content over the internet to large simultaneous audiences;
e. digital interactive media shall not include:
i. software development primarily designed and developed for institutional, private or internal purposes;
ii. largely static internet sites designed to provide information about a person, business, or firm;
iii. products regulated under the Louisiana Gaming Control Law or the Indian Gaming Regulatory Act; or
iv. largely static retail websites. When determining eligibility, LED will consider amount of proposed programming work versus use of pre-built templates and any other factors it deems most appropriate under the circumstances.

Digital Media Products or Platforms-the basic infrastructure that allows various media file types to coexist in an integrated, customized content loop:

a. product-any audiovisual work embodied in software or other digital electronic form that are only capable of being used with a platform. Examples may include, but not be limited to software games;
b. platform-a software architecture that serves as a foundation or base upon which other products, processes or technologies are developed. Software platforms should provide base functionality and communicate back and forth with other software products.

Director-the director of Digital Media, who is the designee of the secretary of the Department of Economic Development.

Electronic Media-tools used to store, transmit, and receive digitized information that utilizes electronics or electromechanical energy to access the content.

Expended in Louisiana-an expenditure to lease immovable property located within the state; and expenditure as compensation for services performed in the state; or an expenditure to purchase or lease tangible personal property within the state where the transaction is subject to the state sales or lease tax provisions of Title 47 of the Revised Statutes of 1950. A transaction that is subject to the state sales or lease tax provisions of Title 47 of the Revised Statutes of 1950 shall include transactions which are also subject to a statutory exclusion or exemption.

Expenditure-actual payment of cash or cash equivalent for goods or services, as evidenced by an invoice, receipt or other such document. Cash or cash equivalent transactions may include but not be limited to: commercial or bank financed loans, actual physical transfer of coins and banknotes, other forms of transmission that will turn into cash very quickly, including written checks, credit cards, bank debit cards, and bank wire transfers. However, the receipt of a promissory note, the creation of an account receivable, or the sending of a customer invoice are not, by themselves, evidence of an expenditure. Owner-financed transactions will only qualify as an expenditure when actual cash or cash equivalent payments are made.

Fixed Images-electronic media representation in two dimensions that are static.

Indirect Costs-not direct production related costs. Costs of operation that are not directly associated with a specific production, such as clerical salaries and general administrative costs.

Interpersonal Communication Services-websites and other digital media that are primarily for the purposes of exchanging personal or business information, photos or news. Examples of this may be, but are not limited to: those listed in R.S. 47:6022(C)(4), web logs, product websites, social networking websites, video conferencing, internet telephony and instant messaging platforms.

Office-Office of Entertainment Industry Development.

Payroll-includes all salary, wages and other compensation sourced or apportioned to Louisiana, and federal payroll taxes such as the employers portion of FICA/FUTA and workers compensation insurance costs to the extent purchased from a source within the state. Fringe Benefits including health care costs, 401K contributions, dental plans, and life insurance will be considered if these costs are paid by the employer and costs are apportioned to services performed in Louisiana on a certified project.

Person-a natural person, corporation, partnership, limited partnership, limited liability company, joint venture, trust, estate or association.

Production Expenses-preproduction and production expenditures in the state directly relating to and proportionate with work performed in Louisiana on a state-certified production. In qualifying submitted expenditures as production-related costs, LED may determine whether such expenditures represent legitimate expenditures for the actual cost of related goods or services, having economic substance and a business purpose related to the certified production, and not constructive dividends, self-dealing, inflated prices or similar transactions entered into for the purpose of inflating the amount of tax credits earned rather than for the benefit of the production. See §1668 for detailed illustrative examples of eligible and ineligible expenditures commonly associated with digital interactive media projects.

Resident or Resident of Louisiana-a natural person and, for the purposes of determining eligibility for the tax incentives provided by this section, any person domiciled in the state of Louisiana and any other person who maintains a permanent place of abode within the state and spends in the aggregate more than six months of each year within the state. Payments made to employees with an H-1B temporary visa or independent contractors issued 1099 tax forms, shall not be considered payments to Louisiana residents for the purposes of calculating the additional Louisiana resident payroll credit.

Secretary-secretary of the Department of Economic Development.

Source within the State-a physical facility in Louisiana, operating with posted business hours and employing at least one full-time equivalent employee.

State-Certified Production-a digital interactive media production, or a component part thereof, approved by the office.

Tax Credit-digital interactive media and software development tax credit.

Transferee-an individual or entity that receives a transfer of investor tax credits.

Transferor-an individual or entity that makes a transfer of an investor tax credit.

Notes

La. Admin. Code tit. 61, § I-6765
Promulgated by the Department of Economic Development, Office of Business Development, Office of Entertainment Industry Development, LR 35:633 (April 2009), amended LR 36:1981 (September 2010), LR 39:1010 (April 2013), repromulgated by the Department of Economic Development, Office of Business Development, LR 45886 (7/1/2019), Amended LR 48407 (3/1/2022).
AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6022.

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