Louisiana Enhances State Digital Media Tax Credits

Louisiana Governor Bobby Jindal has signed a bill into law that improves the state’s existing tax credits for the entertainment industry – which includes game developers. The addendum to the state’s Digital Media Tax Credit will soon offer game developers doing business in Louisiana benefits as a refundable credit rather than a transferable credit. This allows those that are eligible for it to receive a cash rebate if the credit amount ends up being more than the outstanding tax liability for the year. Of course, the law still gives game developers a 25 percent tax credit on software production in the state and a 35 percent credit for state payroll taxes devoted to software development.

Louisiana policy makers say that these tax credits have been "instrumental" in attracting large companies into the state. For example, EA recently announced plans for an expansion of its game testing facility on the LSU campus.

"Louisiana’s Digital Media Tax Credit is a strong asset to growing the industry and making the state a global competitor in video game development," Craig Hagen, senior director of government affairs for Electronic Arts, told Louisiana’s KATC. "We look forward to working with Louisianans in this exciting endeavor."

Source: Gamasutra

Tweet about this on TwitterShare on FacebookShare on Google+Share on RedditEmail this to someone

Leave a Reply