Digital Interactive Media and Software Development Incentive

Overview

Louisiana’s Digital Interactive Media and Software Development refundable tax credit — the strongest of its kind in the nation — is helping innovative digital media and software development companies of all sizes gain a competitive edge.

  • Provides a 25.2% tax credit on qualified payroll for in-state labor and 18% for qualified production expenses for expenditures through June 30, 2018, and a 35% tax credit on qualified payroll for in-state labor and 25% for qualified production expenses for expenditures on or after July 1, 2018.
  • No cap and no minimum requirement.
  • The tax credit is available for a refund of 100% of its value claimed on Louisiana state tax return OR certified applicants can receive 85% of the value earned as a rebate any time during the year.

Eligibility

The incentive is open to all companies producing digital interactive media products or platforms in Louisiana. Certain exclusions apply, such as static internet websites or software primarily designed for internal use, which are non-qualifying. Only work physically performed in Louisiana and only direct development equipment purchased through Louisiana businesses qualifies for the incentive.

Qualifying development products include:

  • Digital Media and Games
  • Web-based and Mobile Applications
  • Consumer Software
  • Entertainment Software
  • Business and Enterprise Software
  • Interactive Devices and Consoles
  • Embedded Systems

What qualifies as a Louisiana business?

  • Registered with the Secretary of State
  • Physically located in Louisiana
  • Posted hours of business
  • At least one full-time employee

*Note: Eligible expenditures may start as early as, or no later than, six months from initial certification date (acceptance into the program) — R.S. 47:6022.

Eligible Labor Expenses

  • Project Managers
  • Quality Assurance
  • Engineers
  • Programmers
  • Game Designers
  • Industrial Designers
  • Composers
  • Artists
  • Management R&D/Engineering

Non-Eligible Labor Expenses

  • Customer Service Staff
  • Business Development/Sales Staff
  • Assistants/Secretaries
  • Marketing/PR Staff
  • Accounting/Financial Staff
  • Clerical Staff
  • Installation Staff
  • Janitorial/Maintenance Staff
  • Human Resources
  • Miscellaneous Administrative/Payroll
  • Manufacturing Staff

Eligible Production Expenses

  • Production equipment directly related to development (Hardware/Software)
  • Allocated rent for where direct development occurs
  • Office supplies (related to development)
  • Licenses/permits for development

Non-Eligible Production Expenses

  • Furniture and fixtures
  • Relocation expenditures
  • Domain license fees
  • Hosting
  • Payroll processing fees
  • Indirect production equipment (Hardware/Software)
  • Entertainment expenditures
  • Communications (telephone, cell phone, etc.)
  • Utilities
  • State/local taxes
  • Advertisements
  • General insurance for business operations
  • Interest paid on loans
  • Auto rental/mileage
  • Parking/fare expenditures
  • Travel expenditures
  • Internet
  • Food
  • Recruiting/hiring expenditures
  • Manufacturing expenditures
  • Lodging/housing of staff
  • Finance fees

Program Statutes & Rules: 

All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register.

How to Apply

This download includes the application, helpful tips and instructions on completing the form.

Download an application or apply online using FastLane and submit application fee and verification report fee.

For more information on the digital media industry, contact the program administrator:

Thomas Tyler
Director, Digital Interactive Media
225.342.5403
thomas.tyler@la.gov