The rates LPC pays for tax credits are affected by many variables, the most significant of which is the relationship of supply to demand. If, at any given time, demand among Louisiana taxpayers is high, rates paid to producers move up accordingly.
Rates are also affected by timing considerations. For example, taxpayers only buy tax credits close to tax time. This, coupled with the fact that credits earned in one year can't be carried back to offset prior years' tax liability, means that credits must sometimes be warehoused for long periods of time. Rates for credits that must be held in inventory for long periods are generally lower because of the interest carry incurred by LPC in connection therewith.
In general, studios will receive higher rates than independents, as repeat business with studios is more likely and risks are lower.
LPC will sometimes pay a higher rate per tax credit if the producer grants screen credits and other forms of non-monetary consideration.
To obtain a free rate quote, please contact us.
