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Monday, May 27, 2013

Why It's Worth Recording In Louisiana

Singer at mic image
File this in the "why don't other States do this?" bin, but Louisiana actually has a tax credit program that provides a rebate for those who record in great state. The Sound Recording Investor Tax Credit Initiative was created in 2005 to promote music in the state and provides a 25% rebate on eligible expenses on projects that spend at least $15,000 in recording costs.

You'd think that a program like this might be restrictive in what it considers a "recording cost," but it not only covers studio, producer and session musician fees, but in some cases even travel for out-of-state-musicians. And all kinds of recording besides music in the studio are covered as well, including film scores, spoken word performances like audio books, and even live recording.

There are some restrictions to the program however, but a lot of these are in place to make sure that the system isn't gamed. Expenses not included are recording on projects that didn't originate in Louisiana, producer fees in excess of 20% of the project total, excessive equipment rental fees, and duplication and marketing costs. Mixing and master costs also don't qualify unless the recording was initiated in the state as well.

While artists like R.E.M, the Yeah Yeah Yeahs and Trombone Shorty have benefited from the program, it does max out once it hits a ceiling of $3million per year, and there's speculation that the new legislature may decide to decrease that amount. Also, it can take anywhere from 5 to 8 months to receive any rebate from the program, so the project still has to be fully funded upfront.

Still, it's a great idea that I wish more states initiated. The biggest question I have is, why am I hearing about this only now?

Here's more about The Sound Recording Investor Tax Credit Initiative.

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1 comment:

Tommy Kib(odeaux) said...

I think you're only hearing about it now because people were sort of keeping it hush because of the total cap. Dockside Studios has probably been as busy as they've ever been and I think this has something to do with it.

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