WASHINGTON DC (Hypebot) – It's no secret that the economy is struggling just about everywhere and that governments at all levels are attempting to do something about it. At least two states, Michigan and Louisiana, have extended their efforts to include musicians and the music industry by offering tax credits.
A little known clause in a Michigan law designed to attract filmmakers to the state extends 42% tax credits to those producing records within its borders. But these credits don't apply to every project. The minimum which must be spent for the project to be eligible is $50,000. That's far below most indie projects and some are calling for the threshold to be lowered. Others are reportedly going to wrap video production into the budget to reach the needed total.
Recording budgets in Louisiana can be much smaller to qualify for that state's giveback, but the tax credit is smaller as well. Projects in Louisiana, which is being actively promoted by the sates Office of Entertainment Industry Development, can total as little as $15,000 which will return a credit of 15 – 25%.