Why use a broker for Louisiana tax credits?

There are endless reasons why companies choose to use a broker when applying for Louisiana state tax credits but none seem more relevant than this: FBT Film and Entertainment has consistently proven to companies across the state that they can not only provide their tax credits, provide them faster, but can even offer more than the state rate.

"Previously, without having a quality brokerage firm, we found the sale of tax credits to be very lengthy to complete and difficult to predict a turnaround. Having a quality brokerage firm that we could work with was really key to us being able to leverage the State's digital media incentives because businesses need some degree of certainty to invest in their resources into any process," commented a spokesperson at Carrollton Technology Partners in New Orleans.

 

How credit brokers benefits businesses

Carrollton Technology Partners is a Louisiana based media company who offers digital media, film, sound recording and live theater projects across the State of Louisiana. Carrollton recently took advantage of the digital media tax incentive programs available to Louisiana residents and contacted FBT Film and Entertainment to help secure their film tax credits.

FBT Film and Entertainment was able to help Carrollton reduce their costs by 35% by not only competing with the State offered 85% but by investing against the tax credits with no risk – a fantastic investment opportunity that was quickly snapped up by Carrollton.

Randall Nachmann of ATLOS Software recently reported similar results. “Lenny Alsfeld of FBT Investments assisted me with the purchase of my DIM tax credits and, in my opinion, did a fantastic job. It was literally a 2 day turn around, and completely hassle free,” said Nachmann.

 

 

Similar experiences were shared by Czarina Walker of InfiniEdge Software, Inc.: "We appreciate you Leonard!  You have NO IDEA how cumbersome this process was until we found you!"

 

 The changing role of Leonard Alsfeld and FBT Film

Leonard Alsfeld of FBT Film and Entertainment recently spoke out about the benefits of using a broker when applying for Louisiana tax credits. “It's created a really fluid market for films coming here, because now, instead of waiting until then end of the cycle, which could be six months after they finish principle photography, well now they get the ability to borrow against their bank source at just a slight discount of the States 85% because they know the State is going to pay it. So it creates liquidity” says Alsfeld.

Tax credits really do feel like the future of the arts in Louisiana, where films, media, music and software companies are profiting from state tax credits every day.

 

How can you make money using tax credits?

Quite simply, if a film earns $100 in tax credits, it can spend the $100 dollar-for-dollar against its Louisiana state income tax liability. There are, however, further beneficial options available to media companies when spending tax credits.

“Most film projects go the route of State re-fund because it's a guaranteed rate,” advises Leonard Alsfeld. Furthermore, with the 85% return, studios “will actually bank that because of the State's guarantee and then borrow against it from their lending source,” explained Alsfeld.

Important program notes:

• The film can sell the tax credits to the State for $85.
• The film can turn to FBT Film and Entertainment at an agreed upon rate.
• FBT Film and Entertainment then write an $85 check to the film and handles the paperwork.

"This is simple," says Alsfeld. "You write a check to your broker, and you get a State-issued, guaranteed certificate with a ten year life."

 

How FBT Film and Entertainment can help you

"In many cases, we've become the advocate of to help them (local companies) learn," said Alsfeld. "They (digital media firms) need great counseling through-out the whole process." Benefits of working with a tax credit broker like FBT Film include:

• Get your tax credits funded or paid out in as little as 48 hours.
• Choose from a variety of lending options which are currently available to Louisiana residents and have proven time and time again that you are more likely to walk away with only more cash than applying on your own; but in breakneck speed.

Notes: Some of the quotes and information in this article were originally collected and presented by Skip Descant of The Advocate in a recent article. Click here to read the article by The Advocate.