Digital Interactive Media and Software (DIMS) Tax Credit
Provides Louisiana digital media and software producers with payroll and production tax credits for qualifying activity.
Louisiana's Digital Interactive Media and Software (DIMS) Tax Credit, administered by Louisiana Economic Development (LED), offers two simultaneous tax credits to producers of digital interactive media and software operating in Louisiana: a 25% credit on qualified in-state payroll and an 18% credit on qualified production expenditures. There is no minimum spend and no cap on either credit. The program survived the 2024–2025 Landry tax-reform special session intact, while several other LED incentives were sunset.
Eligible entities must be registered with the Louisiana Secretary of State, maintain a physical Louisiana presence with posted business hours, and employ at least one full-time Louisiana worker. Qualifying products include video games, web and mobile applications, consumer and business software, entertainment software, interactive devices, and embedded systems. Qualifying labor categories include project managers, engineers, programmers, game designers, and artists; customer service, sales, marketing, administrative, and manufacturing roles do not qualify. Eligible expenditures for the production credit include development equipment, allocated rent for development space, and development supplies; hosting, utilities, and travel are excluded.
Credits may be applied against state income tax liability, with overages refunded — or the applicant may elect an 85% cash rebate at any point during the year. Applications are submitted through the FastLane portal with a fee of 0.5% of the proposed benefit (ranging from $500 to $15,000) plus verification deposits. Applicants have six months after approval to begin qualifying expenditures. An independent Louisiana-licensed CPA must verify costs before final certification. Louisiana Department of Revenue (LDR) issues the final credit or rebate.
Louisiana tax credits of 25% on qualified in-state payroll and 18% on production expenditures for producers of digital interactive media and software.
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