4 hours ago
3
In a sigh of relief to local film communities, Louisiana will not eliminate its tax credit for filming after the state’s Congress voted to lower the current cap instead of eliminate it.
The state will now allot just $125 million in tax credits to film and TV production, down $25 million from its prior level of $150 million. The Senate nearly unanimously voted to lower the cap on Friday, November 22 ahead of the current session of Congress ending next week, and the House, which had previously voted to eliminate the tax-credit program entirely, approved the new bill in a wide margin.
Landry had initially called for the film tax credit to be eliminated completely as part of sweeping tax reform in the state, but tax reforms will now move forward with the filming credit still intact.
Had the tax credit been eliminated, it would’ve been sunsetted by June 30. It would have been a blow to the local film hub in Louisiana, the first state in the country to set up a tax credit for film production back in 1992.
Speaking with IndieWire after the vote, Film Louisiana president Jason Waggenspack said the “film industry did their part” and were willing to reduce the budget to help the state’s other economic goals but continue to support the 10,000 jobs the film industry brings to the state.
“We went to the table and gave up a little bit of money to allow for them to figure out their budget woes,” Waggenspack said. “But we do feel that we can significantly increase, if not improve, this program once we start to see more bigger business coming to Louisiana.”
Waggenspack said the benefits the film industry provides speak for themselves, and he cited a 2023 economic survey showing that for every $1 offered in tax credits, $6.32 goes back into the local economy. He also said a database of casting information estimated that nearly 90,000 people in Louisiana are registered as background actors and are looking for work in the film industry.
“All of those numbers obviously just become a proof-positive in the eyes of legislative bodies. And once they actually get to a film set and see the beehive of activity, it just is a no brainer,” he said. “This small haircut for us to do our part here in the state is going to be helpful politically and obviously economically. But we do feel like we’re still one of the strongest programs in the United States.”
Louisiana’s tax credit is far from the level that some other states have established in recent years, and it has basically halved now from its 2013 height of $260 million. California has a $330 million tax credit that Gavin Newsom wants to more than double to $750 million, while Georgia has no cap on its tax incentives and offers $1 billion in incentives each year.
Katie Pryor, the executive director of the Baton Rouge Film Commission, told IndieWire the tax credit staying in place was a “relief,” but also acknowledged that Governor Landry was not specifically targeting the film industry but the tax system more broadly. She saw it as a silver lining for other state governments looking to make changes that, even amid all the tax reform, the film tax credit is remaining intact.
She also acknowledged that the downturn in production is something that’s happening nationwide, not just on a state level.
“Business has been moving out of the country, and so I think it has affected Louisiana, but no more so than it’s affected every other state,” Pryor said. “They’re all feeling it. Georgia would tell you the same thing.”
No other changes were made to the structure of the tax credits and how they’re issued. Productions in Louisiana can earn up to a 40 percent rebate on in-state, qualified spend, including a 25 percent base credit.
English (US) ·