Louisiana’s increasingly popular state tax credit for film and television production may be at risk as legislators at a special session are considering the repeal of a wide range of incentives.
The credit – with a base of 25% that can run as high as 40% — is capped at $150 million annually (with up to $30 million more for credits unclaimed the previous year).
It’s been attracting productions and Louisiana regularly comes up among the list of states filmmakers look at. Over the past decade, it has hosted over 700 motion pictures, TV series and documentaries from Interview with the Vampire and National Treasure to Nickel Boys, Leverage: Redemption, The Iron Claw and Where The Crawdads Sing.
The fight, as always, centers around whether the film tax incentive brings in more than it costs the state, which has reported a budget shortfall.
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Proponents say it accounts for $360 million in spending. Adversaries cite a report by the Department of Revenue that found, for the 2022-2023 fiscal year, state GDP grew by significantly less than what the state spent on the incentive.
Production is among a handful of incentives that appear to be on the block as Louisiana Gov. Jeff Landry attempts to change Louisiana’s tax laws, slashing the corporate tax rate, currently the highest in the South, by four points and moving to a flat 3% personal income tax rate, all to make the state more competitive.
The idea is that the revenue shortfall of lower taxes would be mitigated by eliminating these other incentives, including, among others, ending a tax credit for the restoration of historic structures.
Georgia had a big fight earlier this year as lawmakers tried, unsuccessfully, to modify the un-capped tax incentive of a state where the entertainment industry has become firmly embedded in the economy with sound stages, dedicated crews and production programs embedded in high schools and universities.
Louisiana hasn’t developed Georgia’s infrastructure but has been growing steadily.
The special session opened Nov. 6 and will end no later than 6 pm on Nov 25.
Eliminating the incentives targeted in the Governor’s plan will require a two-thirds supermajority in the House and Senate.