New Orleans, LA (1888PressRelease)
March 20, 2009 - Most legislators agree that the program should be extended but the current economic problems and increased pressure from other states has fueled discussion about whether or not changes are needed to the program, which has generated over $2 billion in revenue for the state since 2002.
Most Louisiana lawmakers, including Governor Bobby Jindal, see the tax credits as an important part of the state’s economy and are pushing to extend the program. Jindal has said that he will support extending the current 25 percent level of movie tax credits for 2 more years and 5 years on infrastructure credits. Jindal also supports eliminating the 2009 deadline for The Digital Media Production Tax Credit, a program for the development of video games, animation and special effects.
And since lawmakers seem to agree on continuation the debate shifts to the question of what the future should look like for the tax credit program? Among the factors being discussed during the debate over the future shape of Louisiana’s film incentive program are:
Incentive structure
The Louisiana Motion Picture Act allows out of state film producers to earn a 25% tax credit on their qualified Louisiana based production and 10% on labor costs. The legislature is debating whether or not raising these percentages is necessary to ensure the program remains competitive.
Impact of a worsening economy
Like most states, Louisiana faces a budget shortfall for 2009. Decreases in state revenues make it harder to expand tax incentives in a down economy. However the potential decrease in jobs or revenue from film and TV productions is of more concern to state officials.
Increased pressure from other states
Given the success of Louisiana’s film program other states are now trying to compete in this sector and have begun offering incentive packages of their own. States like Georgia and Michigan have “upped the ante” by setting tax credits at higher levels than have previously been done before. There is great debate in those states as to whether or not this is financially sustainable but the net effect has been greater competition.
Louisiana film industry executives are pushing to have the film tax credits extended in their current state although there is some discussion on what the percentages should be. And while other states have created programs with deeper discounts Louisiana has many other factors which help to level the playing field including unique locations, strong film infrastructure, a highly trained workforce and ongoing support from state and local officials.
FBT Film and Entertainment provides a full range of services for film producers looking to maximize their “Louisiana spend” on qualifying productions made in state. FBT Film has offices in New Orleans and Los Angeles as well as unique partnerships with Raleigh Films and Media Services. These partnerships allow FBT to offer film tax credits, financing, payroll and even post production. Call 504-584-5888 or contact us for more information.
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