The Louisiana Legislature has passed a new film tax credit that is awaiting Gov. Jeff Landry's signature--which is expected. The bill sponsored by Bossier Senator Adam Bass makes significant reforms to the state's Motion Picture Production Tax Credit Program.
The key provisions of the Bill include an enhanced tax credit structure, removal of caps and discretionary oversight by the Louisiana Economic Development office. The Bill authorizes a tax credit of up to 40% for approved film production projects.
Most importantly, the Senate bill grants to the Louisiana Economic Development (LED) to evaluate applications based on factors such as economic impact, statewide distribution of funds, and alignment with the state's best interests. LED will be responsible for drafting new administrative rules subject to legislative oversight.
Currently, LED primarily plays an administrative role in the state's Motion Picture Production Tax Credit program, limited to verifying that productions meet specific statutory requirements. The new legislation gives LED the discretionary authority to assess applications based on broader economic factors, such as projected impact and statewide benefits.
The combination of high credit percentages, refundable credits, and removal of caps makes Louisiana's film production incentives more competitive. The incentives for local labor will be a boost to the state's workforce, leading to increased employment opportunities.
Film producers such as Curtis "50 Cent" Jackson will be anxiously awaiting the publication by LED of the administrative rules to qualify for the tax credits. One can expect that little to no new films will be launched in northwest Louisiana until these regulations are on the books. To date Jackson has not even filmed a commercial in the G-Unit Studios in downtown Shreveport or announced any events for Expo Hall which he has leased.