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The Revenue and Fiscal Affairs Committee of the Louisiana Senate has approved the state’s tax credit for film and television production in a version skinnier than before but at least still there.
The tax credit had been eliminated in two bills sent from the House that were amended today in committee to keep the incentive but reduce the annual cap to $125 million from $150 million. The amount set aside for residual claims was also set at $125 million, down from $180 million. The program, which starts at 25% but can rise as high as 40% in certain situations, has become increasingly popular with producers. It would sunset in 2031.
The bill must still be approved by the full Senate. It then heads back to the House for an up-or-down vote before reaching the desk of Governor Jeff Landry.
Production along with all tax incentives in the state are on the chopping block as Gov. Landry seeks to change Louisiana’s tax laws, slashing the corporate tax rate, currently the highest in the South, to make the state more competitive for business, and moving to a flat 3% personal income tax rate. The idea is to plug the ensuing tax revenue shortfall by eliminating tax incentives, including, among others, credits for the restoration of historic structures. The Senate committee also left that with cuts but intact.
Landry had a called state legislators to a special session earlier this month to vote on the measures.
“Today’s committee actions are just part of the legislative process. While we wish everything could be resolved quickly, that’s not how legislation happens. We are confident our state is committed to keeping the film industry in Louisiana, and we’re optimistic for a resolution by the end of the week,” said Jason Waggenspack, president of board of Film Louisiana (as well as founder and CEO of The Ranch Film Studios and partner in Neutral Ground Films), who testified at the House hearings and has been active in urging the industry to mobilize and contact legislators.
