Louisiana Film Industry Faces Decline, Seeks Tax Incentives

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A glimpse into the film production process in Louisiana, highlighting the need for new incentives.

News Summary

The film industry in Louisiana is struggling as production levels have dropped by 65%. With no major projects currently underway, lawmakers propose new tax incentives to revitalize the sector, hoping to attract filmmakers back to the state. This comes amid broader declines in U.S. film production as other countries offer more competitive incentives. Recent legislative efforts aim to enhance existing tax credits and streamline the process, with support from the local film community and economic development officials.

New Orleans, Louisiana – The film industry in Louisiana is currently facing significant challenges as production levels decline dramatically, necessitating a push for more competitive tax incentives. In recent years, Louisiana’s film production has plummeted by 65%, with no major film or television projects taking place locally at present. In stark contrast, the state had set a production record in 2008 with over 80 major projects being filmed, illustrating how the industry has changed over the last decade. At its peak, around 14 to 16 major productions were typically shooting each month in 2022.

The downturn in Louisiana’s film production echo broader trends experienced across the U.S. In 2022, U.S. film and television production was down by 26% compared to the previous year due to various factors including the impact of COVID-19 and ongoing strikes by Hollywood guilds. Conversely, countries such as Canada, Ireland, and Bulgaria have emerged as popular alternatives for filmmakers, offering more attractive film incentives that have led to a significant shift in filming locations. For instance, Canadian production increased by 2.8% during the last year.

Recent reports indicate that no U.S. filming locations currently rank among the top five preferred areas for production. The list includes Toronto, the U.K., Vancouver, Central Europe, and Australia, areas which are now reaping the benefits of their robust film tax incentive programs. In contrast, Georgia has paid out $1.3 billion in film tax credits over recent years, while Texas has plans to invest up to $2.5 billion over the next decade to attract studios.

In response to the decline, Louisiana lawmakers have proposed changes through Senate Bill (SB) 232, sponsored by Senator Adam Bass with backing from Louisiana Economic Development. The bill seeks to authorize more efficient allocation of the existing $125 million in annual film tax credits and aims to simplify the tax credit structure, providing a flat 40% credit for qualifying productions. Currently, productions can only qualify for a 25% tax credit, which can be boosted to 40% through local hiring incentives.

Moreover, the proposed bill intends to eliminate current caps on tax credits for actors and directors, which would allow more flexibility to attract larger film productions back to Louisiana. The changes are largely supported by industry professionals who believe they could spark job creation and stimulate growth within the state’s film economy. Additional insights from Louisiana Economic Development Secretary emphasize the necessity for a more adaptable incentive approach due to historical legislative variances.

To further support the film industry, an initiative dubbed Film USA plans to create a national film office to boost the American film sector on a global stage. This effort aims to ensure competitiveness within the industry and has garnered support from over 90 film commissioners as part of the U.S. Commerce Department’s strategy for film promotion.

Louisiana boasts a unique film production infrastructure coupled with a vibrant local culture, which presents a global appeal for many filmmakers. A survey conducted recently revealed that approximately 80% of the state’s population endorses the film tax incentive program owing to the substantial economic returns it brings. Moreover, the establishment of the Entertainment Development Fund is heralded as a significant step towards workforce development in the film sector, fostering educational connections across 18 higher education institutions and focusing on aspects of digital media education.

Despite the current downturn in production levels, optimism persists within the industry. Reports indicate that some production companies are already inquiring about shooting films in Louisiana later this year. Local industry professionals express a hopeful outlook for the future, emphasizing the critical need for effective and flexible tax incentives to restore and sustain the vibrancy of Louisiana’s film economy.