News Summary
Louisiana’s Senate Bill 232 has passed the House, aiming to reform the Motion Picture Production Tax Credit program. The bill introduces higher tax credits for film projects and removes previous caps on payroll tax credits, attracting larger productions to the state. With support from Governor Landry, the legislation aspires to enhance Louisiana’s competitiveness in the film industry and create new job opportunities.
Baton Rouge, Louisiana – Louisiana’s Senate Bill 232 (SB232) has successfully passed the House with a vote of 94-6 on May 28, 2023, and is now awaiting the signature of Governor Jeff Landry to become law. This pivotal legislation aims to significantly reform the state’s Motion Picture Production Tax Credit program, seeking to enhance Louisiana’s appeal as a prime destination for filmmakers.
The key provisions of SB232 introduce an enhanced tax credit structure, allowing for tax credits of up to 40% for approved film projects. This structure includes a base tax credit of 25%, along with additional incentives for productions that meet certain criteria: an extra 15% tax credit for employing local residents, a 10% credit for projects based on Louisiana screenplays, and a 5% credit for visual effects work performed in the state. Furthermore, the bill removes previous caps on per-project and per-person payroll tax credits, which used to limit claims to $20 million in production costs and $3 million per individual.
The elimination of these caps is projected to attract larger film productions and high-profile actors to Louisiana. For context, notable salaries in the industry include Margot Robbie’s earnings of $12.5 million for the film “Barbie” and Leonardo DiCaprio’s $30 million for “Killers of the Flower Moon.” The reforms proposed in SB232 are anticipated to create opportunities for robust employment in various sectors tied to filmmaking, thereby bolstering the local economy.
In conjunction with the new tax credit structure, Louisiana Economic Development (LED) will be granted the authority to assess film project applications based on their economic impact and state interests. This shift from a purely administrative role to a more evaluative and strategic function is expected to enable LED to facilitate more productive and beneficial projects for the state. The agency will also draft new administrative rules under legislative oversight to streamline the application process.
Governor Landry has voiced his support for the bill, indicating a positive outlook for the future of Louisiana’s film industry. The provisions established by SB232 will take effect for applications submitted on or after July 1, 2025. The timeline provides ample opportunity for the state to position itself as one of the most competitive locations for film production incentives nationwide.
Industry leaders view SB232 as a strategic maneuver to retain filmmaking talent in Louisiana and attract new filmmakers. Following the disruptions caused by the COVID-19 pandemic and recent labor strikes in Hollywood, there has been a noted interest among production companies to return to Louisiana as a shooting location. The film industry in Louisiana has been resilient through challenges, and supporters of SB232 believe the changes will revitalize it further.
As a state known for its rich culture and diverse landscapes, Louisiana’s film industry has historically faced ups and downs. The passage of SB232 represents a concerted effort on behalf of state legislators to revamp the industry, offering fresh incentives to filmmakers and renewed hope for local economies that rely heavily on film-related activities. With the anticipated influx of new projects, Louisiana could reclaim its status as a key player in the film production landscape in the coming years.
Deeper Dive: News & Info About This Topic
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