News Summary
Governor Jeff Landry has signed Act 44 into law, overhauling Louisiana’s film tax credit program to offer expanded incentives for filmmakers. The legislation provides up to 40% refundable tax credits and additional bonuses for hiring local talent. The aim is to counteract a decline in film production and promote economic growth. With a commitment to support the film sector through 2031, the changes signal a renewed focus on making Louisiana a competitive filming destination. However, concerns remain regarding eligibility and program administration.
Baton Rouge, Louisiana — Governor Jeff Landry has signed Act 44 into law, a significant overhaul of Louisiana’s film tax credit program aimed at revitalizing the state’s stagnant film industry. The new legislation introduces expanded tax incentives for filmmakers, offering up to 40% in refundable tax credits. This move is seen as a crucial step to make Louisiana more competitive as a filming location, especially given recent declines in production activities.
Under the new law, additional bonuses are available for productions that hire Louisiana residents, utilize scripts based in the state, and carry out visual effects work locally. These incentives aim to bolster local job creation and support various sectors related to film production, including hospitality and catering, which have been adversely affected in recent years.
Significantly, the law has eliminated previous caps on project and individual payroll credits, allowing projects to receive more substantial financial support. Louisiana Economic Development (LED) now has enhanced authority to evaluate and approve film projects, which is intended to streamline the decision-making process. Furthermore, Act 44 extends the film tax credit program through 2031, signaling a long-term commitment to supporting this vital sector.
The implementation of Act 44 comes in response to a substantial decline in film production within the state, primarily influenced by rising costs and stiff competition from other filming locations. As of May 20, only one production was underway in Louisiana, underlining the urgency for this new law. Alongside Act 44, SB 232, designed to complement the tax credit overhaul, received strong bipartisan support in the state House, passing with a vote of 94-6.
The long-established film industry in Louisiana has historically served as a significant driver for tourism. Popular productions shot in the state have attracted visitors eager to explore locations seen on screen. However, industry leaders have voiced concerns about the potential confusion regarding eligibility requirements under the new regulations, especially as control is shifted to LED, raising questions about the program’s administration.
Despite these concerns, supporters of the new law believe it could lead to significant job creation and economic growth, revitalizing local film jobs that have been straining due to recent challenges. Film Louisiana President noted a rising interest in filming in the state, especially following the COVID-19 pandemic and the Hollywood writers’ strike. These renewed interests suggest a potential rebound for the state’s film industry if the newly implemented measures prove effective.
Senator Adam Bass, the sponsor of the bill, highlighted the importance of making the film tax credit program more agile and responsive to the evolving trends in the film industry. His efforts reflect Louisiana’s broader initiative to diversify its economy, moving beyond traditional sectors such as oil, tourism, and agriculture.
However, the film tax credit program in the state hasn’t been without its challenges. Past evaluations indicated low returns for taxpayers, raising concerns about the framework’s sustainability. The program faced the threat of elimination in previous years, though it was ultimately preserved through modified annual caps. The recent legislative changes aim to address these long-standing issues and enhance the attractiveness of Louisiana as a premier filming destination.
As Louisiana embarks on this new chapter for its film industry, the success of Act 44 and its complementary legislation will be closely monitored. The outcomes are expected to impact not only filmmakers but also the state’s economy at large.
Deeper Dive: News & Info About This Topic
- Bloomberg Tax: Louisiana’s Tax Share Problems
- Louisiana Illuminator: Louisiana Film Tax Credits
- Business Report: Louisiana’s Film Industry Comeback
- New York Times: Hollywood Film Tax Credits Incentives
- Google Search: Louisiana Film Tax Credits
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
