It’s time for Louisiana to stop swimming against the tide and use money thrown away on making movies for more important needs – especially as larger economic trends threaten to wither away the program.
Recently, New Orleans’ film office director and city councilors griped about how film production statewide but in the city particularly had taken a tumble. Years ago, a billion dollars a year was coming into the state in production costs, but now that has dropped to $185 million. This matters according to advocates of using government as a direct jobs creator as fewer jobs result from a dive in production value. Thus, they call for increasing the generosity of the state’s tax credit regime, which already is quite lucrative: 25 percent tax credit for all production costs and 10 percent more if an in-state screenplay and 5 percent more if outside the New Orleans area, and then 15 percent more on compensation for all Louisiana residents used plus 5 percent on special effects past $1 million. The maximum base is 40 percent.
Further, the credit is almost entirely refundable, meaning investors outside the state without Louisiana state income tax liability can reap all of these benefits, at the 88 percent level, meaning taxpayers pick up the tab. In a recent ranking of states, the state winds up sixth-best in generosity, and doesn’t have a higher showing only because it caps the amount of credits issued and paid per year at $125 million, something advocates for more largesse wish would revert back to the previous uncapped that also would speed up claims paid out.
