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.