Even if playing with house money that eventually sunsets the program, Louisiana legislators should reject allowing the state’s Motion Picture Investors tax credit to bleed, even if reduced fashion, the state for another dozen years.
In this session, legislators have the option of extending the life of the exception past its scheduled end-of-fiscal year 2025 sunset. HB 562 by Republican Speaker Clay Schexnayder would give it another decade of life after that, and originally would have freed it from a $150 million annual cap on issuance although the $180 million annual cap on redemption would remain.
The credit allows for reimbursement of expenses in film or television production anywhere from 25 to 55 percent of expenses from a base amount of $50,000 to $300,000 on state income taxes; alternatively, these may act as a refundable credit at 90 cents to the buck (minus two percent as a transfer fee). Almost all monies paid out occur through this route, as according to the latest data nearly 97 percent goes to corporations, and overwhelmingly to out-of-state entities that have minimal Louisiana income tax liability. Simply, it’s taxpayer dollars siphoned directly into the pockets of filmmakers, only some of which makes it back into the state’s economic stream.