Louisiana Film Tax Credits: Will Flexibility Attract More Movies?

Louisiana's film tax credit program has undergone more than 30 adjustments in the past 33 years, but Louisiana Senator Adam Bass believes it's time for a change and has outlined a proposal to grant the Louisiana Economic Development (LED) authority to adjust film tax credits based on return on investment (ROI).  

A New Approach to Economic Development 

Bass recently told KEEL News that current tax credits can appear too rigid, requiring legislative changes for every adjustment. This bill would allow LED to set parameters for film tax credits, holding projects accountable for hiring local workers and meeting specific ROI targets. By centralizing control under LED, the state aims to streamline incentives and make Louisiana more competitive with states like Georgia and California. 

Addressing Revenue Concerns 

Revenue Secretary Richard Nelson has criticized the film tax credit program for not delivering sufficient ROI. Bass acknowledged the criticism but argued that the inconsistency in tax credit rules over the years has deterred filmmakers. By allowing LED to set clear, accountable standards, Bass believes the state can better manage its $125 million in available tax credits. 

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Local Jobs and Accountability 

A key component of the proposed bill is the emphasis on local hiring. LED would be empowered to require specific percentages of Louisiana residents and businesses in production projects to qualify for tax credits. This approach, Bass argued, ensures that tax dollars benefit local economies while attracting high-profile projects.