Shreveport Facing Mounting Problems With Film Tax Credit Repeal

The Louisiana House advanced a sunset elimination to the state's modest film tax credit program this week in Baton Rouge. If the state Senate passes it (expected), and Louisiana Governor Jeff Landry signs it, the state will likely be saying "goodbye" to an industry that has helped define it post-Katrina.

In the state, the film and tax credits are worth about $150 million dollars, but experts say that earns the state back $360 million in jobs, and another $600 million in associated sales. Beyond the actual filming, the state has developed an entire industry around film tourism. That industry alone generates $2.5 billion annually.

There have been other partisan research surveys that suggest there's no economic gain for the state with the tax credit, but logic would suggest otherwise. Multiple other states have far more robust filming tax credit programs, and other states are launching their own programs right now.

In fact, Louisiana gets credit for being the state that invented the idea. The state legislature developed the filming credit program all the way back in 1992.

What Does The Film Tax Credit Repeal Mean for Shreveport?

Now cities like Shreveport are facing some tough scenarios. Just a few months ago, Curtis "50 Cent" Jackson brought his vision to Shreveport. Partnering with the city to take over Millennium Studios, with the intent to turn it into his G-Unit production headquarters. This plan had Shreveport referred to as have the "trajectory to be one of the fastest-growing cities". Jackson often referenced Tyler Perry, and his production empire in Georgia as inspiration.

But Perry enjoys the nation's second best tax incentive program for filming in Georgia. Without Louisiana's incentive program, the duplication of Perry's portfolio may not be possible in Shreveport.

However, while a lot of attention has been placed on Jackson's filming plans in Shreveport, there are Shreveport residents who are also facing growing concerns over the elimination of this program.

Academy Award Winner, and Shreveport resident, William Joyce tells KTBS that he sees issues coming. Joyce and his producing partner Rick Simpson told the TV station that this change may "force their hand" in moving productions out of Shreveport. They currently have plans to start a major film project in the city, but these changes will likely impact that.

Why Does The Louisiana Governor Hate Film Production?

The Governor and his officials keep saying something along the lines of "the state shouldn't be picking winners and losers" with incentive programs. However, their actions seem to paint a different picture.

While they're going to eliminate the filming incentive, they have no intention to eliminate the tax breaks and incentives for other industries. Louisiana Economic Development Secretary Susan Bourgeois is on record saying that the state will not touch the Industrial Tax Exemption Program, or ITEP.

ITEP is the single greatest tax break and incentive program in the state...it might be the biggest in the nation. Since 1998, the ITEP program has handed out over $20 billion to companies across the state. Not awarded through votes, or decisions made by people elected by Louisiana residents, but by a small group of people in a dark room in Baton Rogue. Without cameras, representation, or accountability, the ITEP leaders can give away billions to companies at the expense of the Louisiana tax payer.

Even though some changes were made to ITEP that gave power to elected officials a few years ago, one of the first things Governor Landry did when he took power was to rip the power away from those elected officials. The power was given back to the lobbyist group, and they were given even more power.

In one of the first move of the new ITEP group, they gave away $185 million in June. Which is more than the entire film tax credit program.

So the idea of "not picking winners and losers" is kind of true, because no elected official is picking the winners, but the current Louisiana government just enabled them to do much worse.

Now, they're ignoring how much ITEP is giving away, and shifting the blame to programs that are flashy, instead of ones that are actually meaningful. The film tax credit isn't killing the state, but ITEP is.