Louisiana Senate Bill SB514

Louisiana 2012 Regular Session

• Introduced: 3/12/12

Caption

Provides relative to an audit of the motion picture investor tax credit program. (8/1/12)

Impact

If passed, SB514 will significantly refine the process surrounding motion picture tax credits in Louisiana by mandating independent audits carried out by certified accountants who are unaffiliated with the production companies seeking these credits. This change aims to prevent potential abuses of the tax credit system by ensuring that all claimed expenditures are legitimate and properly documented. The measure would enable the Department of Economic Development to have more confidence in the financial data provided, possibly increasing the credibility of Louisiana's film tax credit program among stakeholders.

Summary

Senate Bill 514 focuses on streamlining the auditing process for the motion picture investor tax credit program in Louisiana. This bill amends existing laws to emphasize the qualifications and duties of a qualified accountant who will conduct audits. It outlines the requirements for a 'qualified cost report' that details production expenditures and ensures that these audits are transparent and adhere to established accounting standards for the film industry. Ultimately, the aim of SB514 is to improve financial oversight and accountability within the state's film production incentives.

Sentiment

The sentiment surrounding SB514 appears largely supportive, particularly from industries associated with film production and accountability advocates who see the need for stringent auditing measures. While there may be concerns about the administrative burden on production companies, the overall view is that these regulations will lead to more sustainable and responsible use of taxpayer funds. Key stakeholders assert that improved audits will protect the integrity of the film credit program while fostering an environment conducive to legitimate business practices.

Contention

One notable point of contention with SB514 revolves around balancing the rigor of audits with the operational realities of film production. Some industry representatives may argue that strict auditing requirements could deter smaller companies from participating in the tax credit program, as they might lack the resources to comply with extensive documentation and auditing processes. Critics may also express concern over whether this bill might inadvertently complicate the process of obtaining tax credits, thereby slowing down production timelines and reducing the attractiveness of Louisiana as a filming location.