Limits the amount of motion picture investor tax credit applications certified by the office each year (EG SEE FISC NOTE GF RV)
Impact
The implementation of HB276 is poised to significantly affect the motion picture industry within Louisiana. By placing an annual cap on tax credits, the state seeks to control the financial implications these credits have on its budget while still promoting local film production. However, this legislative measure may also yield unintended consequences, potentially limiting the number of productions that can benefit from these incentives, as filmmakers may seek other states with more favorable financial structures for filming.
Summary
House Bill 276 introduces a cap on the motion picture investor tax credits certified by the state of Louisiana, specifically limiting the total tax credits to an annual cap of $200 million. This change applies to the income tax credit for Louisiana taxpayers investing in state-certified productions. Currently, taxpayers earn a credit equal to 30% of their base investment in productions exceeding $300,000, plus an additional 5% credit on wages paid to Louisiana residents involved in these productions. The bill persists in maintaining existing credits while instituting this crucial financial ceiling.
Sentiment
Reactions to HB276 have been mixed among lawmakers and stakeholders in the motion picture industry. Proponents of the bill argue that the capping of tax credits is a responsible approach to fiscal management, ensuring that the state's finances can better absorb the costs associated with incentivizing film production. Conversely, critics express concerns that the cap could deter film producers from choosing Louisiana as a filming location, consequently harming local job creation and economic growth associated with the motion picture industry.
Contention
Notable points of contention surrounding HB276 include discussions about the effectiveness of such a financial cap amid an industry that thrives on investment and incentives. Critics argue that by limiting the total amount available, the state may undermine its competitive edge over other states that offer more attractive tax incentives without such caps. Furthermore, the pro-rata distribution method for applications exceeding the cap raises questions about equity and fairness among investors seeking to benefit from these credits.
Limits the amount of motion picture investor tax credits which may be awarded on state-certified productions approved during a fiscal year to $300 million, but rolls over any credits not awarded to future fiscal years. (7/1/15)