Louisiana House Bill HB548

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15

Caption

Establishes an annual cap on the motion picture investor income tax credit and reduces the amount of the tax credit

Impact

The law will have direct implications for filmmakers and production companies operating within the state. By lowering the tax credit percentage and imposing a cap, the bill is set to limit the maximum available incentives, potentially affecting the attractiveness of Louisiana as a filming location. This change could lead to decreased investments in local productions, thereby affecting economic outcomes in regions that rely on the film industry for jobs and revenue.

Summary

House Bill 548 aims to amend the existing framework for motion picture investor tax credits in Louisiana. Specifically, it reduces the tax credit from 30% to 23% for qualified productions during a designated timeframe and establishes an annual cap of $250 million for these tax credits. The bill presents a significant shift in how state funding for the film industry is managed, aiming to regulate the financial incentives available to motion picture projects while still encouraging investment in Louisiana's film sector.

Sentiment

The general sentiment regarding HB 548 appears to be mixed. Supporters argue that this bill is a necessary step towards managing the state's financial exposure while ensuring that production companies remain incentivized to film in Louisiana. However, critics express concern that the reduced credits and the imposed lifetime cap could dissuade filmmakers from selecting Louisiana for future projects, emphasizing the need for robust state support in a competitive industry.

Contention

Notable points of contention arise from the balance between fiscal responsibility and supporting local industries. Proponents emphasize the necessity of establishing a more sustainable budget for tax credits, while opponents worry that such reductions could stifle the growth of Louisiana's film economy. The conflict underscores a fundamental debate about how best to promote economic development through targeted tax incentives.