LA
Louisiana Senate Bill SB232

Louisiana 2015 Regular Session

Louisiana Senate Bill SB232

Introduced
4/3/15  
Refer
4/3/15  
Refer
4/3/15  
Refer
4/13/15  

Caption

Establishes a baseline limit on all claims against income tax for motion picture investor tax credits filed during a fiscal year on a first-come, first-served basis, gives claims above the amount priority in the next fiscal year and provides a termination date for the program. (gov sig)

Impact

If enacted, SB 232 will fundamentally alter how motion picture tax credits are utilized within the state. By placing limits on the amount that can be claimed in a fiscal year and establishing a 'first-come, first-served' protocol for submissions, the bill seeks to create a more streamlined and predictable system for investors. Furthermore, by terminating the credits after July 1, 2020, the legislation emphasizes the state's intent to evaluate the effectiveness of current tax incentives aimed at stimulating the local film industry, thereby potentially leading to adjustments in future policy.

Summary

Senate Bill 232 introduces a set of regulations concerning motion picture investor tax credits in Louisiana. The proposed changes modify the existing framework for claiming tax credits for investments in state-certified film productions. This bill sets a cap on the total claims allowed against state income tax each fiscal year, with a specified baseline limit of $194 million derived from historical claims submitted over five fiscal years. Additionally, any disallowed claims can be prioritized in subsequent fiscal years, aiming to ensure a fair distribution of available resources among film investors.

Sentiment

The sentiment surrounding SB 232 appears mixed among stakeholders. Proponents of the bill, including film industry advocates, argue that the new guidelines will foster a healthier economic environment for film production in Louisiana. However, some legislators and community members express concerns about the impact of strict caps on the growth of the cinema sector, fearing that such constraints could deter potential investments and undermine the state's attractiveness as a film production hub.

Contention

Notable points of contention center around the caps and the expiration of the tax credit program. Opponents assert that the bill could have detrimental effects on small production companies that rely heavily on such incentives for financing their projects. Conversely, supporters contend that the adjustments are necessary to maintain fiscal responsibility while preventing the overextension of state resources. The ultimate debate encapsulates broader themes of economic growth versus regulatory restraint, reflecting a divide among legislators on the best path forward for Louisiana's entertainment industry.

Companion Bills

No companion bills found.

Previously Filed As

LA SB231

Establishes a baseline limit on all claims against income tax for Brownfields Investor Tax Credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB229

Establishes a baseline limit on all claims against income and franchise tax for Angel Investor Tax Credit Program filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB226

Establishes a baseline limit on all claims against income tax for Digital Interactive Media and Software tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB7

Establishes a baseline limit on all claims against income and franchise tax for Angel Investor Tax Credit Program filed during a fiscal year on a first-income, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig) (OR SEE FISC NOTE GF RV)

LA SB227

Establishes a baseline limit on all claims against premium tax for new market tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB230

Establishes a baseline limit on all claims against income and franchise tax for musical and theatrical production income tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB225

Establishes a baseline limit on all claims against income and franchise tax for Research and Development tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB11

Establishes a baseline limit on all claims against income and franchise tax for musical and theatrical production income tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig) (OR INCREASE GF RV See Note)

LA SB228

Establishes a baseline limit on all claims against state taxes for industrial tax equalization exemptions filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB96

Limits all claims against income tax for motion picture investor tax credits filed during each fiscal year to $300 million, but rolls over any remaining balance to future fiscal years. (7/1/15)

Similar Bills

No similar bills found.