Louisiana Senate Bill SB96

Louisiana 2015 Regular Session

• Introduced: 4/1/15
• Refer: 4/1/15
• Refer: 4/13/15

Caption

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)

Impact

The enactment of SB 96 is expected to impact the economic landscape of the film industry in Louisiana. By placing a cap on the credits, the legislation seeks to prevent any single fiscal year from experiencing excessive claims that could strain state finances. Supporters argue that the rollover provision will also enhance the attractiveness of Louisiana as a filming location by providing flexibility and security for productions seeking tax incentives. However, limits on credits could also pose challenges for larger productions that may exhaust the cap quickly, potentially leading some investors to reconsider filming in the state.

Summary

Senate Bill 96 introduces significant changes to the existing framework of motion picture investor tax credits in Louisiana. The bill establishes a cap of $300 million on the total tax credits that can be claimed against state income tax for motion picture productions during each fiscal year. This limit is structured to be enforced on a first-come-first-served basis and aims to manage the financial exposure for the state while still encouraging investment in local productions. Furthermore, the bill stipulates that any additional unclaimed credits can be rolled over into subsequent fiscal years, potentially increasing the availability of credits in future periods.

Sentiment

The initial sentiments surrounding SB 96 appear to be mixed among industry stakeholders. Proponents, including lawmakers and some investors, believe that a cap will bring greater accountability while still facilitating investments in the local economy. Conversely, critics express concern that this limitation may deter filmmakers who rely heavily on tax credits for the financial viability of their projects. The balance between fiscal responsibility for the state and the desire to foster a robust film sector is central to the ongoing discussions about the bill.

Contention

The main contention surrounding SB 96 revolves around the implications of limiting tax credits for future motion picture productions. Various groups question whether the cap will stifle the growth and competitiveness of Louisiana's film industry. Additionally, concerns have been raised about how these changes may affect the types of films that can realistically be produced in the state. As the bill progresses, stakeholders are keeping a close watch on adjustments to the cap and any further amendments that could respond to industry needs.