Authorizes contracts for motion picture investor tax credit for five years, renewable for five more, for scripted television series if they agree to construct or lease production facilities in Louisiana and reach an agreement with LED on guaranteed expenditures and jobs for residents. (gov sig)
Impact
The proposed legislation amends the existing framework governing motion picture tax credits by allowing for greater flexibility and incentives for producers. The bill outlines that certified productions will benefit from tax credits upon successful completion of each season, promoting an ongoing investment in local production facilities and infrastructure. This shift is expected to reinforce Louisiana’s position in the competitive landscape of film production, encouraging more companies to base their projects in the state, which could result in significant economic activity and job creation.
Summary
Senate Bill 99 seeks to enhance Louisiana's appeal as a location for motion picture and television production by authorizing renewable contracts for motion picture investor tax credits. These contracts will cover a period of five years, with the possibility of renewal for an additional five years, provided that the productions meet certain conditions. Specifically, the bill targets scripted television series that agree to construct or lease production facilities within Louisiana. The aim of the bill is to attract more film and video productions, thus boosting the local economy and generating jobs for residents.
Sentiment
The sentiment around SB 99 appears to be predominantly positive among industry stakeholders and advocates for economic development. Supporters argue this bill represents a proactive approach to retaining and attracting creative industries in Louisiana, fostering local talent and development. However, concerns may exist regarding the effective use of public funds for tax credits, with some legislators potentially questioning the long-term benefits versus the immediate financial implications on the state's budget.
Contention
Despite the positive outlook, there may be notable points of contention regarding accountability and the effectiveness of the tax credits. The requirement for productions to meet specific guarantees concerning job creation and expenditure presents a mechanism for oversight, but there might be fears that without rigorous checks, the benefits could fall short of expectations. Moreover, questions may arise about the equitable distribution of opportunities across different regions within Louisiana and whether such concentrated incentives primarily favor larger production companies.
Authorizes certifications of motion picture investor tax credits for Indigenous Louisiana Productions which agree 75% of its expenditures for ATL services will be expended on Louisiana residents and that 75% of its jobs will employ Louisiana residents and provides special tax credit provisions for them. (gov sig)
Limits expenditures for ATL services eligible for motion picture investor tax credits to 40% of total production expenditures in the state. (See Act) (EN INCREASE GF RV See Note)
Authorizes the recapture of disallowed tax credits from owners of entities created or organized for the primary purpose of receiving or selling motion picture investor tax credits. (gov sig) (RE SEE FISC NOTE GF RV See Note)
Makes changes to both the Investor Tax Credit and the Import-Export Cargo Credit of the Ports of Louisiana Tax Credit Program and provides a new termination date for the credit. (7/1/13) (EN DECREASE GF RV See Note)