Louisiana House Bill HB686

Louisiana 2017 Regular Session

• Introduced: 5/16/17
• Refer: 5/16/17
• Refer: 5/17/17
• Report Pass: 5/22/17
• Engrossed: 5/30/17

Caption

Provides for the Louisiana-Headquartered Motion Picture Production Cooperative Endeavor Program (RE SEE FISC NOTE GF RV See Note)

Impact

The CEA program is expected to have a substantial economic benefit by promoting local productions and encouraging the use of Louisiana's financial institutions for production financing. This initiative seeks to establish a sustainable motion picture industry that reduces reliance on traditional tax credits while encouraging the retention of production-related dollars within the state. An estimated annual allocation of $20 million will be reserved for this tax credit program out of the existing motion picture tax credits to support qualified production companies directly.

Summary

House Bill 686 establishes the Louisiana-Headquartered Motion Picture Production Cooperative Endeavor Program (CEA) aimed at promoting the motion picture industry in Louisiana. The bill authorizes the state to enter into cooperative endeavor agreements with Louisiana-based banks and qualified production companies to facilitate financing for qualified productions. Under this program, a tax credit against state income taxes is available to incentivize local production companies to start and complete film projects in the state, thereby enhancing economic development and job creation within the state.

Sentiment

The sentiment around HB 686 is generally positive among supporters who believe the program will revitalize Louisiana's film industry, create jobs, and encourage local filmmakers. However, concerns have been raised regarding potential misallocation of funds and whether the tax credits will yield the projected economic returns. Opponents may question the effective oversight of these credits and the long-term viability of the proposed cooperative program in a competitive landscape of film production.

Contention

Notable points of contention include the potential for over-reliance on tax credits which may not necessarily translate to job creation or economic stability. Critics also highlight the lack of comprehensive reporting mechanisms to ensure transparency in the allocation and utilization of tax credits. The bill specifies rigorous conditions for eligibility and operational procedures, yet the debate remains focused on whether such measures are sufficient for safeguarding public interests while fostering growth in the local film sector.