Louisiana Senate Bill SB173

Louisiana 2021 Regular Session

• Introduced: 4/1/21
• Refer: 4/1/21
• Refer: 4/12/21
• Report Pass: 4/19/21
• Engrossed: 4/28/21
• Refer: 4/29/21
• Report Pass: 5/24/21

Caption

Provides relative to the administration of the Motion Picture Production Tax Credit. (gov sig) (RE SEE FISC NOTE GF RV See Note)

Impact

The modifications proposed in SB173 remove the loan guarantee program and deal-closing fund from permissible uses of the Louisiana Entertainment Development Fund. Instead, these funds would be redirected to workforce development programs related to motion picture and television. Furthermore, the bill allows for the rollover of any unused tax credit cap, promoting better allocation of financial resources over fiscal years. These changes signal an emphasis on not only sustaining but also expanding the economic impact of the entertainment industry in Louisiana.

Summary

SB173 aims to modify the administration of the Motion Picture Production Tax Credit in Louisiana by extending the program, which incentivizes film production within the state. Notably, the bill extends the program termination date from July 1, 2025, to July 1, 2028, providing a longer window for productions to benefit from tax credits. This change reflects a push to enhance Louisiana's attractiveness as a filming location amidst competitive incentives offered by other states, thus having significant implications for the state's film industry and economy.

Sentiment

The sentiment around SB173 is largely supportive among sectors benefiting from the film production industry, as proponents argue that extending and refining tax credits will stimulate economic growth and job creation. The entertainment community has voiced enthusiasm regarding the extended timeline and increased funding flexibility. Conversely, there are concerns regarding the elimination of certain funding mechanisms previously allocated for smaller independent films, which some stakeholders fear may limit opportunities for less-established filmmakers.

Contention

Opposition to SB173 centers on the reduction of reserved funding for independent film productions, which could affect the diversity of projects and filmmakers supported by the state. While the intent is to reallocate resources to enhance workforce development, critics argue that the bill may inadvertently marginalize independent creators who play a crucial role in the film ecosystem. The overall legislative discourse underscores the challenges of balancing support for large-scale productions while ensuring meaningful opportunities for emerging artists and productions.