Sunsets Motion Picture Production Tax Credit. (gov sig) (OR INCREASE GF RV See Note)
Impact
The impact of SB 40 on state laws is significant, as it sunsets an existing tax credit program that has been vital for stimulating the film and television production industry in Louisiana. By limiting eligibility for tax credits to expenses incurred before 2018, the bill restricts future investment in entertainments sectors, potentially stalling economic growth in areas reliant on film-related jobs. The cessation of this program may lead to decreased film production and associated jobs, which have been commonplace in Louisiana due to the previous incentives.
Summary
Senate Bill 40, titled the 'Sunsets Motion Picture Production Tax Credit,' seeks to amend the existing Motion Picture Investor Credit law. The bill stipulates that no tax credits will be authorized for expenditures made on or after January 1, 2018, thereby effectively discontinuing the incentive for future film productions in Louisiana. The measure requires that all eligible expenses must be certified by the office of entertainment industry development before July 1, 2018, establishing a definitive end date for the certification process. This legislative action is aimed at managing the state's financial obligations regarding tax credits in the film sector.
Sentiment
Sentiment surrounding the bill appears to be mixed, with some stakeholders acknowledging the necessity of fiscal prudence while others lament the loss of financial incentives that have been crucial in attracting film productions to the state. Supporters of the bill argue that it provides clarity and finality regarding the tax credit, while opponents, including members of the film community, express concern over the potential deterioration of Louisiana’s status as a film-friendly state. The conversation reflects ongoing tensions between economic strategy and industry support.
Contention
Notable points of contention within discussions about SB 40 include concerns about the ramifications for local economies that have benefitted from film productions. Critics argue that removing the tax credit could lead to significant job losses and deter new projects, raising the question of how the state will balance budgetary constraints against the need to foster local industry growth. The sunset of these tax credits has sparked a debate over the efficacy of state incentives in shaping the economic landscape for creative industries, illustrating differing views on government intervention in economic development.
Reduces the amount of the income tax credit for state-certified productions and removes authority to transfer or sell motion picture investor tax credits (OR INCREASE GF RV See Note)