Reduces the annual cap on the amount of motion picture production tax credits awarded by the DED, reduces the annual cap on the amount of motion picture production tax credits claimed on tax returns, and reduces the per project cap (Item #21) (OR +$90,000,000 GF RV See Note)
Impact
The implications of HB 7 on state laws are significant, particularly for the entertainment sector within Louisiana. By lowering the thresholds for tax credits, this bill could potentially limit the financial support available for filmmakers and production companies operating in the state, thus influencing the overall attractiveness of Louisiana as a filming location. This move may lead to fewer productions being greenlit, which could have a ripple effect on local economies that benefit from the film industry, such as hospitality and service sectors.
Summary
House Bill 7 aims to significantly reduce the annual caps on motion picture production tax credits in Louisiana, changing the existing framework for financial incentives available to film and media productions. The bill reduces the annual cap on tax credits awarded by the Department of Economic Development (DED) from $150 million to $75 million. It also lowers the total amount that can be claimed on tax returns from $180 million to $90 million each fiscal year. Additionally, the per project cap has been decreased from $20 million to $10 million, with specific reductions for scripted episodic content from $25 million to $12.5 million per season.
Sentiment
The sentiment surrounding this bill has been divided among stakeholders. Supporters argue that the reduction in tax credits is a necessary step towards fiscal responsibility, aiming to reallocate funds to other areas that may require more urgent attention. Conversely, critics, particularly from the film industry, view these changes as detrimental to the growth of Louisiana's film sector, fearing that it will lead to a decline in production activity and jobs associated with this industry.
Contention
Notable points of contention within the discussions on HB 7 revolve around the balance between supporting economic development in the film industry and managing state expenditures effectively. Some lawmakers raised concerns about potential job losses and the negative impact on local economies resulting from decreased production activity. The debate highlights ongoing tensions between fiscal conservatism and the need to invest in industries that contribute to economic vibrancy in the state.
Reduces the annual cap on the amount of motion picture production tax credits awarded by the DED, reduces the annual cap on the amount of motion picture production tax credits claimed on tax returns, and reduces the per project cap (Item #21) (OR +$45,000,000 GF RV See Note)
Reduces the annual cap on the amount of motion picture production tax credits awarded, the cap on the amount of credits claimed on tax returns, and reduces the per project cap (OR +$80,000,000 GF RV See Note)
Reduces the annual cap on the amount of motion picture production tax credits awarded, the cap on the amount of credits claimed on tax returns, and the per project cap (OR +$100,000,000 GF RV See Note)
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)