Louisiana Film Tax Credit Program Deserves Legislative Support

Louisiana has developed a reputation as one of the top states for film production. Great locations, unique stories and spicy food combined forces with powerful tax incentives in 2002 to create a combination which has generated over $2 billion in revenue for the state. But during the 2009 legislative sessions lawmakers must evaluate the future course of the tax credit program as the original dates for the program near their "sunset."

Fortunately most Louisiana lawmakers, including Governor Bobby Jindal, see the tax credits as an important part of the state's economy and are pushing to extend the program. Jindal has said that he will support extending the current 25 percent level of movie tax credits for 2 more years and 5 years on infrastructure credits. Jindal also supports eliminating the 2009 deadline for The Digital Media Production Tax Credit, a program for the development of video games, animation and special effects.

And since lawmakers seem to agree on continuation the debate shifts to the question of what the future should look like for the tax credit program? Among the factors being discussed during the debate over the future shape of Louisiana's film incentive program are:

* Incentive structure The Louisiana Motion Picture Act created allows out of state film producers to earn tax credits on their qualified Louisiana based production and labor costs. These tax credits can be converted into cash and help make Louisiana based film productions more lucrative for producers and investors. The percentages and uses of tax credits are something the legislature will carefully consider to ensure the program remains competitive.
* Financial impact of the film industry The film industry has become a major economic engine for Louisiana. The state film office reports that Louisiana has taken in more than $2 billion in revenues and over $200 million in payroll alone generated by film and TV productions between 2002 and 2008. Any future changes to this program could have an impact either positive or negative on the states economy.
* Development of key film support infrastructure As more film productions continue to take place in Louisiana a strong infrastructure of film related services has taken root all over the state. These include post production services, staffing, finance and even specialty education programs can now be found throughout the state. The future of the film incentive program will help determine if this infrastructure continues to grow.
* Impact of a worsening economy Like most states, Louisiana faces a budget shortfall for 2009. Decreases in state revenues make it harder to expand tax incentives in a down economy. However the potential decrease in jobs or revenue from film and TV productions is of more concern to state officials.
* Increased pressure from other states Given the success of Louisiana's film program other states are now trying to compete in this sector and have begun offering incentive packages of their own. States like Georgia and Michigan have "upped the ante" by setting tax credits at higher levels than have previously been done before. There is great debate in those states as to whether or not this is financially sustainable but the net effect has been greater competition.

We would like to see the film tax credits extended in their current state. While other states have created programs with deeper discounts Louisiana has many other factors which help to level the playing field including unique locations, strong film infrastructure, a highly trained workforce and ongoing support from state and local officials.

Andre Savoie is the President of WSI in New Orleans and manages online marketing for FBT Film and Entertainment. FBT Film and Entertainment provides a full range of services for film producers looking to maximize their "Louisiana spend" on qualifying productions made in state. FBT Film has offices in New Orleans and Los Angeles as well as unique partnerships with Raleigh Films and Media Services. These partnerships allow FBT to offer film tax credits, financing, payroll and even post production. Visit http://www.FBTFilm.com, or call us at 504-584-5888 for more information.

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