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Louisiana's film production tax incentives could end next year if special session tax bills pass

3 hours 2 minutes 58 seconds ago Wednesday, November 13 2024 Nov 13, 2024 November 13, 2024 7:52 PM November 13, 2024 in News
Source: WBRZ

BATON ROUGE — Among the tax reforms Gov. Jeff Landry wants to implement during a special legislative session on the state's tax code is the accelerated rollback of film and television production tax credits.

One of the bills that includes that change, HB2, passed the House on Wednesday by a vote of 79 to 19.

The bill would eliminate the state’s film tax credit program by changing the program’s end date from July 1, 2031, to June 30, 2025.

Several wide-ranging bills would modify how the state applies certain tax credits and deductions — as well as establish a flat rate for calculating income taxes for individuals, estates and trusts — and would "repeal a sales tax exclusion for certain purchases by motion picture production companies." 

The state's current tax incentive encouraging productions to film in Louisiana is a 25% tax credit with an investment of $300,000 or more. Filming outside of New Orleans, hiring residents on sets and using local visual effects can also increase the tax incentive percentage.

"Proposed law retains present law but accelerates termination of the motion picture production tax credit," the law proposed in the state House of Representatives said.

Film production in Louisiana has garnered national attention over the last few years with films like A23's wrestling biopic "The Iron Claw," historical fiction adaptation "Where the Crawdads Sing" and experimental independent film "The Nickel Boys" being shot in the state.

A major production — Ryan Coogler's "Sinners" — was shot in and around Donaldsonville and is expected to premiere in 2025.

The bill would also reduce the corporate income tax to a flat rate of 5.5% in 2025, and 3.5% in the years following.

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