Louisiana Senate Bill SB78

Louisiana 2017 Regular Session

• Introduced: 3/30/17
• Refer: 3/30/17
• Refer: 4/10/17

Caption

Eliminates the film tax credit and permanently extends the fiscal year program cap on all allowances of the tax credits and transfers. (7/1/17) (OR INCREASE GF RV See Note)

Impact

The legislative decision to eliminate the film tax credit will likely have far-reaching effects on Louisiana's film industry. Prior to this bill, the tax credit was an integral part of attracting motion picture companies to the area, promoting economic activity and job creation within the local economy. The permanent caps on tax credits will restrict future potential investments from film productions, possibly leading to a decrease in projects filmed in the state and a shift of operations to other states that offer more competitive benefits for filmmakers.

Summary

Senate Bill 78, introduced by Senator Luneau, proposes significant amendments to the existing film tax credit provisions in Louisiana. The bill aims to eliminate the film tax credit available for motion picture productions and to make the existing caps on fiscal year tax credits and transfers permanent. This change affects various productions seeking financial incentives for filming in the state, particularly those certified by state authorities before June 30, 2017, as it limits their eligibility for tax benefits going forward.

Sentiment

The sentiment surrounding SB 78 has been mixed, with supporters arguing that the elimination of the tax credit will help to alleviate fiscal burdens on the state's budget, while critics express concerns about the long-term viability of Louisiana’s film sector. Many stakeholders in the industry believe that the absence of these incentives will deter new productions, leading to a loss of jobs and economic opportunities, thereby undermining previous investments made in creating a robust film industry in the state.

Contention

Notable points of contention revolve around the balance between providing economic incentives to attract businesses and ensuring responsible fiscal management. Proponents of SB 78 emphasize the need to impose limits on the tax credits given their previous fluctuations and potential impacts on state revenue, while opponents argue that such a drastic reduction in investment incentives could lead to diminished growth in the motion picture sector, which has provided pivotal employment opportunities in Louisiana.