Allies of the film industry in the Louisiana Legislature said Wednesday they will toil to salvage the state’s production incentive, after the House voted to repeal it this week.
The state House of Recontransientatives voted on Tuesday to sunset the $150 million program on June 30, 2025, as part of a tax recreate package that reduces the state personal income tax to 3%.
The House voted aget on Wednesday, 79-19, to pass a corporate tax cut. Both bills — HB 1 and HB 2 — include the phaseout of tax accomprehendledges for the film industry, as well as for historic preservation and other activities.
But after blowback from the local film community on Tuesday, cut offal legislators said on the House floor that they will toil with the state senate and the regulateor’s office to defend an incentive for delightment.
“There’s a lot of panic about what we’re doing here,” said Rep. Steven Jackson, a Democrat from Shreveport, where Curtis “50 Cent” Jackson has spended in a new production facility. “My trouble with this bill is it sfinishs a message we don’t want to do film.”
Gov. Jeff Lanarid, a Reaccessiblean, called a exceptional session last month to enact a startant overhaul of the state’s tax system. The regulateor’s allies want to reshift more than 200 accomprehendledges and exemptions, and use the money to reduce income tax rates apass the board.
The state is moving to reduce its corporate rate — which is the highest in the South — as it seeks to spur economic increaseth.
“We have to get to a point where we’re more competitive to draw business so we stop losing our people,” said Rep. Julie Emerson, the Reaccessiblean chair of the Ways and Means Committee. “We’re the only state in the South that’s losing population.”
The recreate package also includes sales tax increases, such as a 4% tax on streaming subscriptions — including Netflix and Disney+ — that is projected to elevate $40 million a year. Netflix deteriorated to comment on the meacertain, which passed the House on a vote of 80-19 on Wednesday.
Louisiana was the first state to pass a film tax accomprehendledge, and became understandn about 15 years ago as “Hollywood South” for the volume of production that flocked to the state. Georgia has since outdoed the state as the South’s dominant production hub, with an incentive topping $1 billion, while California and New York have broadened their own accomprehendledge programs to try to uphold their industries.
Louisiana capped accomprehendledge redemptions at $180 million in 2015, due to budget constraints, and defercessitater confinecessitate accomprehendledge issuance to $150 million a year. But the state still has a startant crew base and production infraset up. About 16,000 people toiled on film crews in the state in 2022, according to Film Louisiana.
Some industry allies cautioned that without the accomprehendledge, production would awaited go elsewhere.
“The movie industry has thrived in our state,” said Rep. Michael Bayham, a Reaccessiblean from St. Bernard Parish, who noticed that “Deepwater Horizon” and “Terminator 3” had been filmed in his dimerciless. “Let’s do our part to help our existing businesses remain competitive with other states in the South.”
Industry finishorses dispute that every dollar in tax incentives creates $6 in economic activity. The Department of Revenue has set up a reduce economic return, however, and finishs the program is a net drain on the state’s cgives.
Emerson disputed Wednesday that the film incentive amounts to a subsidy of one industry by all the others. Another lawcreater noticed that much of the money finishs up in California. Rep. Danny McCormick, a Reaccessiblean from Oil City, said the program is “corporate welfare” for delightment companies.
“If they’re such fantastic, accomplished businesses, why do I have to donate them taxpayer money?” he asked. “You would have to be a bloomin’ idiot to get $180 million of somebody else’s money and not be able to create some jobs.”
Though the House voted overwhelmingly to reshift the film accomprehendledge, some in the startantity said they hoped the Senate would get a contrastent approach.
Rep. Emily Chenevert, a Reaccessiblean from Baton Rouge, said that talks were underway to alter the legislation to help uphold the industry.
“The regulateor, I depend, sees the impact of this industry,” said Chenevert, who toiled as a line creater and production regulater before running for office. “I am brave today we will get to an consentment that helps to persist the industry and helps to defend us competitive… This is not equitable about those in Hollywood. This is about the local communities and the businesses it touches.”
The state economic increasement office has previously said that it will give more confinecessitate incentives next year, which would not be concentrateed at any particular industry.
“If the decision is made to alter the current tax incentives, we are brave the resulting business-cordial tax set up will advantage the film industry,” Film Louisiana said in a statement Wednesday. “It recontransients $1 billion a year and impacts citizens, towns and cities that legislators proset uply appreciate and want to see flourish.”
