Film Industry Calling For Jindal To Veto Film Tax Credit Cap
It's the plot of many a Hollywood blockbuster movie. It's the way we in the media know how to find the truth. It works in just about any situation when you want to know what the real motivation is. What is it? It's called "follow the money". If you follow the trail of cash and who is getting and who is giving you can usually figure out just about any scenario.
Well this isn't a big budget movie but it is about the film industry in Louisiana. The recent session of the Louisiana Legislature in an effort to close a huge budget gap voted to limit the tax credits that are made available to the film industry in the state. As you might imagine those that make their money of in state productions are a lot disappointed in the legislation.
There also appears to be a bit of a loophole in the legislation which at best, for the film industry, could render the entire law unconstitutional or totally void. The second best thing which would lead to a similar outcome is a veto of the bill by Governor Jindal.
The loophole in the legislation is that it called for a limit on how many tax credits can be redeemed in a year. It did not limit the amount of tax credits that could be issued. Some would argue that deciding who does and who does not get to use their tax credit would be unfair, something government is not supposed to be according to the constitution.
Others argue that Louisiana's growing film industry would be irreparably harmed by this legislation. That film houses and production companies would take their business elsewhere instead of filming in Louisiana. Those proponents argue that taxes collected, monies spent on production cost, lodging and food, plus tourism dollars will be jeopardized.
Regardless the bill is on Governor Jindal's desk and if he ever makes it back to visit in Louisiana one day he might just sit down and do his job for a few minutes. The film industry is hoping he will veto the legislation concerning film tax credits. Fans of higher education and state programs that might be cut due to a lack of funding are hoping to see Mr. Jindal pick up his pen and sign the bill.