Lawmakers Consider Changes To La. Film Tax Break Program

BATON ROUGE, La. (AP) — Two New Orleans-area lawmakers have opened conversations on scaling back Louisiana's  generous film tax credit program.

Ideas presented Wednesday to an entertainment industry advisory commission would cap the program's costs, reduce covered expenses and tweak rules to combat fraud.

Tax credits for film and television productions helped cultivate a new industry in Louisiana. But the program costs significantly more to the state treasury than it returns. With Louisiana struggling to close a $1.6 billion budget gap, lawmakers are starting to question if the spending on "Hollywood South" is too much.

State Sen. J.P. Morrell and Rep. Julie Stokes have released draft proposals to change the program. Changes proposed by Morrell include a $300 million annual cap on the tax breaks and limits on the salary costs that Louisiana will subsidize.

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