Louisiana’s New Entertainment Bill to Fuel Job Growth and Small Business Revenue

(Baton Rouge, Louisiana) - Over three decades ago, Louisiana sought to become a major player in the film industry becoming the first state to offer a film tax incentive in 1992. Ten years later, the state expanded the incentive with the Louisiana Motion Picture Tax Incentive Act which offered all incoming productions up to 40% on in-state expenditure, according to Deep South Studios.

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When you're putting together a major motion picture, tax incentives can really help out with the budgeting of the film, and plenty of studios took advantage of the tax incentives until 2015 when Louisiana finally put a cap on tax credits claimed at $180 million. The cap was further reduced in subsequent years and will max out the front-end and back-end caps to $125 million. The cap greatly reduced the amount of savings seen by the film industry who shifted to Georgia where there is no cap. Recently, President Trump placed heavy tariffs on overseas filming, which aimed to boost more productions in the United States.

What is Louisiana Senate Bill 232?

According to the Senior Director of Public Relations in conjunction with Film Louisiana,

Act 44 modernizes the state’s film incentive program by granting Louisiana Economic Development (LED) the authority to manage the program through administrative rules instead of state law. This change provides the flexibility needed to respond quickly to industry shifts, better negotiate with studios and attract a wider range of film and television projects to the state.

The change in oversight can help as market demands shift, and can streamline the process regarding making decisions to help bring in new business and movie productions. This will bypass state law, which as we are all aware, is not quite as adaptive to changing situations.

The $125 million cap will remain in place and has been extended until 2031 which will allow more predictability for production companies when considering long-term projects. Nothing is worse than working on a multi-year series only to have tax credits disappear preventing you from completing production and having to move to another area.

What The Bill Means for Louisiana Residents

The fact that Louisiana can improve the environment for Hollywood to continue working in our state is one thing, but what does that mean for the people of Louisiana? The effects can stretch beyond the usual opportunities for local crew, artists, actors, technicians and production teams.

Infrastructure and Employment Opportunities

Locations for production will need infrastructure, from lodging to food, transportation and more, similar to when other industries move into an area. Some locations have already established production facilities including The Ranch and production company G-Unit Films & Television in Shreveport.

Boost to Tourism

Tourism can also be impacted by the potential for the return of "Hollywood South" including highlighting areas of the state as part of productions that can later be visited by fans. Consider the series 'True Detective' that predominantly featured locations in Eunice, Erath as well as the Creole Nature Trail and Oak Alley Plantation. Fans of the show have made trips to these areas just to visit where the show was filmed. And let's not forget New Orleans which has too many featured locations to mention but definitely recognizable.

Read More: Top 7 Movies That Were Filmed In Lafayette

It remains to be seen whether Louisiana will recapture it's 'Hollywood South' title from Atlanta, but at least it gives the Bayou State a fighting chance when competing with other states for additional opportunities to bring much needed revenue in.