The halls of the Louisiana State Capitol brimmed with energy and urgency as hundreds of film industry professionals gathered Sunday to advocate for the preservation of the state’s Motion Picture Production Tax Credit Program. This initiative, often credited with transforming Louisiana into “Hollywood South,” faces a critical threat under proposed tax reforms championed by Governor Jeff Landry.
The Senate Committee on Revenue and Fiscal Affairs convened to review the governor’s sweeping tax overhaul, which includes two bills aimed at establishing flat income tax rates—3% for individuals and 3.5% for corporations. To offset revenue losses, the proposal would eliminate numerous tax credits and exemptions, including the long-standing film tax credit program.
Film Tax Credits: A Proven Economic Engine
Since its inception in 2002, Louisiana’s film tax credit program has offered rebates of 25% to 40% on production expenses incurred within the state, capped at $150 million annually. This initiative has lured countless productions and generated a thriving local industry. Today, the film sector directly employs nearly 10,000 workers, with average salaries of $68,000, and contributes $2 billion to Louisiana businesses. Additionally, an estimated $2.5 billion in annual tourism revenue stems from the state’s prominence in film and television.
Supporters of the program argue its value extends far beyond its fiscal contributions. “Film = Jobs,” read the yellow stickers worn by set builders, actors, truck drivers, musicians, and other industry professionals attending Sunday’s hearing. Their presence underscored the program’s role in sustaining diverse careers across Louisiana.
The Stakes for Louisiana’s Economy
Critics of the tax credit program have raised concerns about its direct impact on state tax revenue, pointing to studies suggesting it reduces funds available for public services like higher education. However, proponents counter that its broader economic benefits far outweigh the costs. A 2023 analysis by the Louisiana Legislative Auditor’s Office found the program generates more household income than it costs the state, bolstering the economy even as it diminishes government revenue.
Dolph Federico of Pelican Events, a Kenner-based production company, passionately advocated for the program’s continuation. “Please, don’t forget the jobs that are here,” Federico implored lawmakers. “Take care of the people who are here first and then worry about the rest of it. I’ve got no place else to go, guys.”
Political Challenges Ahead
The proposed elimination of the film tax credit has sparked bipartisan concern. Senator Sam Jenkins of Shreveport highlighted the program’s track record, saying, “These are some incredible numbers that show a program is working well. When we have something that’s working well, we need to try to keep it.”
However, not all lawmakers are convinced. Some, like Senator Jay Morris of West Monroe, question the long-term viability of subsidizing private businesses. “State tax credits reduce the pool of revenue that lawmakers get to spend on state needs such as higher education,” Morris argued, adding, “Private businesses should not rely on government subsidies to stay profitable.”
Despite these challenges, industry leaders remain optimistic. Jason Waggenspack, president of Film Louisiana, emphasized the program’s widespread impact, noting that productions have engaged with 33 parishes across the state.
The Path Forward
As the debate continues, the stakes couldn’t be higher for Louisiana’s film industry. The Senate committee will reconvene Monday to deliberate on the proposed legislation. A two-thirds majority in both chambers is required for the tax overhaul to pass—a daunting challenge given the vocal support for the film tax credit from key lawmakers and industry advocates.
The outcome of this battle will shape the future of Louisiana’s entertainment landscape, determining whether it can maintain its status as a premier destination for film and television production or risk losing its hard-earned “Hollywood South” title.
