In a pivotal move, the Louisiana Senate Revenue and Fiscal Affairs Committee has voted to restore the state’s essential film and television production tax credit, albeit with reductions to its annual cap. This decision provides a lifeline for the industry, which faced existential threats after two House bills initially proposed abolishing the credit altogether.
The revised bill, approved by the committee, trims the annual cap for the tax credit program from $150 million to $125 million, with a similar reduction for residual claims, down from $180 million. While these changes tighten the belt, the tax credit — offering base incentives of 25% and scaling up to 40% for qualifying projects — remains a competitive draw for producers seeking to shoot in Louisiana. The program’s extension through 2031 ensures a degree of stability for the local film industry.
Why This Matters for Louisiana’s Film Industry
For nearly two decades, Louisiana’s Motion Picture Tax Credit has transformed the state into a filmmaking powerhouse, affectionately dubbed “Hollywood South.” Productions flock to Louisiana for its diverse landscapes, skilled crew base, and enticing tax incentives. The program’s success extends far beyond film sets: it directly supports thousands of jobs and injects billions into the local economy through tourism, hospitality, and service industries.
But this year, Governor Jeff Landry’s sweeping tax reform agenda put the program on the chopping block. As part of his broader initiative to reduce Louisiana’s corporate tax rate — currently the highest in the South — and move to a flat 3% personal income tax rate, Landry proposed eliminating various tax incentives to offset lost revenue. This included not only the film credit but also other incentives like those for historic restoration, sparking outcry from multiple industries.
Industry Advocates Rally to Save the Credit
Jason Waggenspack, president of Film Louisiana and a stalwart champion for the state’s film industry, has been a leading voice in the fight to preserve the tax credit. As founder and CEO of The Ranch Film Studios, Waggenspack understands firsthand how vital the credit is to keeping Louisiana competitive in an increasingly global industry. “Today’s committee actions are just part of the legislative process,” he said. “While we wish everything could be resolved quickly, that’s not how legislation happens. We are confident our state is committed to keeping the film industry in Louisiana, and we’re optimistic for a resolution by the end of the week.”
Waggenspack and Film Louisiana mobilized an impressive coalition of filmmakers, studio heads, and industry workers to testify before lawmakers and engage in direct outreach. Sporting “Film = Jobs” stickers, these advocates emphasized the program’s tangible benefits: nearly 10,000 jobs supported annually, an average salary of $68,000 plus benefits for film workers, and over $2 billion in economic impact statewide.
What’s Next?
The amended bill now heads to the full Senate for approval before returning to the House for a final vote. From there, it will land on Governor Landry’s desk. While the battle is far from over, this latest development signals cautious optimism for the film community.
The Bigger Picture
Louisiana’s situation underscores a broader challenge facing U.S. states competing for production dollars in a global marketplace. As international hubs like Australia, the U.K., and Canada ramp up their incentives, states like Louisiana must balance the need to attract industry with broader fiscal priorities. The reduction of Louisiana’s tax credit cap may be a setback, but keeping the program alive ensures the state retains its seat at the table in the highly competitive world of film production.
A Call to Action
This legislative session is a stark reminder of the power of advocacy. Industry professionals rallied together to educate lawmakers on the real-world impact of tax incentives, proving that a united voice can make a difference. For Louisiana to remain a premier production destination, its leaders must continue to recognize and invest in the invaluable economic and cultural contributions of its film industry.
