Louisiana’s film tax credit program, a cornerstone of the state’s “Hollywood South” appeal, is facing potential elimination under proposed tax reforms by Governor Jeff Landry. With this change, Louisiana’s longstanding draw for the entertainment industry—especially major studios and independent filmmakers—is at stake.

The Motion Picture Tax Credit Program, established in 2002, has spurred the development of a thriving film industry in Louisiana by offering generous incentives. In 2022, Louisiana allocated $180 million in film tax credits, generating $360 million in payroll and $600 million in sales, according to industry leaders. This impact highlights the essential role tax incentives play in keeping Louisiana competitive as a top production destination, attracting films and series like Django Unchained, NCIS: New Orleans, and Queen Sugar.

“The film industry is a manufacturing industry that drives high-paying jobs for skilled workers,” says Trey Burvant, SVP of Operations at Second Line Stages in New Orleans. “Our tax incentives support the workforce needed to deliver exceptional productions.”

Despite these benefits, critics argue that lower income tax rates would make Louisiana more appealing to other businesses, challenging the film tax credits’ long-term value. Louisiana’s Department of Revenue recently reported that every dollar spent on the film tax credit program increased the state’s GDP by only 60 cents, adding fuel to calls for reform.

With the future of film tax credits in question, Louisiana’s production industry faces significant uncertainty. Louisiana Economic Development Secretary Susan Bourgeois has hinted at a new package of business incentives planned for 2025, which may reshape the landscape of tax benefits across various industries, including film. However, the question remains: will these new incentives retain the same appeal and reliability for the entertainment industry?

For now, the debate continues in Baton Rouge, with Louisiana’s film sector hoping to keep its competitive edge. Film incentive programs shape the very fabric of location choices for production studios, often tipping the scale toward regions with robust support for filmmakers.