Louisiana film tax credits are facing major setbacks.
According to reports, Louisiana’s film tax credit program is likely to face new restrictions. However, details on those new limitations have not been revealed.
Nola.com reports that the Louisiana Senate and House have passed different “caps” on the state’s film tax credits for the budget cycle starting July 1. The two chambers of government will probably enter into negotiations over their differences this week.
As of right now Louisiana does not have a cap on their film tax credit, which means the state is required to fulfill their commitment as soon as a production decides to film in Louisiana.
From Nola.com
The House voted to impose a $200 million cap on motion picture tax credits annually, with the caveat that extra incentives could be offered to native Louisiana movie and television producers.
The Senate leadership didn’t think this was restrictive enough. The upper chamber voted for a $180 million annual cap and removed all incentives for indigenous Louisiana productions from the original House movie tax credit bill (HB 829).
The Senate cap also not only applies to credit issued in the future, but credit that producers hold from previous productions. If people with credits issued from previous years file for $180 million worth of tax relief, there would be no money left over to issue new credits in a given year under the Senate’s proposal. (The $200 million House cap only applies to credits issued in the future. Unlike the Senate, the cap would not apply to credit already circulating.)
This will basically halt all productions in Louisiana.
But, it may make sense why congressmen and women are fighting to cut back on film tax credit.s According to another report by The Advocate, Louisiana is forced to increase the cost for a car title certificate to help fund the state police department.
The extra charge would generate an estimated $60 million annually to plug a potential hole in the State Police budget as it loses some Transportation Trust Fund dollars.
The new fee was added in a Senate committee to an innocuous House-passed bill, House Bill 833, that would make technical changes in motor vehicle law.
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