The House rejected an attempt to extend the state’s 180 million dollar film tax credit out to 2028 from its current sunset date of 2025. The bill began as an effort to incentivize companies to do more productions outside of New Orleans but evenly grew into a generalized extension of the program that failed on a 45 to 37 vote shy of the 70 votes needed for passage. 23 members were absent.
Opponents took turns hammering the bill on the floor calling the film tax program wasteful, expensive, and an example of the Legislature’s inability to prioritize needs like education. Mandeville Representative Richard Nelson said this year the Legislature could only offer teachers a meager 800 dollar pay raise that costs 60 million dollars a year while giving Hollywood 180 million a year. Nelson also noted the credit’s significant cost dwarfs that of other prominent state programs.
“We spend 110 million dollars a year on the entire Community and Technical System, 180 million dollars!” said Nelson. “So we’re willing to spend more money on Hollywood tax credits than we will spend on all of the Community and Technical College system?”
Opponents also cited a study that claims the program only generates 22 cents in revenue for every one dollar the state spends on the tax credits. They also circulated a report that showed over 60% of the credit goes to out of state companies and that many of the productions utilizing the credit are taking in more in credits than they pay out in payroll.
Supporters cited numbers from the Lt. Governor’s Office showing the program may be costly but has a 1.3 billion dollar annual economic impact on tourism as visitors from around the world come to see the sites of their favorite shows.
“You really don’t think it works that way? I invite you to come to West Monroe, come see Duck Dynasty, Swamp People,” said Columbia Representative Niel Riser. “Talk about it’s not impacting somewhere? In my little House district they filmed a movie, in Sicily Island Louisiana, and they spent significant money there. Who would have ever thought they would come there?”
Riser presented the bill on behalf of its author Slidell Senator Sharon Hewitt. The Senate approved the legislation in late April on a 34-3 vote.
Conservatives like Alexandria Representative Lance Harris countered that the credit is worth about half of the .45% sales tax extension that was approved by lawmakers in 2018.
“Your constituents are paying more for you to cover a deficit while you are allowing the movie industry to suck 100 million dollars out of the state,” said Harris. “Yes we pay out 180 million dollars a year to Hollywood but my constituents pay every day extra sales tax when they are buying the necessities of life.”
Friday Riser was quoted as saying that he would like to bring the bill back for another vote but is concerned the 70 votes needed for passage would be a tall order, especially with the House Speaker against the extension.
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