A bill to extend the state’s film tax credit passes in the House. The legislation renews the current tax credit for a decade when the current incentive expires in July of 2025. Louisiana Economic Development estimates the incentive has a $6.00 return on investment for every dollar spent, but Mandeville Representative Richard Nelson said an independent study shows the ROI is only $.23.
“It is a terrible, terrible return. That is why we put a cap on it, to begin with. If nobody would accept that for themselves individually, I would say do not put that on the people of Louisiana either,” said Nelson.
New Orleans Representative Mandie Landry said the film industry is not only important to her district but also to those Louisiana residents whose livelihood depends on the entertainment industry.
“There’s over $350 million in payroll taxes paid, about 10,000 jobs. I know so many people in the movie industry, they use to wait tables and now they have really steady jobs, they have health insurance,” said Landry.
Chalmette Representative Ray Garofalo said he doesn’t believe the ROI that Nelson referred to is accurate, he said it’s underestimated especially when you look at the money a production spends locally, for example, hotels, restaurants, catering, dry cleaning, and more.
“And I believe it’s helping our students, I believe it’s helping our families, I believe it’s helping the State of Louisiana in general and could fill the void that we saw from the loss in the oil and gas revenues,” said Garofalo.
The bill was amended to continue the $150 million annual cap and House Bill 562 passed in the House on a 74-24 vote and heads now to the Senate.
The Louisiana Film Entertainment Association doesn’t like an amendment added to the bill that makes the tax credit less lucrative over time. The Advocate has more on the amendment.
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