Louisiana’s film industry is bracing for potential changes to the tax credits it currently enjoys as lawmakers debate changes to the state’s tax code.
Film Louisiana President Jason Waggenspack says reducing or eliminating the tax breaks could put a major damper on the film industry in the state.
“I can assume that if you make changes to any program or anything that’s going to potentially continue to enhance business in one specific area, especially in the State of Louisiana, we are going to see a reduced amount of that business,” says Waggenspack.
Governor Jeff Landry is pushing for lawmakers to eliminate many different tax breaks to lower the state’s income tax rate on individuals and businesses.
The degree to which Louisiana’s film industry boosts the state economy depends on who you ask and who you believe.
“For every $1 out from the state in tax credits, there was $6.32 that was put into the Louisiana economy,” Waggenspack says. “On average, the film industry generates one-billion — with a “B” — dollars of sales to the State of Louisiana.”
But a Louisiana Economic Development study shows the tax film tax credit program only yielded a return of 39 cents in tax revenue in fiscal year 2022.
Up until recently, the film industry was synonymous with Los Angeles. However, Waggenspack points out that in 2002, Louisiana was one of the pioneers in attracting the motion picture industry to the state and out of California; and as a result, he says the state ranks fourth in the country in film production.
“We’re the first state to offer a generous tax credit program anywhere in the U.S.,” says Waggenspack, “and now 40 states have copycatted our program, and we’re still ranked in the top five.”
Waggenspack says there’s no shortage of people in the state who want to break into the industry.
“There’s 89,960 Louisiana residents registered in his casting file (at MyCastingFile.com), which means that there are a massive amount of people in the State of Louisiana that use supplemental income like being an extra on a film set or trying to enhance their career to be a full-time actor,” Waggenspack says.
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