La. film industry pleased with tax credits
Published 12:00 am Monday, July 6, 2009
BATON ROUGE, La. (AP) — Louisiana lawmakers have offered Hollywood a gift, hoping that studios will continue to send in film crews to make moves and to pump money into the state’s economy.
That gift? Sweetening and making permanent Louisiana’s tax credit system.
The move was driven, at least in part, by fear that other states’ financial incentives would begin luring movie business away. And it came over some legislators’ concerns that Louisiana is getting into a no-end bidding war with movie-friendly states like Michigan and Georgia — potentially worsening their state budget woes.
One Georgia movie producer called worries of a bidding war unfounded.
‘‘I don’t think it’s going to continue being this competitive,’’ said Scott Tigchelaar, president of RiverWood Studios, an independent film facility in Senoia, Ga. ‘‘You get to the point where it’s no longer fiscally responsible’’ for states.
Louisiana’s Legislature approved two slightly different bills, though both propose raising the state’s current tax credit for movie makers from 25 percent to 30 percent. Both would keep it at 30 percent, eliminating a planned phase-down to 15 percent in current law.
‘‘They’re strong bills. They send the right message to the industry — Louisiana’s commitment to the industry,’’ said Lampton Enochs, owner of Louisiana Producers, a Shreveport-based movie production firm.
Where Gov. Bobby Jindal stands is unclear. Jindal initially supported keeping the credit at 25 percent and eliminating the phase-down to 15 percent. But, more recently, he has avoided specific questions about his support for several tax break bills approved by lawmakers.
Sen. Robert Adley, R-Benton, a sponsor of one of the bills, said he expects the governor to veto one and sign the other.
Signing either bill into law would reduce state tax revenue by $10 million a year beginning in the 2010-11 fiscal year, and by $100 million over five years, according to the Legislative Fiscal Office.
The legislation would grant movie producers a transferable 30 percent state tax credit on their expenses, such as catering, hotels, costumes, equipment, trucks and lighting. They get an additional tax break by hiring Louisiana workers.
Louisiana movie producers lobbied for increasing the credit to 30 percent, saying it would show Hollywood studios that the state is committing to the movie business.
Enochs expects the industry to be particularly attracted to the provision that keeps the credit at 30 percent permanently, saying it would encourage more long-term investments in sound stages and other permanent equipment.
While some competition among states, like Georgia and Louisiana, will probably continue, Tigchelaar said there’s little chance either state will lose badly in it.
‘‘I’m just happy to see the industry stay in the United States, personally,’’ he said. ‘‘If that means Louisiana and Georgia, that’s great, because neither Georgia or Louisiana can handle all of it.’’
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House Bill 898 and Senate Bill 245 can be viewed at http://legis.state.la.us/