Louisiana Film Incentive Law for Motion Picture Producers
Various rules and regulations are in place throughout Louisiana to provide protections, and tax credits, for filmmakers that bring motion picture productions into the Bayou State. In fact, those interested in bringing motion picture production to the Bayou State could benefit from understanding how the Louisiana film incentive law for producers reduces taxes and provides tax credits for various expenditures. To help you understand how Louisiana film incentive laws could benefit your production, we’ve listed some key benefits below.
The Louisiana Blue Law
Filmmakers stand to benefit from the Blue Law in Louisiana. It provides a unique incentive for those who choose to bring their motion picture and television productions outside the major cities and into smaller towns of Louisiana.
The Blue Law extends Louisiana Legislature’s tax committee’s prior agreement. Which provides motion picture tax credits and will continue to provide such credits until 2028.
Also known as Senate Bill 173. This credit provides special tax credits for those who bring filmmaking into various cities and towns throughout Louisiana.
As such, filmmakers may either choose to subtract the incentive from their tax liability of their own Louisiana taxes. Or they may sell the credit back to the state in which they will receive a check for 90% of the face value of the expense.
Louisiana’s Motion Picture Production Program
Another Louisiana film incentive law that provides credits for those producing motion pictures is provided by the Motion Picture Production Program which offers a Motion Picture Production Tax Credit.
This tax credit provides a 40% tax credit on in-state production expenditures for motion pictures that are produced in the Bayou State.
Under this particular credit filmmakers can benefit as follows:
- 40% tax credit that includes a 35% base credit, 10% increase for screenplay productions, 5% increase if outside the New Orleans metro Area.
- A $50K minimum in-state expenditure for screenplay productions.
- $300K minimum in-state expenditure for eligible productions.
- Tax credits can be transferred back to Louisiana for 90% of face value minus a 2% transfer fee.
Tax Credits for Full Time Jobs
In addition to the previously mentioned Louisiana film incentive law for motion picture producers. There is also a law that provides tax credits for qualified entertainment companies. Which provide full-time, permanent jobs in the state.
Furthermore, this law is the only of it’s kind in the entire country. Under it, companies directly or indirectly engage in the distribution of or development of audio or video entertainment content for public consumption. This creates five new jobs in the state.
They can receive:
- 15% credit for each new job that pays wages between $45K and $66K annually.
- 20% credit for each new job that pays wages greater than $66K annually.
- Maximum qualifying salary of $200K per person, annually.
- A maximum amount of $1M in credits per year for the filmmaker or production company.
In Summary
Louisiana is taking steps and strides toward providing a number of film incentives. The Louisiana film incentive law for motion picture producers.
And other laws and regulations providing credits and incentives help filmmakers and production companies. Finally, while equally helping the Bayou State by bringing in jobs and revenue through motion picture production projects. It’s a win for all involved!
