Louisiana Film Tax Credit Incentive Program Act 44: The 40% Credit Rebuild That Could Revive Hollywood South
Louisiana’s relationship with film tax incentives is the original American experiment in production subsidies the state adopted the nation’s first film tax credit in 1992, launched the modern version of its program through the Louisiana Motion Picture Incentive Act in 2002, and by 2013 had earned the official designation from the Los Angeles film office as the world’s busiest production hub. Then it nearly lost everything. Political infighting, spending caps imposed in 2015, stiff competition from Georgia and New Mexico, the pandemic, and the 2023 strikes reduced Hollywood South to a single active production by May 2025. The Louisiana film tax credit incentive program Act 44, signed by Governor Jeff Landry in June 2025, represents the state’s most aggressive attempt to reclaim its position increasing the base credit to 40 percent, eliminating per-project caps, and giving Louisiana Economic Development the flexibility to negotiate directly with studios. For anyone working in the market from casting directors to freelancers providing New Orleans videographer services Act 44 is the financial foundation on which the next chapter of Hollywood South depends.
The Act 44 Structure: What Changed
Act 44, effective July 1, 2025, made several structural changes to Louisiana’s Motion Picture Production Program. The base tax credit increased from 30 percent to 40 percent of qualified in-state production expenditures, including both resident and non-resident labor. Per-project spending caps and individual payroll caps were eliminated, removing barriers that had prevented Louisiana from competing for the largest productions. Administration of the program shifted from the Governor’s Office of Film and Television Development to Louisiana Economic Development (LED), giving the agency flexibility to negotiate with studios directly and adapt to industry shifts faster than legislative action allows.
The program maintains a $125 million annual cap on total credits issued, strategically allocated across production types: $95 million remains open for productions of any size, $15 million is reserved for independent film productions, $7.5 million for Qualified Entertainment Companies, and $7.5 million for Louisiana screenplay productions. Bonus credits remain available: 10 percent for Louisiana-created screenplays, 5 percent for filming outside the New Orleans metro area, an additional 5 percent for visual effects work performed in-state (if at least 50 percent of the VFX budget or a minimum of $1 million is spent on Louisiana VFX services), and up to 15 percent on the first $3 million of each Louisiana resident’s payroll. Combined, these bonuses can push the effective credit rate significantly beyond the 40 percent base.
The Historical Context: From Pioneer to Crisis
Understanding Act 44 requires understanding the arc that preceded it. Louisiana’s 2002 incentive legislation launched the modern era of state film subsidies and quickly attracted major productions. By the peak years of the early 2010s, the state’s incentives had expanded to 45 percent of qualified expenses, and the industry generated nearly $1 billion annually in the New Orleans region. Los Angeles officially named Louisiana the world’s busiest production hub in 2013. Then the political backlash arrived. Governor Bobby Jindal imposed spending caps in 2015, citing fiscal concerns about the program’s cost. The cap triggered a sharp decline in production activity as projects migrated to Georgia, which had overtaken Louisiana with its own aggressive, uncapped incentive program.
The 2017 program reform stabilized the credit at 25 percent with additional bonuses, and production activity partially recovered. But the system remained vulnerable to the combined shocks of the COVID-19 pandemic, the 2023 writers’ and actors’ strikes, and ongoing competition from states that offered simpler or more generous programs. By early 2025, Louisiana Entertainment reported only one active production in the entire state. Soundstages in New Orleans sat idle. Experienced crew members left for Atlanta, Albuquerque, and other markets. The industry was on life support.
How Credits Work: Cash Flow for Producers
Louisiana’s credits can be applied against the production company’s Louisiana income tax liability or transferred back to the state for 90 percent of face value (net of 88 percent after a 2 percent fee collected by the Louisiana Department of Revenue). This transfer mechanism effectively converts the tax credit into cash a critical feature for out-of-state production companies that have no Louisiana tax liability against which to apply credits. The minimum in-state expenditure requirement is $300,000 for most productions and $50,000 for Louisiana screenplay productions.
LED’s expanded authority under Act 44 allows the agency to negotiate customized deals with production companies that demonstrate long-term investment potential. This could include raising a production’s base credit or adjusting per-person payroll credits flexibility that allows Louisiana to compete for anchor tenants in ways that the previous legislative framework could not accommodate. Jason Waggenspack, CEO of Film Louisiana, described the change as transformational, noting that Louisiana is no longer just chasing individual movies but building a sustainable ecosystem.
The Sinners Test Case
The most visible proof of what Louisiana can deliver when the incentive structure works is Ryan Coogler’s “Sinners,” starring Michael B. Jordan, which shot extensively in the New Orleans metro area from April through July 2024. The $90–$100 million production spent nearly $68 million locally, hired hundreds of Louisiana crew members, filled hotels, and generated the kind of broad economic impact that incentive proponents cite as justification for the program. The film debuted to critical acclaim in April 2025, demonstrating that New Orleans can still attract and execute major productions when the financial structure supports it.
Whether Act 44 can replicate the Sinners experience at scale restoring the sustained production volume that once defined Hollywood South remains the defining question for Louisiana’s film industry in 2026 and beyond. The legislation provides the financial tools. The studios, crew base, and locations are ready. The competition from Georgia, New Mexico, the UK, and other jurisdictions is fiercer than ever. But Louisiana has one advantage no competitor can claim: it invented this game.
