Louisana senate votes to keep tax credit, lowers cap

The Louisiana senate committee has voted to keep the state's film tax credit with a lower cap.

Last week, the state house voted to terminate the film and TV tax incentive program as part of a broader tax reform, which guts incentives in an effort to plug revenue shortfall as the state reduces corporation tax and imposes a flat 3% income tax.

In addition to cutting the film incentive, which was set to expire in 2031, the bill proposed by the house eliminated credits towards the restoration of historic structures. 

Industry figures, such as Curtis '50 Cent' Jackson and Film Louisiana president Jason Waggenspack, and civilians alike spoke out in favour of keeping the credits which they say are integral to keeping the film industry in Louisiana thriving. 

On Tuesday, the Senate Revenue and Fiscal Affairs Committee voted to keep the credits but lowered the cap from $150m to $125m from January 1, 2025.  The residual claims cap was also lowered from $180m to $125m.

Further amendments state that projects applying on or after January 1, 2025 may not transfer credits to the Department of Revenue, and shall be only utilised to offset income tax on a return; and that if a production does not use the full $125m in any given year, the balance will roll over to the following year. 

The budget still needs to be approved by the full senate before being signed by state governor Jeff Landry. 

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