Film tax credit under fire

Louisiana’s film tax credit program came under fire Monday in a Senate committee that has for the past month systematically reviewed tax giveaways and incentives, looking for savings and inefficiencies.  
Proponents of the Motion Picture Investor Tax Credit, which gives a tax break to those companies filming movies in the state, lauded the program as a job creator and economic catalyst for Louisianans. Many advocates for the program cited 13,000 jobs created by the industry since the incentive began.  
But members of the Senate Revenue and Fiscal Affairs Committee blasted state’s return on investment in the program, suggesting the movie industry comes to the state only temporarily to take advantage of Louisiana tax dollars before leaving for greener pastures.  
Louisiana Economic Development Secretary Don Pierson conceded the state receives only 23 cents back on every dollar it spends on the film tax credit program.  
Senators Jay Luneau and Neil Riser painted the credit as a wasteful use of state dollars.  
“We can’t keep giving this money away,” said Luneau, D-Alexandria.  
“How much money should the state lose to keep ya’ll here?” Riser added.  
But, Pierson added, local cities and parishes may see a higher return on investment -- possibly as high as $4.50 on the dollar.  
Louisiana Film and Entertainment Association President Robert Vosbein insisted the program is an economic benefit to the state, and especially to those who get jobs in the field.  
Vosbein said the program has “trickle-down impacts,” and each film job creates the equivalent of two more jobs.  
But committee members questioned the validity of the numbers discussed, and pointed to the mountainous budget deficit the state faces, likely in a special session. Riser said he hopes to see some of the tax credits the committee has reviewed taken up in the special session.  
Since last year, when the Legislature capped the film tax credit program at $180 million per year until 2018, the industry has experienced a “steep” decline in production, Pierson said.  
Many of the advocates for the program pointed out Georgia, which does not cap its film tax incentive, has seen a rush of film production. Canada is another promised land for the industry, with its favorable dollar exchange rate. 
Louisiana’s cap on the program doesn’t limit the amount of credits the state can write. It only affects the amount of money the state is willing to dole out for the program each year, currently at $180 million. If companies are willing to wait an extra year or two, the annual cost of state movie credits could grow significantly beyond that point.  
Sen. Troy Brown, D-Napoleonville, said part of the reason the Legislature capped the program is because the industry could not provide accurate information on the program and its effects.  
Herbert Gaines, head of Big Easy Studios, said Louisiana has been part of the conversation in the past for studios looking for a place to shoot, even in the “competitive market” of film, especially as other states offer better and better incentive programs.  
“Studios now view Louisiana as a risk they’re not willing to take,” he said.