Latest Louisiana Update . . .
Joseph Chianese
Member Posts: 135
It started in Louisiana, and it’s staying in Louisiana!
Final legislation passed yesterday (November 22, 2024) preserving Louisiana’s film and television tax credit program along with other modifications as part of a comprehensive tax reform package passed by the state legislature. House Bill 2 will now head to Gov. Jeff Landry's desk after being passed with a 90-9 vote.
Key points:
- The Louisiana Senate voted 38-1 to maintain the film tax credit program, reducing its annual cap from $150M to $125M.
- Initially, the House had voted to eliminate the film tax credit, along with other incentives, to offset revenue losses from proposed cuts to corporate and personal income taxes. However, following significant advocacy from industry stakeholders and local communities, the Senate reinstated the credit with the reduced cap.
- The film tax credit is credited with supporting approximately 10,000 jobs and generating $1B annually in economic activity within Louisiana. Industry leaders and local officials, particularly in areas like Shreveport, emphasized the program’s importance in attracting productions and fostering economic growth. Note, Curtis “50 Cent” Jackson is developing G-Unit Studios in the city, with the expectation that productions would be able to leverage the credit.
- Louisiana’s Senate committee initially proposed eliminating the refundability of all tax credits, which would have limited the benefit for out-of-state production companies with minimal Louisiana tax liability. This provision was later withdrawn, allowing the film tax credits to remain refundable, thereby maintaining their attractiveness to producers.
- The preservation of the film tax credit occurred within a larger tax reform initiative led by Governor Landry, aiming to reduce corporate and personal income taxes to enhance Louisiana’s competitiveness. The reform package also includes:
Corporate and Personal Income Tax Cuts:
- Corporate income tax rates were reduced to a flat 5.5%, down from a multi-bracket system with rates as high as 7.5%.
- Personal income tax rates were simplified to a flat 3%, aiming to improve the state’s business climate and reverse population decline.
Sales Tax on Digital Goods and Streaming:
- A sales tax was imposed on digital goods and services, including streaming subscriptions, projected to raise approximately $40M in annual revenue.
- Similar adjustments were made to the historic preservation tax credit, with its cap lowered to $85M
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