LOUISIANA’s FILM TAX CREDITS BRING INCOME & JOBS TO THE STATE
Much needed love for the state of Louisiana comes from the Hollywood film community as they travel to the state to produce movies. When Hollywood films in the state, they spend money and employ local residents. The current tax incentives are slated for “sundown,” meaning their time is nearly up. Therefore, the state legislature must reinstate them and, better yet, increase them to compete with other states with incentive programs.
Please show your love. Support Louisiana’s Film Tax Incentives by contacting Louisiana legislators and the Gov. Ask them to continue the incentives or increase them so the state can continue to gain much needed jobs and revenue.
The economic impact study completed by Economics Research Associates – commissioned by the Louisiana Economic Development Department – presents ample evidence to support the success of the film industry incentive program. These numbers clearly bolster the argument to increase our production incentive to 30% to remain competitive.
These are the facts:
1. In 2007, the year that $115 million in tax credits were paid, the economic impact to the State of the industry as a whole was $763 million.
2. Employment in Louisiana’s film industry increased at a compound annual growth rate of 22 percent from 2001-2007. This compares to a national growth rate of 1.8 percent annually. Wages have increase at an average annual rate of 8.2%, much faster than inflation.
3. In 2007, the total spend of the film industry in Louisiana supported 3,310 jobs directly and an additional 2,920 jobs indirectly. That is 6,230 jobs in Louisiana created because of the film incentive program.
4. In 2007, the total value added to the Louisiana economy as a result of qualified spending on motion picture productions was $303.1 million.
5. According to the most recent MPAA economic impact report, the film industry currently provides 2.5 million American jobs with an average salary of $74,700. That is $41 billion in wages to American workers, $13 billion in income and sales taxes and $13 billion in trade surplus.
ERA goes on to point out several significant indirect impacts of film production – those impacts that are not immediately evidenced by economic data:
1. “Perhaps the most notable secondary impact associated with film production in increased tourism. An exported film product helps to sell the culture.” Isn’t this especially notable in a State which is so dependent upon the tourism industry? Especially as tourism has suffered so significantly from a series of debilitating hurricanes?
2. Infrastructure impacts – “film production occasionally creates infrastructure that is left behind for future utilization”. IE, the wave pool left by Disney, the Year One set left by Sony – these were incredibly expensive pieces of infrastructure paid for by studios and left to be re-utilized on future projects – they represent many millions of dollars in capital investment.
3. Creation of Industry Clusters – “There is a strong, statistically significant correlation between vibrant and creative city milieus and the presence of high-paying knowledge intensive industries. …
Here is another fact: we are losing the film industry in Louisiana:
1. According to the Louisiana Film Office, last April there were 20 projects prepping and filming in Louisiana. This April there were 6.
2. There are no projects currently shooting in Shreveport, one ultra low budget feature shooting in Baton Rouge and five projects shooting in New Orleans.
3. According to local union representatives, local producers and production companies, there are “no projects in the pipeline” for Louisiana at this point. That includes New Orleans, Baton Rouge, Lafayette and Shreveport. NO PROJECTS ON BOARD FOR LOUISIANA.
4. Between them, Michigan and Georgia have approximately 30 films prepping, shooting or slated to start. 20 in Georgia alone.
“Maintaining” the film incentives is basically telling the studios, independent producers, vendors and film industry workers that it is over in Louisiana. That means a loss of $300 million in total value added to the economy and the loss of 6,000+ jobs. This does not make any sense. We need a 30% Production Incentive to remain competitive.
