Louisiana Economic Development estimates the tax incentives it oversees will be worth almost $473 million during the fiscal year that begins July 1.
That estimate does not represent proposed state spending. Instead, it’s an estimate of how much money the programs subtract from tax collections, which is incorporated into projections of how much money state lawmakers are allowed to spend, The Center Square reports.
The biggest line item is the motion picture tax credit, which allows up to $180 million in credits to be redeemed each fiscal year. The program has reached its cost limit every year since the cap has been in place, and officials said at a Senate Finance Committee hearing today they don’t think next year will be any different despite COVID-19 restrictions. Credits issued in one year are redeemed over multiple years, they said.
During the hearing, LED Secretary Don Pierson said that for every $1 the state invests, it gets $0.25 in return. The program’s impact, however, shouldn’t be measured only in state government revenue, LED officials say.
The most recent available LED-commissioned report on the program found each dollar of credit certified spurs more than $2 in state residents’ earnings and more than $6 in sales. Read the full story.