Film incentive supporters pushing back against changes

The Jindal administration is proposing a change to the state’s film production incentive program, whereby salaries above $1 million would not count as qualifying expenses eligible for tax credits. “The changes that are being suggested right now would have a dramatic impact on the industry,” says David Tatman, executive director of the Louisiana Film & Entertainment Association. He argues the $1 million cap is far too low. While his association hasn’t made a specific counterproposal, Tatman says a more realistic number could be derived by side-by-side comparisons with other states. When states such as New Mexico and Michigan scaled back their incentive programs, Louisiana picked up a lot of business; Tatman doesn’t want Louisiana to lose business to other states such as Georgia, for example. The association estimates the industry employs about 14,000 people in Louisiana, Tatman says. Department of Revenue head Tim Barfield says Louisiana still will have one of the most attractive film incentive programs in the nation, even after “tightening things up.” However, the full savings may take a while to materialize, as there are still outstanding tax credits that have been issued but not redeemed. Tatman stresses that the Jindal administration has generally supported the film business, and says industry representatives continue to discuss their concerns with administration officials. In a letter to the governor’s office sent Monday, State Sen. Elbert Guillory, D-Opelousas, says the proposal would be a “virtual death sentence to the industry.” —David Jacobs