Louisiana Film Production Credits 101

Posted on February 24th, 2016 by Leonard Alsfeld

Lights. Camera. Action!

If you hang around New Orleans for a few days, there’s a good chance you’ll hear this phrase or see camera crews in action filming a movie, TV show or commercial.

But before cameras ever roll, an incredible amount of work takes place behind the scenes from scriptwriters, producers, and yes, even tax credit brokers.

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Louisiana has earned its position as “Hollywood South” because of our natural resources such as filming locations, growing industry infrastructure and financial incentives which make it attractive to film in the state. Louisiana has always had great locations and production talent, but the financial programs are credited with tipping the scale and making Louisiana a top filming destination.

As an overview, production companies who film in Louisiana are eligible to receive tax credits based on the amount of money spent in the state on production. The tax credits which are generated from this program can be sold to others in order to help offset their Louisiana state tax liability.

How Louisiana Tax Credits Work                

Sometimes people confuse credits and deductions. However, credits are unlike deductions because they offset the taxes directly, rather than altering the income for which the tax is assessed. They will reduce your tax liability dollar for dollar.

There are a few important factors when buying credits to be aware of.

  • Be sure that you’re buying your credits at market rates, which fluctuates often. Financial institutions like FBT Film & Entertainment watch the market and change the purchase price as appropriate.
  • Additionally, all credits bought through FBT are certified by the state of Louisiana to make them valid, so be sure to go through a broker who offers this state certification.

So, how are Louisiana tax credits actually purchased?

It is a simple 3 step process:

  1. Buy credits which are certified by the state by contacting FBT.
  2. The Certificate of Ownership will be transferred to you. Attach this certificate when you file your taxes.
  3. Receive your rebate within 60 days!

How FBT Film and Entertainment Can Help Producers and Live Performers

We do more than help. We are with you from A to Z and everywhere in between.

We help you plan and execute your production or performance locally while maximizing your Louisiana spend. Our advice, as well as our connections all over the state, make us the best choice for your production and performance needs.