Louisiana Film Tax Credits Spur Record Growth in 2008
Midway through 2008 it appears that Louisiana will easily surpass the record film production numbers set in 2007, according to the state film office.
At the mid-year point officials report that more than 50 productions with a total value of approximately $300 million had already applied for state certification. At this pace 2008 will easily eclipse the record set last year.
“The office hasn’t closed the books on all film and TV projects from 2007, but the value exceeded $500 million,” said Sherri McConnell, who heads Louisiana’s Entertainment division. There were 53 entertainment productions filmed in Louisiana in 2007 and 26 in 2006.
Louisiana’s Film Tax Incentives
Most industry participants agree that Louisiana’s film tax credit program is the driver behind the growth. While Louisiana’s rich culture and unique history has always attracted its share of films, film production has now become a major industry in the state.
Louisiana’s film tax credit programs create incentives for producers to maximize the amount of money spent producing a film in the state. Producers can receive a tax credit of up to 25% (now currently 30% as of July 2009) of the total production budget over $300,000 spent in Louisiana. Film companies can also maximize their labor costs by taking utilizing a larger percentage of Louisiana workers in their productions. The Labor Tax Credit allows for a tax credit equal to 10% of the Louisiana payroll used on a production.
Increasing the “Louisiana Spend”
Film producers are quickly figuring out the benefits of doing business in Louisiana. The percentages of production budgets being spent in Louisiana are increasing every year, according to the Louisiana Film Office.
“We’ve seen the difference go from 35 percent on the high end of all the production dollars being spent in state to 85 percent of all production dollars being spent in state,” said McConnell, whose office also oversees music, digital media and live performing arts tax credits.
Film-related jobs are also on the rise in Louisiana. According to an ERA study this segment is growing at a rate of 23% per year. This job growth has been critical to the growth of the industry, which requires highly skilled workers that earn good wages.
FBT Film Offers “Turn Key” Production Company Support
FBT Film and Entertainment offers a full range of film production support services including Louisiana film tax credits, underwriting films and studio projects, insurance, banking and more. With all of these services FBT Film is your premier “turn key” film production partner in Louisiana. If you would like to speak to our New Orleans team please call Lenny Alsfeld at 504-584-5888 or James Brooke in Los Angleles at 310-472-8750.