The following is an open letter sent to Biz from Jason Waggenspack, president of Film Louisiana, on Monday, Nov. 18 in response to an article examining the return on investment of film tax incentives published on Nov. 15, 2024.
Biz New Orleans’ recent piece about the film industry in Louisiana was missing key data and perspectives that clearly define the outstanding economic value film brings to our state. The film industry represents both motion picture and television production.
Quite simply, film is a perfect example of Louisiana’s creative culture at work. For every $1 of state credits, $6.12 is spent in economic development.
We represent 10,000 direct jobs with average salaries of $65,000 per year, and $350 million in payroll for Louisiana residents benefiting from productions occurring in-state. On average, our industry spends $1 billion a year with local Louisiana businesses. And that’s not just in major population centers. Nearly half our state – 33 parishes – can boast at least one production in the last five years, even considering the pandemic and the strike.
Film is a major investor in universities because there’s no place like home, and we want to keep our young people in Louisiana. We’ve given $9.1 million to educational film programs, and we’re actively reversing the brain drain through 18 higher education and workforce development resources across the entire state.
Film impacts Louisiana’s tourism industry immensely, with visitors selecting Louisiana cities they see on television and in films. The advertising value tourism derives from worldwide exposure of our state as the setting for so many productions is immeasurable, but to give you one example, research shows the advertising value of Steel Magnolias was $9.7 million, and it is routinely identified as the draw for visitors to Natchitoches. According to a report conducted by MDRG (and released by Louisiana Economic Development) the television and film industry continues to have a significant impact on both perceptions of Louisiana and the likelihood to visit. MDRG estimates the direct contribution of the TV and film industry to Louisiana’s total tourism revenue to be as high as $1 billion, with significant additional revenue sources not yet estimated.
In the 2023 Louisiana legislative session, State Auditor Michael Waguespack testified, “Overall, the Motion Picture Tax Credit Program appears to have a positive impact on the state’s economy because it generates more household income than it costs the state.”
Louisiana was the first to entice major film productions away from Hollywood with tax incentives built to foster sustainability through deep investment in infrastructure and workforce development. Since its inception, 40 other states including California itself, have introduced programs to try to compete with the success Louisiana has achieved. Harming the program now could set us back in the fierce competition for this lucrative, creative industry.
Tax incentives have direct and measurable impact, particularly when television production brings long-term activity to Louisiana. We shouldn’t overlook short-term influxes such as film production either. Similar to three days of Taylor Swift or one Super Bowl, the filming of one independent film—not to mention a blockbuster major motion picture—has astounding and long-lasting economic impact on our state and the towns that host these productions.
Probably the most important fact about the Louisiana film industry tax credit is that it is a net revenue gain for the state government when all aspects of its value are considered. Only comparing the dollars in and out within a single year fails to consider the income and benefits of the productions in the years the state hosted them.
Bottom line – film gives back to Louisiana far, far more than it earns in tax incentives.
