NEW ORLEANS – Louisiana’s Senate Bill 232 (SB232), designed to significantly boost the Louisiana Filmmaking Industry, successfully passed the House on May 28 with a 94-6 vote and now awaits Governor Jeff Landry’s signature. Bill 232, spearheaded by Senator Adam Bass (R-District 36), introduces significant reforms to the state’s Motion Picture Production Tax Credit program. The Louisiana Filmmaking scene is set to flourish with these new legislative changes.
Key provisions of the Bill include an enhanced tax credit structure, removal of caps, and discretionary oversight, all of which are designed to boost Louisiana’s attractiveness as a destination for filmmakers.
“This is great news for the state of Louisiana in the film industry,” said Jason Waggenspack, President of Film Louisiana. “This is going to make our industry much more competitive and is going to allow us to strategically work with LED on making changes to the programs to help us incentivize more production to come to the state.”
The tax credits are expected to attract filmmaking and boost Louisiana as a preferred destination for high-end filmmaking projects.
Enhanced Tax Credit Structure
The enhanced incentives aim to not only boost the local economy but also to solidify Louisiana’s reputation as a hub for innovative filmmaking. Specifically, SB232 authorizes a tax credit of up to 40% for approved film production projects and includes a 25% base credit, with potential uplifts such as a 15% increase for employing Louisiana residents, a 10% boost for productions based on Louisiana screenplays, and a 5% addition for visual effects work conducted within the state.
- Base Tax Credit: The base tax credit is 25% for qualifying in-state production expenditures. This is already highly competitive nationally, offering a strong financial incentive for filmmakers to choose Louisiana.
- 15% Uplift for Local Labor: Productions that employ Louisiana residents are eligible for an additional 15% credit on those labor costs. This encourages productions to hire locally, reducing their staffing costs while boosting local employment.
- No Per-Person or Per-Project Caps: Previously, there was a cap of $3 million per individual and $20 million per project. SB232 removes these limits, enabling large-scale productions to fully benefit from the incentives. This change directly targets high-budget projects (like major motion pictures or streaming series) that previously might have bypassed Louisiana.
- Stackable Uplifts: The enhanced tax credit system allows productions to stack multiple uplifts. For example, a production based on a Louisiana screenplay could earn an additional 10%, and if it involves in-state visual effects work, it could add another 5%. Combined, a production could qualify for up to 40% in total credits.
Removal of Caps
The bill eliminates the per-project and per-person payroll caps. Previously, productions could only claim tax credits on up to $20 million of total project spending and up to $3 million for payments to any single individual, limiting the full benefit of Louisiana’s tax incentives for big-budget productions, like blockbusters or high-end streaming series, and highly paid actors.
This means a large-scale production with a $100 million budget or a major star earning $10 million, for example, would have only been able to claim credits on $20 million of the total budget and $3 million of that actor’s pay, greatly reducing the incentive’s value for those high-end projects. Margot Robbie reportedly earned $12.5 million for “Barbie” while Leonardo DiCaprio was paid $30 million for “Killers of the Flower Moon” and Joaquin Phoenix earned $20 million for “Joker: Folie à Deux”.
Discretionary Oversight
If SB232 is signed into law, Louisiana Economic Development (LED) will be granted the authority to evaluate applications based on factors such as economic impact, statewide distribution of funds, and alignment with the state’s best interests.
It will also be tasked with drafting the new administrative rules subject to legislative oversight.
Right now, LED primarily plays an administrative role in the state’s Motion Picture Production Tax Credit program, limited to verifying that productions meet specific statutory requirements. The new legislation gives LED discretionary authority to assess applications based on broader economic factors, such as projected impact and statewide benefits.
Implications for the Film Industry
If signed into law by the Governor, SB232 will position Louisiana as one of the most competitive states for film production incentives in the United States.
- Georgia offers a 20% base tax credit with an additional 10% for including a promotional logo, totaling up to 30%. However, Georgia’s credits are transferable but not refundable.
- California provides a 20-25% tax credit, with specific uplifts for certain production types and locations. California’s credits are non-transferable and non-refundable for studio productions, though independent productions may transfer credits.
Louisiana’s combination of high credit percentages, refundable credits, and the removal of caps makes its system more competitive.
In addition, the incentives for local labor are a direct boost to the state’s workforce, leading to increased employment opportunities in film and supporting industries such as set building and fabrication, catering, hospitality, and transportation.
Governor Landry has expressed support for SB232. Once signed, the new provisions will apply to applications submitted on or after July 1, 2025.
