Jason Waggenspack from Film Louisiana focused on the state’s film tax incentive program, which has been instrumental in driving film production to Louisiana since its inception in the mid-90s and its significant expansion in 2002. This program has made Louisiana a leading destination for film production, attracting nearly 3,000 projects and generating almost a billion dollars in sales. The program’s economic impact is substantial, with every dollar spent by the state returning $6.32 to the local economy.
Waggenspack explained that the perception of the program costing the state money arises from the nature of incentives. The state provides financial incentives to attract businesses, which are then evaluated based on the tax revenue they generate. However, the broader economic benefits, such as increased household income and local spending, often outweigh the direct tax revenue. For instance, the program generates $360 million in household income annually for Louisiana residents, compared to the $180 million the state invests.
The stability and predictability of the tax incentive program are crucial for maintaining and attracting film production. Past disruptions, such as the freeze on the buyback program in 2015, caused instability and a decline in production, highlighting the importance of consistent support for the industry. Despite these challenges, the program has rebounded, with a significant surge in activity post-COVID in 2022.
Waggenspack emphasized the need for a balanced approach in the state legislature, supporting both new business initiatives and existing successful programs like the film tax incentive. Maintaining a favorable business environment is essential for keeping Louisiana in the top five states for film production. The ongoing legislative efforts aim to ensure the program’s continued success and its positive impact on the state’s economy.