We Can't Afford Hollywood Handouts

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We Can’t Afford Hollywood Handouts
MAR 21, 2017 BY TORI VENABLE
Film subsidies cost taxpayers $180 million annually.

BATON ROUGE – Americans for Prosperity – Louisiana (AFP-LA) is calling on lawmakers to stop Hollywood handouts at the expense of taxpayers. The film subsidy program costs taxpayers $180 million annually, and has taken over $1 billion out of Louisianans pocketbooks over the past decade. Subsidies to the film industry are a bad deal for taxpayers; Louisiana gets a return of just 17-23 cents for every dollar invested.

Louisiana gives film productions ‘tax credits’, which are often sold back to the state for 85 cents on the dollar. Most films productions do not have a corporate tax liability, which leaves the state writing checks to productions that do not pay Louisania taxes.

In 2015 the legislature capped film subsidy pay-outs for three years at $180 million, but neglected to cap the amount of film subsidies that could be awarded. Hundreds of millions of dollars have been awarded that have yet to be claimed. Lawmakers are set to take another look at the film subsidy program during the upcoming legislative session. Senator Jay Luneau signaled his intent to do away with the program altogether today.

“The Louisiana legislature should prioritize keeping money in the pockets of taxpayers over Hollywood handouts,” said AFP-LA State Director, John Kay. “This is $180 million a year that would be better spent on our state’s actual budget needs.”

“Our state gets a negative return, losing money on every dollar doled out. Before even one tax increase is considered this program should be eliminated. That’s $180 million off the top that can be cut instead of raising taxes. Senator Luneau should be praised for his courage to tackle this handout.”

“This is just another verse in the tax and spend song and dance for which the state capitol has become well-known.”

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