Louisiana: Repeal of film credit fails again, along with income tax reduction

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(The Center Square) - A proposal to repeal Louisiana’s longstanding motion picture production tax credit and slightly reduce the state’s individual income tax rate failed in committee Monday, marking the latest in a string of unsuccessful efforts to scale back the popular but costly incentive program.

The House Ways and Means Committee voted 10-2 against advancing the bill, which sought to terminate the film tax credit on July 1, 2025, and reduce the individual income tax rate from 3% to 2.75%. The bill’s author framed it as a step toward a broader overhaul of Louisiana’s tax structure — one aimed at eventually eliminating the state income tax altogether.

“We have to make hard decisions to fund this vision,” Rep. Danny McCormick, R-Caddo, told the committee. “If we keep paying out $125 million a year to a single industry, we’ll never have the room to give that money back to working families.”

The motion picture production tax credit, in place since 2002, offers up to 40% in rebates for in-state expenditures by film and TV productions, with additional incentives for employing Louisiana residents or investing in rural areas. Louisiana Economic Development has reported that the program issued over $500 million in credits since 2018.

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“This is a bill that puts money into the pockets of my constituents,” said Rep. Roger Wilder, R-Denham Springs, who motioned to report the bill favorably.

Rep. Matthew Willard, D-New Orleans, challenged McCormick on the recent work to revise the incentive. Willard pointed to the effort’s broad consensus, which "involved stakeholders across the board."

Monday’s vote marks at least the second time in less than a year that lawmakers have rejected a proposal to roll back the film credit. A broader tax reform bill passed in November eliminated dozens of incentives deemed ineffective or low-return — including credits for solar energy, university research parks, and job creation — but left the film credit largely intact.

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