Film Tax Credit Makes Tax Cuts for Filmmakers

By: D. D. Reese

Louisiana has enacted Act 44, a significant reform to its film tax credit program, aiming to revitalize the state's film industry and attract large-scale productions. Signed into law by Governor Jeff Landry on June 4, 2025, the legislation introduces several key changes to enhance the state's competitiveness in the film sector.

Under the new law, qualified productions can receive a tax credit of up to 40% of total production expenditures. This includes a base credit, previously capped at 25%, with additional incentives for filming outside of New Orleans, employing Louisiana residents, performing visual effects services in-state, and creating screenplays by Louisiana residents. The program also offers tax credits for employees on payroll. Companies can utilize the credit to offset income tax liability or transfer it back to the state for a refund check. While the total annual credit cap remains at $125 million, the removal of per-project and per-person caps is expected to attract larger productions.

A notable aspect of Act 44 is the increased authority granted to the Louisiana Economic Development (LED) agency. Previously, changes to the incentive program required legislative action. Now, LED has the flexibility to adjust incentive rules through administrative processes, allowing for more responsive and timely modifications to the program.

The reform comes at a time when Louisiana's film industry has experienced a decline in activity. According to Louisiana Entertainment, only one production was active in the state as of May 20, 2025. Industry leaders hope that the new law will provide the necessary incentives to attract more film and television projects, thereby boosting local employment and related sectors like tourism.

While the changes are seen as a positive step for the industry, some critics express concerns about the discretionary power granted to LED. They worry that this could lead to inconsistent or politically influenced decisions. Proponents argue that the increased flexibility is essential for making Louisiana more competitive amid rising production costs and declining traditional revenue streams.

Overall, Act 44 represents a strategic effort by Louisiana to reclaim its status as a premier destination for film and television production, aiming to stimulate economic growth and job creation in the state.