SHREVEPORT, La. - Louisiana is a prime location for film and TV production in the country. Production studios are drawn in by the state's Motion Picture Production Program (MPPP) which offers up to $180 million a year in tax credits.
Gov. Jeff Landry is calling for a third legislative special session in November to overhaul Louisiana's tax system. The plan calls for restructuring and cuts to the MPPP and multiple other programs, which would ultimately end in June.
The Louisiana Department of Revenue found the economic return on investment for the film industry was a $1.60 per dollar spent in 2023. A study from the Louisiana Economic Development says the state's additional tax revenue was only 39 cents per dollar spent in the same year.
Lawmakers say the high cost of the subsidy may not justify the low return of additional tax revenue. "These incentives are one of the first things that gets production companies here in the first place. Having these incentives and tax credits established lets them know what they're getting," said Shreveport-Bossier Film Commissioner Wade Marshall.
Workers earned $2.60 for ever dollar spent on the MPPP in 2022, but the state only received 7 cents per dollar spent. The program has a positive impact on the state's economy since it generates more household income than it costs the state; however, the credit does not generate enough state tax revenue to make up for the revenue the state loses each year.
"Louisiana Economic Development is in the midd.