Sponsor seeks repeal of motion picture tax credit; film industry warns of economic loss

House Bill 341, introduced by Representative McCormick, would repeal the state motion picture production tax credit and reduce the individual income tax rate (the sponsor later amended the rate reduction to a smaller, revenue‑neutral amount in committee). The sponsor said his goal is to reduce the income tax burden on residents and cited potential long‑term wealth creation from returning credit amounts to taxpayers.

Film‑industry witnesses urged opposition. Jason Wagenspach, president of Film Louisiana and CEO of a local studio, described the industry as a job creator and cited economic impact studies showing that each dollar in credits generates multiple dollars in local economic activity (he referenced a commonly cited benefit ratio). Industry representatives also raised tourism benefits and urged the committee not to eliminate a program they said supports thousands of jobs and substantial payrolls.

Representative McCormick and industry representatives discussed prior legislative work to restructure film incentives and the trade‑offs between incentives and state revenue. After debate the committee moved on a motion to report the bill with amendments; a recorded roll call failed (2 yeas, 10 nays) and the motion did not pass.

Why it matters: Louisiana’s film tax credits are a major economic development tool that supporters say magnetize production activity, local payroll and tourism; sponsors seeking repeal argued credits are costly and the money could instead be used to lower income tax rates.

Outcome: the committee did not advance the bill.