Committee backs moving motion picture production tax credit from statute to LED rulemaking

Senate Bill 232, carried in committee by Senator Bass, was reported favorably by the House Committee on Ways and Means on May 19. The bill would move the Motion Picture Production Tax Credit out of statute and into the rulemaking authority of Louisiana Economic Development (LED), allowing the agency to adjust program details by rule.

Senator Bass said the change is intended to make the incentive more agile and competitive. “This will align the program with the LED strategic plan by creating a modernized incentive that is more responsive and competitive in the industry,” she told the committee and said the bill “does not change the cap, and it does not change the sunset.”

Susan Bourgeois, Secretary of Louisiana Economic Development, told the committee the department’s strategic plan calls for a flexible toolkit and said moving the program into rules would allow quicker changes when industry conditions shift. “The intention of this is twofold… our ability to change rules, our ability to pivot and to maximize the program based on how the economy, the industry and the program changes just helps us inside the department and it helps us make Louisiana more competitive,” Bourgeois said.

Committee members asked about oversight and geographic distribution of benefits. Senator Bass said an amendment on the Senate floor requires LED to bring promulgated rules back to the Legislature for approval, and she committed to securing a commitment from LED leadership to provide reports on projects and return on investment. Representative Echols asked about examples of how LED would use flexibility; Senator Bass cited an ongoing project in northwest Louisiana and said rulemaking would allow faster, targeted changes when an individual production or investor seeks adjustments.

The committee reported the bill favorably by voice motion. Several city and industry representatives filed cards in support.