Louisiana has housed and produced films since the early 1900s. Since then, it’s become the 3rd most popular production state (behind California and New York).
Tax Incentives Programs
In fact, the tax incentives allowed New Orleans Video Access Center (NOVAC) to provide job training seminars and workshops to locals. Last October, they held a FREE two-day workshop. Attendees learned the basic knowledge and skills for entry-level production work. That workshop, without city aid, normally costs $200+ out-of-pocket.
Governor Bobby Jindal unveiled a new tax plan last week that stirred an epic uproar among filmmakers and local crew. Additionally, it sparked debates from non-film locals who remain hesitant about bringing Hollywood to New Orleans. Debates focus on whether or not the new tax plan is viable for Louisiana’s economic revenue.
Like many of my peers, I moved here because of the industry and the lower cost of living.
The tax plan is an effort to keep revenue for the state of Louisiana. It works by capping the amount of money paid to above-the-line professionals.
Understandably, the governor wants to ensure that money generated by Louisiana remains here. The incentives are meant to boost the economy and provide jobs for residents. In order to qualify, productions in Louisiana must hire a certain amount of local crew. And they must spend their budgets on local resources. That’s why the city built a number of studios here.
Success For Hollywood South
In a news article published by NBC’s local network back in January, the industry was cited as having a record-breaking year for 2012. Mayor Landrieu was quoted:
“The film industry in New Orleans has become a major economic engine that puts hundreds of millions of dollars into the local economy, creating jobs and supporting local businesses.”
How did an article with that kind of sentiment precede a massive tax debate two months later?
Yes, those above-the-line filmmakers may take their paychecks elsewhere at the end of a production. However, for the duration of filming, every member of the cast and crew (resident or not) adds to local revenue. Out-of-towners must stay at local hotels. They must purchase food from local venues or caterers. Rent cars. Buy fuel. Go out drinking to celebrate the end of a long day.
Why Local Filmmakers Should Care
The point of filmmaker outrage is that this proposal affects more than above-the-liners. It trickles down the production tree, ending with the locals. The same locals who earned our spots in the industry because of the creation of the tax incentives.
One major issue I have with the proposal (besides the obvious), is that the Lousiana Film and Entertainment Association (LFEA) offered up a compromise that would allow more control over saving Louisiana money without causing such a profound negative effect on the industry. Nothing from the compromise has been illustrated in the tax plan.
As of yet.
Jindal says he expects changes to be made to the proposal before it goes into effect. That hasn’t stopped protesters from voicing their concerns.