Taxpayers in one state that has implemented a tax credit program to bring filming to the state are losing most of that money, according to a new study. The Advocate cites a study conducted for Louisiana Economic Development by New York-based Camoin Associates that suggests about two-thirds of the money put into the program is lost.
According to the report, preliminary figures released Thursday show that for every dollar spent on Louisiana’s tax credit programs for the entertainment industry, which mainly goes to the film tax credit, state and local governments get back about 36 cents in tax revenue.
The report cites Michael N’dolo, vice president of Camoin Associates, saying that’s in the “same ballpark” as previous studies of the tax program. N’dolo spoke about it at the Louisiana Entertainment Summit.
“The tax break for the film industry has drawn controversy in recent years for its cost to a state that has dealt with repeated budget shortfalls and cut spending for things like health care and education,” the Advocate reports. “The state’s motion picture production tax credit reimburses film and TV producers up to 40 percent of the cost of their in-state productions.”
The report adds: “Lawmakers in 2015 capped the amount of credits that could be claimed at $180 million, then revised it again in 2017 to cap the amount of credits that could be issued at $150 million.”
Louisiana has reportedly issued $1.5 billion in tax credits through the program since 2012, including about $150 million last year.