The Louisiana Motion Picture Investor Tax Credit (MPITC) impacted the state’s economy in a positive way…except for the times that it didn’t.

This is according to an audit that Legislative Auditor Mike Waguespack published this week.

“Economic impact studies commissioned by the Louisiana Department of Economic Development [LED] or performed by the Louisiana Department of Revenue [LDR] have consistently found that the motion picture projects that receive MPITC do not generate enough state tax revenue to make up the cost of the credits, but they do generate more income for Louisiana households than the credit costs the state,” the audit said.

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Since 2009, LED has contracted for at least eight economic impact studies on the MPITC.

The most recent, which the New York state-based Camoin Associates released last fall, said incentivized projects generated $2.59 in household income and 23 cents in state taxes for every dollar of credits they received.

LDR has included the MPITC in its annual Return on Investment reports for 2022 and 2023. Department leaders said the program generated $1.11 in household income and 7 cents in state tax revenue for every dollar the state spent on the program in Fiscal Year (FY) 2022.

“All of the studies account for not only the direct effects on household income as the productions directly hire Louisiana residents, but also the indirect effects of subsequent rounds of spending that go to vendors and contractors who also hire Louisiana residents,” according to Waguespack’s audit.

The MPITC offers credits of 25% to 40% on production expenditures incurred in the making of motion pictures
in Louisiana. Companies that produce movies, television shows, videos, commercials, or other motion picture
productions — excluding sports and news television coverage, as well as adult films — can receive that credit for their production spending in Louisiana. The company also has the option to sell the credits back to the state for 88% of their face value.

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Louisiana adopted its motion picture incentive program in 1992 and significantly enhanced it in 2002. Last year, the National Conference of State Legislatures said 36 states, including the District of Columbia, offer incentive programs for the motion picture industry.

Auditors said 72% of the jobs and 78% of the productions in Louisiana’s motion picture industry are in the New Orleans area.