Louisiana Film Tax Credit Guide: What Producers Need to Know

Louisiana’s film tax credit gives filmmakers up to 40% back in tax credits when they spend money on qualified production in the state. This makes Louisiana one of the most attractive places to film in the United States.

The program will see big changes in 2025 through Act 44. The new rules remove caps on project and individual credits, but the state can still issue up to $125 million in credits each fiscal year. The program also sets aside money from its yearly funding cap. It reserves $7.5 million for Qualified Entertainment Companies and another $7.5 million for Louisiana screenplay productions. Independent film productions get $15 million, while $95 million remains open for any size production.

This detailed guide gets into everything producers should know about these benefits. You’ll learn about qualifying expenditures, how to apply, and ways to get the most from Louisiana’s film tax credit program in 2025. These incentives can make a huge difference to your project’s bottom line, whether you’re planning a major studio production or an independent film.

Overview of the Louisiana Film Tax Credit Program

Louisiana’s Motion Picture Production Program ranks among the most generous film incentives in the United States. The program underwent changes through Act 44, which Governor Jeff Landry signed in June 2025. These changes will make Louisiana an even more attractive filming destination outside of Hollywood.

What the program offers in 2025

The Louisiana film tax credit program will bring substantial financial benefits to productions starting July 1, 2025. The office of economic development (LED) ^[1] now manages the program and offers up to a 40% tax credit on qualified in-state production expenditures ^[1].

A major change removes spending caps on projects, companies, and individuals ^[1]. The program keeps its annual funding cap at $125 million ^[2]. Here’s how the funding breaks down:

• $7.5 million reserved for Qualified Entertainment Companies ^[1]

• $7.5 million reserved for Louisiana screenplay productions ^[1]

• $15 million reserved for independent film productions ^[1]

• $95 million unreserved for any size production ^[1]

Productions have several ways to use these credits. They can reduce their personal or corporate income tax in Louisiana or sell credits back to the state for 90% of face value. A 2% transfer fee applies, which leads to an 88% net return ^[3].

Who can apply and what qualifies

Motion picture production companies based in Louisiana that create nationally or internationally distributed content can apply for the program ^[3]. Productions need to meet these minimum spending requirements:

• $300,000 minimum in-state expenditure for standard productions ^[3]

• $50,000 minimum for Louisiana screenplay productions ^[3]

The program supports many types of productions. These include feature films, television pilots, series, movies of the week, animated features, animated shorts, webisodes, documentaries, and commercials ^[4]. The state also requires participation in LED-approved career-based learning and training programs ^[1].

Understanding the 40% maximum credit

Productions can reach the maximum 40% benefit through different combinations in Louisiana’s film tax credit structure:

The program starts with a 25% base credit on qualified in-state production expenditures ^[3]. Productions can get additional credits through:

• 10% increase for Louisiana screenplay productions (created by Louisiana residents) ^[3]

• 5% increase for out-of-zone filming (if production office and at least 60% of principal photography happens outside the New Orleans Metropolitan Statistical Area) ^[3]

Some specific expenditures qualify for extra credits:

• 15% Louisiana resident payroll credit (for compensation paid directly to Louisiana residents, excluding payments to loan-out companies) ^[4]

• 5% visual effects credit (if at least 50% of the VFX budget goes to services performed in Louisiana by an approved Qualified Entertainment Company, or if at least $1 million in qualified VFX expenditures are made in Louisiana) ^[4]

The total credits cannot exceed 40% of the base investment ^[3]. This program shows Louisiana’s steadfast dedication to growing its film industry through 2031 and creating economic opportunities statewide.

Breakdown of Major Tax Credit Categories

Louisiana’s entertainment industry thrives on more than just its flagship Motion Picture Production incentive. The state provides tax credits across entertainment sectors of all types. Each program comes with its own structure and benefits to encourage creative industries statewide.

Motion Picture Production

The Motion Picture Production program is the life-blood of Louisiana’s entertainment incentives. Productions can receive up to 40% in tax credits on qualified in-state expenses ^[2]. The credit structure starts with a 25% base credit on qualified expenditures. Productions can get an extra 10% for Louisiana screenplays and 5% for filming outside New Orleans Metropolitan Statistical Area ^[2].

Standard productions need $300,000 in minimum in-state spending to qualify. Louisiana screenplay productions need only $50,000 ^[2]. Feature films, television series, animated productions, documentaries, and commercials can all qualify ^[2].

Qualified expenses cover many production costs: soundstage rentals, camera equipment, props, wardrobe, lighting, and post-production services done in Louisiana ^[2]. Each person’s qualifying payroll tops out at $3 million ^[2]. The state limits credit issuance to $150 million per fiscal year ^[2].

Sound Recording Projects

Sound Recording Incentive Program gives an 18% tax credit for eligible production costs ^[5]. These credits work differently – they come as direct rebates instead of transferable credits ^[5]. So recipients can benefit even without Louisiana tax liability.

The program caps at $2.16 million yearly, allowing up to $100,000 per project each year ^[5]. Music, poetry, and spoken-word performances recorded in Louisiana can qualify ^[5]. Projects must spend $25,000 total, with at least $10,000 going to Louisiana residents ^[5].

New applicants should note that the program ends June 30, 2025. The state won’t accept applications after this date ^[5].

Digital Interactive Media & Software

This program stands out as Louisiana’s most generous incentive. Companies get a 25% tax credit on qualified in-state labor costs plus 18% on qualified production expenses ^[6]. This incentive has no caps or minimums ^[6].

Companies creating digital media products, games, business software, and interactive platforms can apply ^[6]. Static websites and internal-use software don’t make the cut ^[6].

Project managers, engineers, programmers, designers, and artists working in Louisiana count as eligible labor expenses ^[6]. Companies can use credits for state income tax or get an 85% rebate check anytime during the year ^[6].

Live Performance Productions

The Live Performance Production Incentive Program uses a tiered credit system. Projects get 7% for certified Louisiana spending between $100,000 and $300,000, 14% for $300,000 to $1 million, and 18% when exceeding $1 million ^[7].

Productions can earn another 7% credit on Louisiana resident payroll costs ^[7]. The yearly program cap sits at $10 million, with half reserved for non-profits ^[7]. Projects can claim up to $1 million per year ^[7].

Pre-Broadway shows, tour remounts, and concert tours premiering in Louisiana can qualify ^[7]. Like the Sound Recording program, this incentive ends June 30, 2025 ^[7].

Bonus Incentives and How to Qualify

Smart producers can boost their Louisiana film tax credit returns by a lot over the base 25% rate with several targeted bonus incentives. These additional credits can make the difference between a good financial return and an exceptional one.

Louisiana Screenplay Bonus (10%)

Productions based on screenplays created by Louisiana residents can get an extra 10% credit on all qualified expenditures ^[3]. The requirements to get this bonus include:

• Qualifying Louisiana expenditures between $50,000 and $5 million ^[8]

• Proof of Louisiana residency for the screenplay’s author

• Supporting documents like certificate of authorship, Writers Guild of America registration, U.S. Copyright Office records, or a legal opinion ^[9]

This bonus wants to promote local talent development and propel development within Louisiana’s creative community. Louisiana has set aside $7.5 million of its annual funding cap just for Louisiana screenplay productions ^[4].

Out-of-Zone Filming Bonus (5%)

Productions can earn an extra 5% credit by filming outside the New Orleans Metropolitan Statistical Area ^[2]. The requirements include:

• Principal production office must be outside the New Orleans Metro Area

• At least 60% of principal photography must happen in these qualifying regions ^[9]

The New Orleans Metro Area covers Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. James, and St. Tammany parishes ^[3]. All other parishes, including St. John the Baptist Parish, count as “out-of-zone” locations for this bonus ^[4].

Resident Payroll Bonus (up to 15%)

Louisiana gives an extra 15% tax credit on compensation paid directly to Louisiana residents ^[2][9]. This creates a possible combined rate of 40-45% on resident labor costs ^[4].

Payments to artists’ loan-out companies don’t qualify for this resident bonus ^[4]. Producers must get completed residency forms for each Louisiana employee to qualify for the full 15% on Louisiana resident payroll ^[4].

Jefferson Parish Local Rebate (3%)

Jefferson Parish offers its own local 3% cash rebate on qualified spending, on top of state incentives ^[10][11]. The rebate applies to:

• Payroll for Jefferson Parish residents

• Local lodging expenses

• Lease or rental expenses within the parish

• Post-production costs incurred in Jefferson Parish ^[8]

Productions need to spend at least $150,000 locally, with rebates capped at $100,000 per production ^[11]. Productions can get a $10,000 cap increase if they locate both their production office and soundstage in Jefferson Parish ^[11]. Recurring productions see their cap rise to $115,000 when they bring another project to Jefferson Parish within 12 months of finishing a prior production ^[12].

Productions must submit Jefferson Parish Declaration of Residency forms and have a Louisiana certified public accountant audit to claim this rebate ^[12].

These bonuses work together to help producers tap into the full potential of the Louisiana film tax credit program. Smart planning can help reach the 40% statutory maximum while getting additional local rebates too.

Application Process and Required Documents

The Louisiana film tax credit application follows a well-laid-out two-phase process that needs proper documentation. A correct approach will give a production its full eligible incentives without delays.

Step-by-step application guide

Productions need to apply online through Louisiana Economic Development’s FastLane system ^[2]. The application happens in two distinct phases:

1. Original Certification: The online application needs all supporting documents including a detailed preliminary budget, Louisiana-specific budget, distribution plan, script/synopsis, and a notarized statement agreeing to pay all vendors ^[1].

2. Final Certification: The office needs a cost report after project completion. An independent CPA performs an expenditure verification report. LED then issues final certification for the approved tax credit amount ^[1].

Productions must take part in a career-based learning program before submission. This requirement can be met through internships, workshops, studio tours, or financial contributions ^[13].

Louisiana film tax credit application fees

Two separate fee payments are needed:

• Application fee: 0.5% of estimated tax credits with a $500 minimum and $15,000 maximum ^[13]

• Expenditure verification (audit) deposit: The amount depends on production size ^[1]

  • $5,000 for productions with expenditures between $50,000-$300,000

  • $7,500 for productions with expenditures between $300,000-$25 million

  • $15,000 for productions exceeding $25 million

CPA audit and residency forms

Final certification requires detailed financial documentation:

• Complete bible runs showing all expenditures

• Full payroll data with Louisiana resident verification ^[1]

Productions seeking the additional 15% resident payroll credit must collect signed Declaration of Residency forms from each Louisiana employee ^[14]. These forms need proof of residency through a valid Louisiana driver’s license, voter registration, or previous year’s state tax return ^[15].

Common mistakes to avoid

These issues can delay or reduce tax credit benefits:

• Missing proper residency documentation

• Mixing Louisiana and out-of-state expenditures

• Not knowing that loan-out companies must withhold 3% income tax ^[16]

• Overlooking that tax credits can offset Louisiana income taxes or be transferred to the state for 88% net value (after 2% transfer fee) ^[1]

A systematic approach helps you get maximum benefits from Louisiana’s film tax credit program.

Caps, Refunds, and Transfer Options

Louisiana’s film tax credit program has undergone significant changes that set new financial guidelines. Producers need to understand these changes to get the most from their benefits.

Annual state cap: $125 million

Louisiana’s legislature has lowered the annual funding cap to $125 million from $150 million for applications submitted after July 1, 2025 ^[17]. This amount represents the maximum credits Louisiana can issue each fiscal year ^[18]. The money breaks down into specific allocations: $7.5 million goes to Qualified Entertainment Companies, another $7.5 million to Louisiana screenplay productions, $15 million to independent films, and $95 million remains available for any size production ^[4].

Project cap and payroll cap updates

The state used to limit productions to $20 million per project, with scripted series getting up to $25 million per season, plus a $3 million cap on qualifying payroll per person ^[19]. These restrictions no longer exist as of 2025 ^[18]. This change should bring back larger productions that once thrived in Louisiana ^[18].

Refund vs transfer: what’s better?

Production companies can use their tax credits in two main ways:

1. Apply credits directly against Louisiana income tax liability

2. Transfer credits back to the state for 90% of face value ^[18][2]

Productions with little Louisiana tax liability might prefer the transfer option. This provides quick cash flow without searching for third-party buyers.

Understanding the 2% transfer fee

The Department of Revenue takes a 2% transfer fee when productions transfer credits to Louisiana ^[2]. This brings the actual return down to 88% of the credit’s face value ^[5]. These collected fees help support education and workforce development programs across the state ^[5], which creates a lasting foundation for the film industry’s growth.

Conclusion

Louisiana keeps getting better as a top filming spot thanks to its updated film tax credit program. The 2025 changes will make the state more competitive without doubt. The program removes project caps but keeps the annual $125 million funding allocation. Producers can get returns up to 40% on qualified expenditures when they use the tiered credit structure fully. This boost to production budgets makes a real difference.

Smart planning helps you get the most from these benefits. Filming outside New Orleans gives you a 5% out-of-zone bonus. You can also get a 15% resident payroll bonus by hiring Louisiana locals for your cast and crew. Projects using Louisiana-created screenplays can earn another 10% screenplay bonus.

The application process uses a simple two-phase structure, even though it needs detailed information. Productions must keep careful records during filming. This includes proof of residency and tracking expenses. Good record-keeping helps avoid mistakes that could hold up your credit benefits.

Smart producers look beyond the state program. Jefferson Parish offers a 3% rebate that works with state credits to improve returns. You retain control over how to use these credits. Apply them to Louisiana tax liability or sell them back to the state for 88% cash value. This works well whatever your company’s tax situation.

Louisiana’s film tax credit program gives filmmakers a great chance to save money. The state wants to rebuild its production industry through 2031 with these generous incentives. Productions that learn about these programs and plan well will find Louisiana more than just a beautiful place to film – it’s a smart financial choice too.

Key Takeaways

Louisiana’s revamped film tax credit program offers substantial financial benefits for producers, with strategic planning being key to maximizing returns up to 40% on qualified expenditures.

• Generous base incentive: Louisiana offers up to 40% tax credits on qualified in-state production expenditures with no project caps as of 2025.

• Stack multiple bonuses: Combine 10% Louisiana screenplay bonus, 5% out-of-zone filming bonus, and 15% resident payroll bonus to reach maximum returns.

• Flexible credit options: Transfer credits to the state for 88% cash value or apply against Louisiana tax liability, providing immediate cash flow solutions.

• Strategic location planning: Film outside New Orleans Metro Area and hire Louisiana residents to unlock additional bonus credits worth up to 20% extra.

• Streamlined application process: Follow the two-phase certification process with proper documentation, including CPA audits and residency forms, to avoid delays.

The program’s $125 million annual cap is strategically allocated across different production types, making Louisiana one of the most financially attractive filming destinations in the United States through 2031.

FAQs

Q1. What is the maximum tax credit percentage available under Louisiana’s film incentive program in 2025? Productions can receive up to 40% in tax credits on qualified in-state expenditures. This includes a 25% base credit with additional bonuses for Louisiana screenplays, out-of-zone filming, and resident payroll.

Q2. Are there any caps on individual project credits in Louisiana’s 2025 film incentive program? As of 2025, Louisiana has eliminated both the per-project cap and the individual payroll cap. However, the state maintains an annual funding cap of $125 million for all projects combined.

Q3. How can producers qualify for bonus incentives in Louisiana’s film tax credit program? Producers can earn additional credits by using Louisiana-created screenplays (10% bonus), filming outside the New Orleans Metro Area (5% bonus), and hiring Louisiana residents (up to 15% bonus on resident payroll).

Q4. What are the minimum spending requirements to qualify for Louisiana’s film tax credits? Standard productions must spend at least $300,000 in-state to qualify. However, Louisiana screenplay productions can qualify with a lower threshold of $50,000 in-state expenditures.

Q5. How can production companies utilize their Louisiana film tax credits? Companies have two main options: they can apply the credits directly against their Louisiana income tax liability, or they can transfer the credits back to the state for 90% of face value (effectively 88% after a 2% transfer fee).