Dear LFEA Members,
Yesterday, Gov. Jindal announced a plan to scale back the motion picture tax credit program by, among other things, imposing a salary cap of $1 million for above-the-line individuals (i.e., cast members). While we recognize that some efficiencies can be obtained through structuring intelligent limitations on cast salaries, a $1 million cap will be extremely detrimental to our industry. To be precise, North Carolina has a $1 million salary cap and last year they had less than one-tenth the amount of film activity as Louisiana. If such a cap is instituted in Louisiana, it will likely result in the bankruptcy of all the major studio facilities in the state and the loss of more than 10,000 jobs.
LFEA suggested a reasonable alternative approach to state officials, an approach that could be structured to deliver immediate savings while at the same time preserving Louisiana’s competitiveness within the industry and the thousands of jobs and businesses that have flocked to Louisiana in recent years to build Hollywood South. Unfortunately, our suggested approach was not incorporated into the Governor's package as outlined.
Now is the time to speak out to your legislators and explain to them the impact that these changes will have on our industry. We must fight to maintain a strong and competitive entertainment industry in Louisiana. In the coming weeks, we will ask you to rally; we will ask you to attend legislative committee hearings; and we will ask you to call your Senators and Representatives. Our film industry is strong. LFEA will lead the fight to ensure that it continues to grow! More details to come...
Louisiana Film & Entertainment Association (LFEA)