Louisiana Film Tax Credit

Louisiana Film Tax Credit: The Complete Producer's Guide (2025)

Louisiana's film tax credit program went through a major structural redesign in June 2025. Governor Jeff Landry signed Act 44, which replaced the prior 30% flat rate with a tiered bonus system capable of reaching 40%, eliminated per-project and per-person caps, shifted program administration from the Governor's Office of Film and Television Development to Louisiana Economic Development, and reduced the annual funding cap from $150 million to $125 million. The result is a program that rewards productions that invest in Louisiana's local economy, particularly those using Louisiana-based screenplays, Louisiana resident crews, and in-state VFX facilities.

Louisiana was one of the earliest states to adopt a major film incentive (2002) and has attracted an extraordinary volume of production over two decades, from major studio tentpoles to independent features to television. The crew base has grown more than fourfold since the program launched. The studio infrastructure in New Orleans and Baton Rouge is purpose-built for large productions. This guide covers exactly how the credit works under Act 44, how to calculate your credit on a real budget, what facilities and crew you'll find, and how Louisiana compares to the states most likely to compete for the same production.

Louisiana Film Tax Credit at a Glance (Post-Act 44)

• Base credit rate: 25% on qualified in-state expenditures

• Maximum credit rate: 40% (with all applicable bonuses)

• Annual funding cap: $125 million (for applications received on or after July 1, 2025)

• Per-project cap: None (eliminated under Act 44)

• Per-person wage cap: None (eliminated under Act 44)

• Minimum qualified spend: $300,000 in Louisiana ($50,000 for Louisiana screenplay productions)

• Credit type: Transferable; state buyback available at 90% face value (88% net after 2% fee)

• Program expiration: 2031 (extended under Act 44)

The Bonus Credit Structure Under Act 44

The prior program's 30% flat rate plus 10% on resident wages has been replaced by a modular system where you build toward 40% by qualifying for specific bonus categories. Here is how the credits stack:

Base Credit: 25%

Every certified production receives a 25% credit on all qualified Louisiana expenditures, including non-resident labor, equipment rentals, set construction, location fees, and all in-state vendor spend.

Louisiana Resident Payroll Bonus: Up to 15% Additional

Productions earn an additional 15% credit specifically on wages paid to Louisiana residents employed on the production. This bonus applies only to the first $3 million of each resident's payroll. For a production with a large Louisiana-based crew, this can be the single most significant bonus in the stack. A production with $4 million in Louisiana resident wages qualifies for the 15% bonus on $3 million of that, adding $450,000 to the credit.

Louisiana Screenplay Bonus: 10% Additional

Productions using a screenplay written by a Louisiana-based writer qualify for an additional 10% credit on all qualified expenditures. This bonus has a dedicated $7.5 million annual set-aside within the $125 million cap, so Louisiana screenplay productions are not competing against the general pool for this portion of their credit. The screenplay must be certified as qualifying before production begins.

Out-of-Zone Filming Bonus: 5% Additional

Productions filming outside the New Orleans Metro Area earn an additional 5% on expenditures incurred in those non-metro regions. This incentive is designed to distribute production spending more broadly across the state, including Baton Rouge (Celtic Studios' home region), Shreveport, and rural Louisiana parishes. Productions using Celtic Studios in Baton Rouge automatically qualify for this bonus on Baton Rouge-incurred expenditures.

Visual Effects Bonus: 5% Additional

Productions that perform VFX work in Louisiana through a certified Qualified Entertainment Company can earn an additional 5% on that VFX spend. To qualify, the production must either incur at least 50% of its total VFX budget in Louisiana through an approved company, or spend a minimum of $1 million on Louisiana-based VFX. The Louisiana Entertainment Development office maintains a list of certified Qualified Entertainment Companies for VFX.

How the Bonuses Stack: Reaching 40%

A production can reach 40% total credit with the following combination:

• 25% base

• +15% resident payroll bonus (on first $3M per resident)

• = 40% on qualifying resident wages

Or alternatively:

• 25% base

• +10% Louisiana screenplay

• +5% out-of-zone

• = 40% on all qualified expenditures (not limited to resident wages)

The two paths to 40% produce meaningfully different total credit amounts depending on the size of the resident crew and the total budget. A production with heavy resident labor benefits more from the payroll-focused path; a production with a mixed crew benefits more from the screenplay plus out-of-zone combination if it qualifies.

Annual Cap Allocation: How $125 Million is Distributed

The $125 million annual cap is structured with set-asides to protect smaller production categories:

• $95 million: Open pool, available to any qualifying production

• $15 million: Reserved for independent film productions

• $7.5 million: Reserved for Louisiana screenplay productions

• $7.5 million: Reserved for Qualified Entertainment Companies (VFX and post-production)

Productions apply to Louisiana Economic Development for certification. The LED office processes applications and allocates credits against the available cap. Unlike prior years, the rollover provision allowing unclaimed credits from one year to carry into the next has been eliminated. Credits not claimed in a fiscal year do not roll over.

Monetizing the Credit: Transferability and State Buyback

Louisiana's credit is transferable. Productions that do not have Louisiana tax liability (which includes most single-purpose production LLCs) have two primary options:

State Buyback

Louisiana Department of Revenue will purchase credits directly from the production at 90% of face value. A 2% transfer fee is deducted, resulting in an 88% net return. For a $2 million credit, the state buyback yields $1,760,000. This is the guaranteed floor for credit monetization. The process requires filing an application with the Department of Revenue after receiving the credit certificate.

Third-Party Transfer

Productions can also sell credits to Louisiana taxpayers who can use them to offset their Louisiana tax liability. The secondary market for Louisiana film tax credits typically trades at 85-93 cents on the dollar, depending on the size of the credit, the buyer's timeline, and current market conditions. Larger credits may require selling to multiple buyers or through a broker. Third-party sales can yield more than the state buyback when market conditions favor it, but take longer and involve broker fees.

Budget Scenario: A $5 Million Independent Feature

Consider a $5 million independent feature filming entirely in Baton Rouge at Celtic Studios and on practical locations in the surrounding parishes. The production uses a Louisiana-based screenplay and employs a substantial Louisiana resident crew.

• Total budget: $5 million

• Above-the-line (non-resident writer, director, leads): $900,000

• Total qualified Louisiana expenditures: $3.8 million

• Of that, Louisiana resident wages: $1.5 million (all under the $3M per-person cap)

• Location: Baton Rouge (qualifies as out-of-zone from New Orleans Metro)

• Screenplay: Louisiana-based writer (qualifies for screenplay bonus)

Credit calculation:

• 25% base on $3.8 million: $950,000

• 10% Louisiana screenplay on $3.8 million: $380,000

• 5% out-of-zone on $3.8 million: $190,000

• 15% resident payroll bonus on $1.5 million resident wages: $225,000

• Total credit: $1,745,000

At state buyback (88% net): $1,535,600 in cash returned to the production. That represents 30.7% of the total $5 million budget, or 45.9% of the qualified Louisiana spend. For an independent film, the Louisiana credit can dramatically change the financial architecture of the project.

Productions tracking their Louisiana expenditures use Saturation to categorize resident versus non-resident wages, out-of-zone versus New Orleans Metro spend, and VFX versus other qualified costs. When the LED audit requires documentation mapping expenditures to specific bonus categories, those tags are already in the system from production day one.

Notable Productions in Louisiana

Sinners (2025, Warner Bros.), directed by Ryan Coogler and starring Michael B. Jordan, filmed extensively in and around New Orleans through mid-2024. A supernatural thriller set in the Jim Crow-era South, taking advantage of Louisiana's authentic Southern architecture and landscape. A flagship example of how Louisiana's historical environment attracts period-specific productions that other states cannot replicate.

Five Nights at Freddy's (2023, Blumhouse/Universal) filmed in New Orleans, building its primary set in an abandoned parking structure in the city. Starring Josh Hutcherson, the production used Louisiana's studio infrastructure and practical locations to deliver a mid-budget horror film that grossed $137 million domestically against a $20 million production budget.

The Iron Claw (2023, A24), starring Zac Efron as Kevin Von Erich, filmed in Baton Rouge. The production used Celtic Studios and surrounding Baton Rouge locations. A period sports drama that demonstrates the range of production types Louisiana attracts.

The Killer (2023, Netflix), directed by David Fincher and starring Michael Fassbender, included production in New Orleans. Fincher's choice to use Louisiana locations alongside Paris and other international settings reflects Louisiana's competitive economics at the studio feature level.

Bottoms (2023), directed by Emma Seligman and starring Rachel Sennott and Ayo Edebiri, filmed throughout New Orleans locations. The production received an SXSW audience award nomination. A smaller independent feature using Louisiana for a contemporary high school comedy, demonstrating the breadth of genres the state attracts beyond action and horror.

Is God Is (2025, Amazon MGM/Orion Pictures), starring Sterling K. Brown, Vivica A. Fox, and Janelle Monae, wrapped at Second Line Stages in New Orleans in late 2024. An example of a studio-backed prestige production using Louisiana's purpose-built stage infrastructure for a contemporary drama.

Production Infrastructure: Studios and Facilities

New Orleans

Second Line Stages (New Orleans): Eight purpose-built soundstages totaling 128,500 square feet of production space, with five new stages added in recent years. The first LEED-certified independent studio in the United States. Full production support services including production offices, equipment storage, and mill space. Located in the Elmwood neighborhood, accessible from the major New Orleans highway network. Active home to television production and studio features including the Amazon MGM project noted above.

The Ranch Film Studios (Chalmette, near New Orleans): Converted from a former Ford assembly plant near New Orleans, The Ranch offers large-footprint stage space ideal for films requiring massive practical set construction. The facility was used for the Five Nights at Freddy's sequel ("Music Box") with a $51 million budget shooting through early 2025. The conversion of industrial space to production facility is a model repeated in several other Louisiana locations.

New Orleans' East: Multiple warehouse and industrial conversion spaces in eastern New Orleans and surrounding parishes serve as practical production facilities for productions that need large interior spaces without the stage-rate cost of purpose-built studios.

Baton Rouge

Celtic Studios (Baton Rouge): Located on 30 acres in Baton Rouge, Celtic Studios is the largest design-built studio in the United States by footprint. Seven soundstages totaling nearly 150,000 square feet, full mill and production office infrastructure, and decades of experience servicing major studio productions. Originally opened as Raleigh Studios Baton Rouge before rebranding under Celtic management in 2013. Baton Rouge's location outside the New Orleans Metro Area makes Celtic-based productions eligible for the 5% out-of-zone bonus, a meaningful advantage for productions shooting in the region.

Film Baton Rouge: The Baton Rouge Film Commission provides production support, location scouting, and crew referrals for productions in the capital region. Baton Rouge's built environment includes the Louisiana State Capitol, period architecture, and urban industrial locations distinct from the French Quarter aesthetic of New Orleans.

Statewide Infrastructure

Louisiana's total production space now exceeds 700,000 square feet across the state, the result of two decades of investment driven by the incentive program. The crew base has grown more than fourfold since 2002, from a modest local workforce to a deep roster of experienced IATSE-trained professionals.

Union Ecosystem

IATSE Local 478 is the primary union local for below-the-line crew in Louisiana. Local 478 covers the Southeast United States and has grown substantially alongside Louisiana's production volume. The local represents camera, grip, electric, art department, wardrobe, hair, makeup, and other production departments for union productions in Louisiana.

Louisiana operates as a right-to-work state, which means union membership is not required for employment on productions. This creates genuine flexibility for productions at the lower end of the budget range: independent films can hire non-union crew for many positions without violating state law, which is not the case in California or New York. However, productions working under SAG-AFTRA theatrical contracts (which include most studio and mid-budget features) typically hire under union agreements for behind-the-camera crew as well.

For productions where the resident payroll bonus is important (the 15% additional credit on resident wages), union versus non-union status of the crew member is less relevant than residency. A Louisiana-resident non-union crew member qualifies equally with a Louisiana-resident union member for the resident wage bonus. Productions specifically targeting the residency bonus should prioritize local hiring from the Louisiana crew base rather than bringing in out-of-state crew who happen to hold IATSE cards.

Local Incentives: New Orleans and Parish-Level Programs

On top of the state credit, several Louisiana municipalities and parishes maintain their own production incentive programs:

New Orleans: The New Orleans Mayor's Office of Cultural Economy and the New Orleans Film Office provide free production services, expedited permitting, and location access facilitation for qualifying productions. New Orleans also maintains a dedicated film office with location scouts and production liaisons embedded in city government, unusual for a city of its size.

Jefferson Parish Economic Development Commission (JEDCO): Jefferson Parish, which borders New Orleans and includes several active production facilities, offers complementary incentive programs and direct assistance to productions locating in the parish.

Baton Rouge / East Baton Rouge Parish: The Baton Rouge Film Commission offers location assistance, crew referrals, and coordination support. The parish does not offer a separate tax credit but works actively with LED on state program applications for Baton Rouge-based productions.

Shreveport / Caddo Parish: Northwest Louisiana has historically attracted some production on the strength of lower costs and available locations, with the Caddo-Bossier Film Commission providing coordination support. Shreveport locations qualify for the out-of-zone bonus and the region is meaningfully less expensive than New Orleans or Baton Rouge for below-the-line production costs.

How Louisiana Compares to Georgia and Texas

Louisiana vs. Georgia

Georgia offers a 30% transferable credit with no annual cap and no application queue. In 2024, Georgia attracted 9.8% of US film and television productions. Georgia's credit is simpler than Louisiana's: meet $500,000 minimum spend, qualify, receive 30%. No bonus structure, no residency requirements, no screenplay qualification.

Louisiana's top effective rate under Act 44 (40% when combining bonuses) exceeds Georgia's 30% by 10 percentage points for the right production. A Louisiana-heavy-crew independent feature using a Louisiana screenplay and filming outside New Orleans can generate substantially higher credits per dollar of spend than Georgia. However, Georgia's credit is transferable without the state's 10% haircut at buyback, which means Georgia productions selling credits on the secondary market at 90 cents on the dollar receive effectively 27% net. Louisiana's buyback at 88% net yields slightly less on the base credit but the higher rate on the right production more than compensates.

Georgia's film production volume dropped approximately 33% in 2025 from its 2023 peak, with Marvel moving significant production to the UK. Louisiana's Act 44 restructuring positions it to attract some of the production that previously went to Atlanta.

Louisiana vs. Texas

Texas offers a 5-22.5% film incentive on a very limited annual pool ($45 million), with slow processing times and a history of funding gaps. Texas is not a serious competitor for most productions that are evaluating Louisiana. The comparison matters primarily for productions based in Texas that are considering staying in state versus moving to Louisiana for the economics. Louisiana wins this comparison on credit rate and infrastructure depth for essentially any production above $500,000 in total budget.

Frequently Asked Questions

What changed in the Louisiana program under Act 44 (2025)?

Act 44, signed June 2025, restructured the credit from a 30% flat rate to a 25% base with bonus categories reaching 40%. It eliminated per-project and per-person wage caps, reduced the annual cap from $150 million to $125 million, extended the program through 2031, eliminated the rollover provision for unclaimed credits, shifted administration to Louisiana Economic Development, and created set-asides for independent films, Louisiana screenplay productions, and Qualified Entertainment Companies.

Can a production qualify for both the resident payroll bonus and the screenplay bonus?

Yes. The bonuses are not mutually exclusive. A production using a Louisiana screenplay and employing Louisiana residents qualifies for both the 10% screenplay bonus on all expenditures and the 15% resident payroll bonus on qualifying resident wages (up to the first $3 million per resident). The maximum combined effective rate on resident wages from a qualifying screenplay production is 25% + 10% + 15% = 50% on resident wages, though this is limited to the first $3 million per individual resident.

Is Louisiana a right-to-work state?

Yes. Louisiana is a right-to-work state, which means union membership cannot be required as a condition of employment. Productions can hire non-union crew without violating state law. SAG-AFTRA signatory productions still work under their respective contracts for cast, but below-the-line crew decisions have more flexibility than in California or New York.

How long does it take to receive credit certificates?

Louisiana's LED audits typically complete 6 to 18 months after the production submits final expenditure documentation following wrap. State buyback processing adds additional time after certificate issuance. Productions planning their cash flow around the credit should budget for a 12 to 24-month timeline from wrap to cash receipt, depending on the complexity of the audit.

Does the $3 million per-person cap on the resident wage bonus apply per year or per production?

The $3 million cap on the 15% resident payroll bonus applies per resident per certified production, not per year. A Louisiana resident earning more than $3 million on a single production qualifies for the bonus on the first $3 million of their wages; amounts above that threshold earn the base 25% credit rather than the 40% combined rate.

What constitutes a "Louisiana screenplay" for the bonus?

The screenplay must be written by a Louisiana-based writer and certified as qualifying by Louisiana Economic Development before production begins. The specific certification criteria are administered by LED. Productions planning to use a Louisiana screenplay should contact LED during development to confirm eligibility before committing the bonus to the production's financial model.

Can a production sell its credits before the certificate is issued?

No. Credits must be certified by LED before they can be transferred to third parties or submitted for state buyback. Some productions use gap financing or production incentive loans against anticipated credits during production, but the credit itself cannot be transferred until the certificate is in hand.

Tracking Qualified Expenditures for Louisiana

Louisiana's credit structure under Act 44 requires more granular expense tracking than most other state programs. Productions need to distinguish between resident and non-resident wages (for the payroll bonus), between New Orleans Metro and out-of-zone expenditures (for the geographic bonus), and between general production costs and VFX spend at Louisiana QECs (for the VFX bonus). Each of these categories has a different effective credit rate.

A production accountant tracking all costs under a single "qualified Louisiana spend" category will produce a total credit figure that is accurate but leaves money on the table when the bonus categories are not properly separated. Saturation's line-item tagging allows crews to be marked as Louisiana resident or non-resident from the first payroll run, location fees to be tagged by metro-area versus out-of-zone from the first location payment, and VFX vendor invoices to be flagged for QEC status at the time of payment. The result is a bonus-category-ready export when the LED audit begins.

Summary: Why Louisiana in 2025

Louisiana's Act 44 restructuring created a more complex incentive structure than the prior flat-rate program, but the ceiling is higher: 40% effective rate is genuinely achievable for productions that make deliberate choices about crew hiring, screenplay sourcing, and filming location. The elimination of per-project and per-person caps removes constraints that previously limited the credit's value on large productions.

The state's two-decade track record means the infrastructure is proven. Celtic Studios in Baton Rouge, Second Line Stages in New Orleans, and the growing third-party facility landscape represent real production capacity built for real productions. The IATSE Local 478 crew base has grown alongside that infrastructure and can staff major productions without importing large numbers of out-of-state crew.

For productions choosing between Louisiana and Georgia at comparable budgets, Louisiana's higher ceiling and deeper infrastructure make it the more compelling choice when the creative doesn't dictate Georgia. For productions choosing between Louisiana and California or New York, the right-to-work flexibility, lower base below-the-line costs, and the 40% effective rate for qualifying productions often make Louisiana the answer when the story can be told in the South.