Film industry leaders say Jindal tax plan would cripple production; administration disagrees

Film industry leaders say Jindal tax plan would cripple production; administration disagrees Fog rolls in -- thanks to several fog machines hooked to oversized fans -- as the crew of the forthcoming 'Percy Jackson: Sea of Monsters' works in the shadow of the Mega-Zeph wooden roller coaster at the former Six Flags New Orleans theme park. Such major studio-backed productions could become a much rarer sight in Louisiana if Gov. Bobby Jindal's proposed tax changes are adopted, film industry leaders say. (Photo by Alan Markfield / Twentieth Century Fox) By Mike Scott, NOLA.com | The Times-Picayune on March 19, 2013 at 10:59 AM, updated March 19, 2013 at 3:18 PM View/Post Comments Louisiana film industry leaders are sounding the alarm over Gov. Bobby Jindal's recently unveiled tax plan, saying it could "eviscerate" the state's TV and movie production industry. In fact, fallout from the plan's mere proposal -- which still must be voted on by legislators -- might be under way already, as projects considering shooting in-state are said to be looking elsewhere until the issue is settled, according to one industry insider. The centerpiece of Jindal's plan would see the scrapping of the state's income and corporate tax in favor of higher and broader sales taxes -- an approach that has been greeted with some skepticism. But the part of the plan that is of particular concern to the film industry is a proposed change to the state's Motion Picture Investor Tax Credit, which has been in place in various forms since 2002 and provides money as an incentive to persuade film and television productions to shoot in Louisiana. As proposed, the Jindal plan would institute a $1 million cap on the amount of individual actors' salaries that production companies could claim as qualifying expenses when applying for tax credits through the program. As the law exists, about one-third of in-state production expenses qualify for state-funded tax credits -- including actors' salaries -- with no ceiling on the amount a production can claim. That makes it one of the more generous among the growing number of similar plans offered by so-called location states, but in just more than a decade it has helped Louisiana become the third-busiest film and TV production hub in the nation, behind only New York and Los Angeles. The Jindal proposal -- part of a wide-ranging plan outlined Thursday (March 14) before the House Ways and Means Committee and the Senate Revenue and Fiscal Affairs Committee -- would save the state money by reducing the amount paid out for the film program. But it would do it at the expense of the industry, one of the state's few economic bright spots over the past decade, according to Will French, the president of the Louisiana Film & Entertainment Association, a nonprofit trade group. "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," French wrote in an advisory to his group's members on Friday, a day after the unveiling of the Jindal plan. On Monday (March 18), French expanded on his remarks, suggesting that the number of jeopardized jobs cited in his alert to members -- 10,000, and based on what he said is the state's own analysis of the industry -- is a conservative one when considering the trickle-down work that film and TV productions provide to catering companies, transportation companies, hotels and the like. The proposed salary cap would mostly affect larger, big-studio productions with A-list stars, a half-dozen or so of which shoot in-state in any given year. But that handful of productions -- think "Django Unchained," "The Curious Case of Benjamin Button" and the forthcoming "G.I. Joe: Retaliation" and "Ender's Game" -- employ far more people than smaller, independent productions, and for much longer periods. "We're talking about six, seven, eight films every year. The problem is that those six, seven or eight spend a tremendous amount of money," French said, adding: "What they're really not understanding is, it's more than just losing five to 10 productions a year. It's about losing 50 percent of the spending in a year." But today (March 19), Secretary of Louisiana Economic Development Stephen Moret reiterated the Jindal administration's commitment to the film industry and predicted the changes will have "a negligible impact" on most productions. Rather, he said, the intention of the new proposal is simply to make sure the state gets the most bang for its tax-credit buck. "We want to focus more credits on in-state activities and provide less credits for activities that have little impact on Louisiana's economy," Moret wrote in an email exchange. He continued: "Louisiana's film program shouldn't be subsidizing the economies of other states, which is why our proposed changes will re-focus the amount of tax credits we currently have to those that promote spending in Louisiana. For expenditures that actually impact the Louisiana economy, there would be little to no effect from these changes." Already, French said he has heard that some productions that had been eyeing a Louisiana shoot are now setting their sights on Georgia and other location states for fear that the tax benefits of shooting in Louisiana might be rendered uncompetitive by the time cameras start rolling. "We're already hearing studio heads are backing out," he said. But, once more, Moret isn't quite as concerned, saying his office is in contact with major studios and that they continue to plan major feature film projects in Louisiana. "Any films that receive initial certification prior to year-end 2013 would not be impacted by these proposals," he said. "We will continue to work closely with the industry on potential tweaks to our proposal in order to do what is best for Louisiana's economy." Still, one such nervous production executive is Scott Niemeyer of Gold Circle Films, a New Orleans native and LFEA officer who is in the early stages of building a full-service, Hollywood-style movie studio in Algiers. Niemeyer, whose long list of credits include 2012's "Pitch Perfect" -- and who is currently in pre-production in Baton Rouge on the film "Search Party" -- is watching what the Legislature does as closely as anyone, as any drop-off in production activity could drastically impact his planned facility. "It will eviscerate the business," Niemeyer said Monday of the Jindal plan. "A salary cap is an absolute deal-breaker for major motion pictures. ... It renders the state of Louisiana no longer competitive with other states, particularly Georgia, which has no salary cap and no spending cap, either. If Louisiana starts capping salaries, the business will erode." In presenting his plan to legislators, Jindal stressed that "it's not etched in stone," adding that he expected it to be adjusted after legislative debates. French and Niemeyer's concerns with the Jindal proposal shouldn't be read as a sign of intractability from the LFEA with regard to tweaking the filmmaker tax credit program. But there's a sensible way to approach it that won't sacrifice an entire industry to fill short-term budget needs, French said. "This is what's really frustrating about this," he said, " And let me first say: We like this governor. The film industry likes this governor. We've grown significantly on his watch. He's not an enemy, and we don't want to be an enemy, and we don't want to oppose his goals and things like that -- but there is a reasoned approach to this. There are ways we can put some controls in place that would not cripple the industry. "There's a middle ground here that we're happy to suggest and work to implement that will help the industry continue to grow within proper fiscal limits -- but the plan as expressed so far is not!

Louisiana Film Prize 2013. Get Your Short In Now

Be a part of the 2nd Annual Film Prize!

Thanks to a weird alignment of the planets (i.e. – tax credits), Louisiana has now become known as Hollywood South. In particular, Shreveport-Bossier, Louisiana has become a hotbed of film production. It’s an easy place to make movies, the people are incredibly nice, and the food and drinks are over-the-top. Our creative community wants to show the world what Shreveport-Bossier is all about. As a result, we devised the amazingly awesome Louisiana Film Prize.

So, What is the Louisiana Film Prize?

The Louisiana Film Prize is a short narrative film contest with one rule: You have to shoot your film in the Shreveport-Bossier area. That’s it. Post production, music and effects can all be done at home. Film in Shreveport-Bossier (and be able to prove it), and you will be eligible for the Louisiana Film Prize and, most importantly, you will be eligible to win it.

How about the Prize?

Ah yes, the prize. Once you complete a rough cut of your film, you must turn it in to us by the deadline. We will then pick 20 finalists. These 20 finalists will each be given $500 and an invite to show their finished film during LA Film Prize Weekend (October 4-6). Here, they will compete for a grand prize of $50,000.

Fifty Grand? Are you Serious?

Yes, we’re serious and, yes, it’s $50,000 in cold, hard cash for the winner. On Louisiana Film Prize weekend, two groups will determine the winner. A panel of celebs and film experts will account for 50% of the vote. The audience will determine the other 50%. If you’re a finalist, you’re invited to stack the votes in your favor. Convince (or, heck, pay) your friends, family, colleagues and anyone else you want to bring to Shreveport-Bossier to vote for your film. If you want to make it happen, you can own half the vote.

http://lafilmprize.com/

Short List of what's FilmingLouisiana March 2013

This is a short list of what is filming in Louisiana for March 2013 with more to come so stay tuned.  This year should be a great one.

Courtesy of Louisiana Film Office

Pre-Production

Airspace
Scooty Woop Entertainment’s feature film Airspace is slated to shoot in Shreveport. Please direct resumes to airspacefilm@gmail.com. More information will become available as this production develops.

Bonnie & Clyde
Sony Pictures Television Mini Series Bonnie & Clyde will start shooting March 7 in Baton Rouge. Please send resumes to bandcproduction@hotmail.com More information will become available as this production develops.

Dawn of the Planet of the Apes
Fox feature film Dawn of the Planet of the Apes will shoot March 2013 in New Orleans. Please send resumes to dotpota@gmail.com.

Heat
Feature film Heat starring Jason Statham will shoot April 1 for 8 weeks in New Orleans. Please direct resumes to heatthemovie@gmail.com

Jingle Doggie
Independent feature film Jingle Doggie will start shooting late March/early April in and around New Orleans. More information will become available as this production develops.

Maze Runner
Gotham Group’s feature film Maze Runner will shoot May 6th to July 1st in Baton Rouge. Please direct resumes to mazerunnerthemovie@gmail.com

The Kennedy Detail
AEI’s feature film The Kennedy Detail will shoot March 11 for 6 weeks in New Orleans. Please direct resumes to kennedyresumes2013@gmail.com

When the Game Stands Tall
Mandalay Pictures’ feature film When the Game Stands Tall will shoot April 22nd for 7 weeks in and around New Orleans. Please direct resumes to standtallmovie@gmail.com

Filming

Grudge Match
Warner Bros. feature film Grudge Match starring Sylvester Stallone, Robert De Niro, and Kevin Hart will shoot January 7th for 45 days in New Orleans. Please send resumes to grudgematch2013@gmail.com

House of Horror
Feature film House of Horror is shooting February 2013 in Baton Rouge. Please direct resumes to hohprod12@gmail.com

Untitled Detective Project
HBO Entertainment’s television series Untitled Detective Project starring Matthew McConaughey and Woody Harrelson is shooting January 22, 2013 until June in New Orleans. Please send resumes to allegraproductions@gmail.com

Universal could be filming ‘Jurassic Park 4’ in Louisiana

By Daniel S Levine, 3/13/2013

 

 

If Universal seriously wants to get Jurassic Park 4 in theaters in summer 2014, the studio has to get moving. While there’s still no director, there are rumors that the studio plans to film it in Baton Rouge, Louisiana.
NOLA.com reported on Tuesday that the director of studio operations at Raleigh Studios in Baton Rouge, Patrick Mulhearn, says that Universal has booked a space from April to November. Raleigh Studios is the same one used for Tom Cruise’s latest action film, Oblivion. Universal also used it for Battleship.
“We have a great relationship with NBC/Uni and really appreciate that they trusted us with both Battleship and Oblivion in the past,” Mulhearn told NOLA. “And we are glad they are considering bringing more production work to Baton Rouge in the near future, whatever that may be. But nothing is confirmed at this point, and I guess you never really know until the office opens and they start building sets.”
The site also noted that Universal filed paperwork in Louisiana to change the name of ‘Cirque Investments LLC’ (which was the name for the 2009 project Cirque du Freak: The Vampire's Assistant) to ‘Ebb Tide Films,’ which could be a code name for JP4.
NBC Universal didn’t have any comment for the story, but it does sound like Universal is planning on shooting something big in the area.
JP4 is in the very early stages for a film that’s supposed to come out on June 13, 2014. According to Slash Film, producer Frank Marshall recently tweeted that there has still been no decision “made regarding where we are shooting.”
Meanwhile, JP fans can enjoy the 3D-release of the original film next month.

Louisiana-based Hollywood Trucks recognized among fast growing companies nationwide by Inc. Magazine

August 23, 2012 by:
Skipper Bond, www.hollywoodtrucksllc.com

Hollywood Trucks, LLC has been recognized by Inc. Magazine as one of the fastest growing companies in North America. The entertainment transportation company is ranked #3 of fastest growing companies within the state of Louisiana, and #15 among all national Logistics & Transportation companies in the United States. The company ranked #676 overall in the Inc. 5000.

“We are humbled and thankful to be included in such a prestigious list,” says Andre Champagne, founder and CEO of Hollywood Trucks. “This could not have happened without the dedication of our team and the cooperation of Louisiana Economic Development.” Louisiana Economic Development (LED) is the state agency that manages the motion picture investor tax credit program, the most successful tax incentive in the world that targets the film and television industry.

Founded in late 2007, Hollywood Trucks has grown from two employees and seven vehicles to 15 employees and over 300 vehicles. The company’s rapid expansion will continue over the next two years as more than 100 units are added to the Louisiana fleet, following by domestic expansion into Park City, Utah and Los Angeles, California, along with an international expansion into Toulouse, Haute-Garonne, France and Shanghai, China, a market quickly emerging as an economic force in the entertainment industry.

“The whole company is excited about embarking on our largest expansion to date. It’s been very invigorating,” says Champagne. “And as we expand, we will continue our mission of deploying new products previously never available to the entertainment industry.”

Hollywood Trucks, LLC is based at Second Line Stages in New Orleans, and Raleigh Studios at the Celtic Media Centre in Baton Rouge. The company is a member of PGA Green network, an arm of the Producer’s Guild of America that promotes environmentally sustainable practices within the film and television industry. The company also has an A plus rating with the Better Business Bureau (BBB). More information is available at www.hollywoodtrucksllc.com.

For over 30 years, Inc. Magazine has been the premier print publication for business owners and entrepreneurs. Introduced in 1982, the Inc. 500 celebrates the fastest growing privately held companies in the United States. In 2007, the list was expanded to create the Inc. 5000 to provide a broader and deeper understanding of the entrepreneurial landscape. More information is available at www.inc.com.

Filminglouisiana August 2012

Filming Louisiana for August 2012

House of Horror, Baton Rouge  hohprod12@gmail.com

Whiskey Bay, Baton Rouge whiskeybayresumes@gmail.com

Ain’t Them Bodies Saints, Shreveport atbsproduction@gmail.com
Aztec Warriors, New Orleans aztecthemovie@gmail.com

 The Hail Mary, Baton Rouge thehailmarymovie@gmail.com or fax resumes to 818.878.3911.

The Pendant, Shreveport crewlouisiana@gmail.com

Twelve Years a Slave, New Orleans twelveyearsnola@yahoo.com

Two Guns, New Orleans twogunsmovieresumes@gmail.com

White House Taken (aka Olympus Has Fallen)Shreveport whitehousetaken.resumes@gmail.com

 Homefront: homefrontresumes@gmail.com

The Butler, New Orleans

butlerproductions@gmail.com

12 Years a Slave: twelveyearsnola@yahoo.com

2 Guns: twogunsmovieresumes@gmail.com

Pitbulls and Parolees Season 4 

Benefits of Louisiana Tax Incentives to the State

The BaxStarr Consulting Group (BSCG) was hired by Louisiana Economic Development (LED) to conduct an economic and fiscal assessment of the State’s entertainment incentives between 2008 and 2010. Accordingly, BSCG staff compiled and analyzed data provided by the State
1 and data collected from its own field research with business and economic development specialists throughout the state. This document reflects not only the current state of the entertainment industry, but takes both a historical look to show how far Louisiana has come, and a forward view to highlight growth opportunities. The economic impact data and analysis contained in the following pages are not intended as a thorough economic assessment of the state’s entire entertainment industry, merely of activity associated with the incentives.
Key Findings
The key findings from BSCG’s economic and fiscal impact analysis are
1.Output multipliers
2. Every $1 of tax credits issued generates the following estimated total economic output: • Film production - $5.71
• Sound recording - $6.47
• Digital media - $6.90
• Live performance - $7.41
2.Louisiana Entertainment Industry Economic Impact • An average of about $710 million per year in economic output for 2008 and 2009
• Approximately $1.08 billion statewide in economic output for 2010 alone, representing a 52 percent increase above the annual average for years 2008 and 2009
_____
FOOTNOTES:
1 Data provided by LED and the Legislative Fiscal Office – collectively hereafter referred to as the "State".
2 Based upon actual data from 2008 and 2009, and estimated data for 2010.
Key Trends
National trends in the motion picture industry are not entirely reflected in Louisiana, which presents something of a positive anomaly. While wages and production numbers shrank nationally, Louisiana saw overall increases since the previous impact analysis.
(The last analysis, covering 2005-2007, was released in 2009 and will hereafter be referred to as either "the previous analysis" or "the 2009 analysis.")
The digital media and sound recording industries have continued to grow since the previous impact analysis was completed. Sound has grown relatively slowly, while the digital interactive media sector is beginning to take hold with an increasing and diversifying demand and market for these products. Digital interactive has also now gone beyond the primary focus of video games.
As the newest sector for Louisiana’s entertainment industry development efforts, live performance represents the least developed industry, although interest in the program is growing, and the credits for infrastructure have been the basis for almost $100 million in investment.

Motion Picture Industry
Louisiana’s flagship incentive program has been a catalyst for substantial film production growth statewide. This increase is reflected in four key areas:
1) number of certified productions (i.e. films/TV series etc. being shot in Louisiana),
2) percentage of overall budgets spent in Louisiana,
3) dollars spent in Louisiana (aka in-state "spend") and
4) wages.
Only 200 productions qualified for tax credits in the six year period between 2002 and 2007, representing an average of about 33 per year. This increased to 275 productions in the three year period 2008-2010, an average of about 92 productions per year.
This represents an increase of 175 percent in the annual volume of films being produced in Louisiana.
Likewise, the proportion of total film production budgets spent in Louisiana has also increased significantly, from 34 percent in 2006 to 64-80 percent in 2010. In 2006 when the law changed to specify that only in-state spending would qualify for tax credits, productions spent approximately 34 percent of their budgets on in-state goods and services. By year-end 2010, that number is estimated to have hit 64 percent, indicating a widespread proliferation of Louisiana-based businesses servicing the industry. When the total spending is adjusted to eliminate mega-productions which tend to import more crew and vendors into Louisiana, and focuses on Louisiana projects budgeted at $20 million or less (90 percent of all film projects in the state), which use more Louisiana goods and services, the in-state spend average climbs even higher, to about 80 percent.
This shift in spending is significant because it reflects the growing maturity of the film industry in Louisiana. For example, services that once had to be performed in Los Angeles can now be secured in Shreveport, and jobs that were once found only in Burbank, CA are now based in New Orleans. Thus the brain drain is slowly being reversed in this sector, with Louisiana natives and their families returning to the Pelican State.
Similarly, the amount of spend in Louisiana increased by 30 percent from 2008-2010. LED estimates that production expenditures occurring in Louisiana reached $474.2 million in 2008; $361.5 million in 2009; and an estimated $674.1 million in 2010, a number BSCG considers conservative. (A number of factors may have created the 2009 decrease including the recession, potential industry strikes and temporary uncertainty about the future of Louisiana’s tax incentives.) These expenditures produced an estimated annual total economic impact – also known as economic output or economic benefit – in Louisiana of approximately $812 million in 2008, $593 million in 2009, and $1.1 billion in 2010. State of Louisiana – Fiscal and Economic Impacts of the Entertainment Incentives The BaxStarr Consulting Group
4 Finally, during a time of nationwide recession, rising unemployment and falling wages, average annual industry wages actually rose by $3,000 between 2008-2010. Although the U.S. Bureau of Labor Statistics does not have industry employment data for 2008-2010, data from IATSE Local 478, the film industry’s predominant trade union, demonstrates that Louisiana membership has grown from 776 in 2008 to more than 850 in 2010. An additional 200 professionals now work in other associated trades. Direct in-state wages for film projects have grown from approximately $163 million in 2008 to $106 million in 2009 to a conservative estimate for 2010 of $213 million (calculated by taking only 75 percent of those reported on initial certifications). According to IATSE figures, its members’ average annual wages have now hit approximately $55,000 plus benefits, compared to more than $52,000 in 2008.