Fix the problem

Tuesday, May 1, 2007

Louisiana has managed to seduce Hollywood, but if we’re not careful, Hollywood just might want to break up with us.

A few years ago we jumped ahead of the competition and offered tax incentives to lure movie makers. And it worked. Movies and the big-name stars who make them are almost commonplace in Louisiana. And now, thanks to similar tax incentives for movie industry investment in permanent facilities, investors are lining up to invest millions on permanent facilities that could cement Louisiana’s place in the movie biz.

It’s precisely the right kind of clean industry this state needs, but state officials are screwing things up. Investors trying to build studios are finding they can’t get straight answers from Louisiana Economic Development’s Film Office about whether they’ll qualify for tax credits.

Lawmakers first got a whiff of problems with movie industry tax incentives at a hearing back in December, yet many of the problems persist. It’s time for the Legislature and Michael Olivier of Louisiana Economic Development to make resolving the problems a top priority, and to answer some burning questions.

Why, for example, is such a red-hot program snared in red tape? Do low-level bureaucrats have too much authority over the movie industry? Why has it taken Olivier and the LED so long to set forth consistent rules? After all, it’s been years since lawmakers first established movie industry tax credits.

It’s clear now lawmakers did not follow through on their visionary tax credit incentives by demanding the LED and its Film Office carry them out in a fair and consistent manner. Olivier’s department is equally responsible for the state the tax credit program is in.

Too many producers tell stories of being left dangling in the wind waiting for bureaucrats to issue decrees on movie studios or post-production facilities. In some cases they are forced to accept unprecedented caveats and conditions in order to receive the tax incentives.

225 investigated and reported in-depth in April about these problems. We talked to movie producers, investors, elected officials and economic development executives, virtually all of whom are frustrated about LED’s handling of the program.

But the LED’s response, meanwhile, has not inspired. (See their letter to the editor, P. 8).

In LED’s defense, there are promising local projects in the works: Studio City in Port Allen, Emerald Bayou in New Roads, and R.W. Day’s new plan for a $955 million movie studio in Baton Rouge. But it’s crucial the state get its act together quickly.

Lawmakers are scheduled to consider a bill by state Rep. Steve Scalise that would extend the movie infrastructure tax incentive for a few more years, we think that’s a good first step. But it’s also time for lawmakers to hold LED accountable to ensure the tax incentive programs keep creating jobs, avoid red tape, and don’t favor the politically connected.

It’s time for the LED to establish and adhere to clear, fair rules. Otherwise they risk crippling our growing movie industry, just like so many other promising endeavors in Louisiana that have withered at the hands of politicians and bureaucrats.

We’d like to hear your views. E-mail us at editor@225batonrouge.com

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