In addition to tax subsidies, Louisiana also allows for the sale of tax credits with a goal to increase the amount of money spent in the state on film related services and to promote the usage of New Orleans film workers. Since producers mainly come from out of state and do not have a tax liability in New Orleans, Louisiana allows producers to sell these tax credits to other companies that need them for the discounts they offer. The producers can then directly pocket the cash from these transactions (Susan Christopherson, Interviewed by Vicki Mayer, Tulane University, February 18, 2013. This interview is protected under a creative commons license). The sale of these credits, as of July 2009, can also directly transfer the credits back to the Department of Revenue for 85% of the original face value of the tax credit (Louisiana Statute 47:6007, “Motion Picture Investor Tax Credit,” 2012 revision).
An additional advantage of this system is that the producers do not have to be reliant upon the state’s ability to pay for production. The tax credits are can be directly sold to the taxpayers in Louisiana and can be used to avoid some of their own taxes. Louisiana also gives loans to these productions in order to further incentivize the state film industry. Programs such as NOVAC (New Orleans Video Access Center) also add to the appeal for Hollywood producers by creating a workforce capable of sustaining the film industry. Several schools in New Orleans, such as the University of New Orleans, have created degree programs for majors such as film, theater, and special effects in order to have a locally based labor pool that the producers can have easy access to (Sheri McConnell, Interviewed by Vicki Mayer, Tulane University, March 11, 2013. This interview is protected under a creative commons license). Therefore instead of transporting a workforce from all the way from Hollywood to film locations in Louisiana, the producers can easily hire labor already located and educated in the state (Darcy McKinnon, Interviewed by Vicki Mayer, Tulane University, March 25, 2013. This interview is protected under a creative commons license).
