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Louisiana Governor Signs Game Tax Breaks Bill

Tom Ivan's picture

By Tom Ivan

July 10, 2009

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Louisiana Governor Bobby Jindal has approved $4.9 million in tax breaks for various industries.

Jindal signed nine tax-break bills this week, most of which don't take effect until July 1, reports the Associated Press.

The tax breaks, which Jindal described as "critical tools," will apply to the videogame, music recording and movie industries, among others.

"By signing these bills, we're ensuring that we not only have the ability to remain economically competitive, but that we can continue to move our state forward by making Louisiana the greatest place in the world to find a great paying job and raise a family," he said.

Some further information on the videogame bill signed by Jindal was posted on his website (via GamePolitics).

“SB 277 by Sen. Ann Duplessis is similar to Governor’s package bill HB 457, which extends and expands the Digital Interactive Media Tax Credit by permanently extending and increasing the credit by 5 percent creating a single rate of 25 percent of expenditures plus an additional 10 percent for Louisiana resident payroll expenditures (35 percent total credit for resident payroll). The bill also expands the definition of digital media to include technology companies.”

Entertainment Software Association (ESA) president Michael Gallagher said: “We commend governor Jindal for his strong leadership as well as that of senator Duplessis for expanding the state’s computer and videogame development and production base, and helping lead the way in creating the next generation of entertainment innovation in Louisiana. Developers and publishers live and work for years in states where games are created, providing a higher return on investment than any form of entertainment.”

According to ESA figures, the entertainment software industry directly and indirectly employs more than 80,000 people across the US. As of 2007 there were 4,381 people employed in digital media firms throughout Louisiana.

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MarkJFerreri's picture

As an actor in SoCal, I know the types of submissions the film industry will claim, to get their piece of the pie. California has a allotment set aside, that is 10 times that amount, to be used strictly for films, and this year's budget only has $400K left. The film industry employs many hundreds of people on a film, both directly and indirectly, in many facets of business (who provide both services and products). Their lobbying for a large sum of that money is inevitable (and good for the economy). I say "Good luck!" to the already established (and bankable) software companies, who already have their established personnel (and don't seek the many businesses that a film production does) in getting the funds they seek in this "Tax Break". If, on the other hand, there was a similar benefit solely for the game studios, that would be something to rejoice about.

Raul23's picture

And, Michigan still has the best tax incentives in the nation.

http://www.michiganfilmoffice.org/For-Producers/Film-Credit-FAQs/Default...