Louisiana Film Tax Credit: A Plain Guide for Producers (2026)

Louisiana pays productions a base credit on in-state spending and a separate bonus for paying Louisiana residents. It was also changed in 2025, when the legislature handed the program's details to rules written by Louisiana Economic Development. This guide covers what the program pays, who qualifies, what the 2025 changes mean, and how to apply.

Everything below was checked against Louisiana Entertainment (Louisiana Economic Development's Office of Entertainment Industry Development) in September 2026. Because the program changed in 2025, confirm the current rules with the office before you budget.

What the incentive is

Louisiana's Motion Picture Production Program (statutorily, the Motion Picture Production Tax Credit) provides productions up to a 40% tax credit on qualified in-state production spending, including resident and non-resident labor.

Here's how it builds:

Base investment credit (on all eligible spend)

• 25% base credit on qualified in-state production expenditures
• 10% more for Louisiana screenplay productions, meaning the production is based on a screenplay by a Louisiana resident, with spend over $50,000 and no more than $5 million
• 5% more for filming outside the New Orleans Metropolitan Statistical Area, if the production's office base and at least 60% of principal photography are outside it

Additional credits (on specific spend only)

• 15% Louisiana resident payroll credit on pay made directly to Louisiana residents. It must be paid to a person, not a loan-out company. The program page still describes it as applying to the first $3 million of a resident's pay, but for productions applying after July 1, 2025 the $3 million individual salary cap was eliminated (see below), so ask the office how the limit applies to your project.
• 5% visual effects credit on qualified VFX spend, if at least 50% of the VFX budget is spent in Louisiana with an approved Qualified Entertainment Company, or at least $1 million of qualified VFX spend happens in Louisiana

Total credits can't exceed 40% of the base investment.

What changed in 2025

Louisiana's 2025 legislative session (Act 44, SB 32) changed how the program is run. According to the office's official overview:

• The per-project cap of $20 million (and $25 million for scripted episodic series) was eliminated for applications after July 1, 2025.
• The $3 million individual salary cap on qualifying spend was eliminated for productions applying after July 1, 2025. Above-the-line pay is still subject to the aggregate above-the-line cap of 40% of Louisiana spend. That is a separate limit from the 40% ceiling on total credits.
• Beginning July 1, 2025, tax credit claims plus transfers to the state (the buyback) are limited to $125 million in total each fiscal year. The Louisiana Department of Revenue also lists $125 million as the most that can be reserved or claimed in any fiscal year from July 1, 2025.
• Administration moved from statute to rules set by Louisiana Economic Development. LED put emergency rules in place in June 2025 that mirror the program as it was, renewed them in December 2025, and said it would write permanent rules with the industry.

We couldn't confirm from the official pages which version of the rules is in force today, so ask Louisiana Entertainment what applies to your project before you lock your plan.

Who qualifies

Qualifying productions include:

• Feature-length motion pictures
• Television pilots, series or movies of the week
• Webisodes and other digitally distributed motion pictures

The minimum in-state spend is $300,000, or $50,000 for Louisiana screenplay productions. You don't need a distribution deal in hand, only a commercial multi-market distribution plan.

The key numbers

Item	What Louisiana Entertainment says
Base credit	25%
Resident payroll credit	Extra 15% on resident pay (not loan-outs). Ask the office how the old $3M per-person limit applies after July 1, 2025
Louisiana screenplay	Extra 10%
Outside New Orleans MSA	Extra 5%
VFX	Extra 5% on qualifying VFX spend
Ceiling	40% of base investment
Minimum spend	$300,000 ($50,000 for Louisiana screenplays)
Yearly cap	$125 million a year on claims plus state buybacks, from July 1, 2025
Buyback	Transfer to the state at 90% of face value, minus a 2% fee (88% net)

What counts as local spend

Services qualify if they're performed in Louisiana. Goods qualify if bought from a source in Louisiana, which the office defines as a business with a physical presence, at least one full-time employee and posted business hours.

Eligible spend includes payroll for work in Louisiana, rentals and purchases from in-state sources used in Louisiana, building materials, and VFX, editing and other post done in Louisiana. Not eligible: salaries for work outside Louisiana, goods from out-of-state sources, marketing and distribution, overhead not tied to production, and catering unless it comes from an in-state source.

Who counts as a Louisiana resident. A legal resident required to file a Louisiana resident income tax return. The resident signs a declaration of residency and gives supporting documents to the production.

The office is direct about crew: there's no required percentage of Louisiana crew, but hiring residents increases the credits a production can earn.

How to apply

1. Apply online through FastLane. Include a detailed preliminary budget, a Louisiana budget, a script or synopsis, a statement that the project is a state-certified production, a notarized statement agreeing to pay all vendors, and any related-party transactions. The application fee and the expenditure verification report deposit must be paid for the application to count as received.
2. Initial Certification. If the project is eligible, LED issues an Initial Certification letter. It doesn't certify any spending yet. It covers expenditures from 12 months before the application date to 24 months after initial certification.
3. Track spending. Keep full cost reports and payroll records, including resident declarations.
4. Cost report and audit. When production is complete, submit a cost report. An independent CPA selected by LED performs the expenditure verification.
5. Final Certification. LED issues final certification for the credit amount.
6. Use or sell it back. Apply the credit to Louisiana income tax, or transfer it to the state for 90% of face value (88% net after a 2% fee).

Hiring local crew in Louisiana

The 15% resident payroll credit is paid on top of the 25% base, so every Louisiana resident on your crew is worth more to your budget than someone flown in. New Orleans has working crew across departments.

You can find Louisiana crew on NeedaCrew by role:

• Gaffers in New Orleans
• Directors of photography in New Orleans
• Key grips in New Orleans
• Production assistants in New Orleans

Or post what you need and let local crew come to you. It's free to post. The hirer pays 5%. Crew keep 100% of their rate.

For other states, see our film incentives by state guide.

Sources

Official sources: Louisiana Entertainment, Motion Picture Production Program, Louisiana Economic Development, Overview of 2025 Legislative Session changes and Louisiana Department of Revenue, Did the motion picture production tax credit change?. Checked September 2026.

This is a plain-language summary, not tax advice. Louisiana's program now runs on rules set by Louisiana Economic Development, and details can change. Confirm every detail with Louisiana Entertainment and your production accountant before you budget.