|Sent on:||Friday, May 10, 2013 9:06 PM|
UPDATE FROM PATRICK MULHEARN ABOUT FRIDAY MAY 10 VICTORY AT THE HOUSE OF REPRESENTATIVES: HB696 AS AMENDED BY REP. LEGER AND REP. PONTI
"Update: Things happen fast in Louisiana politics! HB 696 went from being a total dog of a bill for the industry to a good workhorse in a matter of minutes this morning thanks to Reps. Jack Montoucet, Walt Leger, Erich Ponti , Jeff Thompson, and probably a few others I'm forgetting who actually listened to the indust...ry. The House seemed very satisfied after using a different approach to take the "same bite out of the apple." Now it's off to the Senate Revenue and Fisc. Committee. Anticipate more changes, and stay vigilant just in case. Thanks to the Leger amendment, the bill now mainly does the following:
1) Forces payroll withholding to ensure anyone working on the production, especially out-state-residents, pay taxes to the State Treasury long before the state ever issues tax credits
2) Reduces the tax credit percentage on non-Louisiana resident labor to 20% from 30%. That makes us somewhat less competitive against Georgia and others, but it encourages productions to hire more locals. It means a better ROI for the state.
3) Ensures tax credits are never used to subsidize special events.
4) Allows motion picture tax credits to offset corporate franchise liability, severance tax liability, sales and use tax liability, in addition to income tax liability. Previously, they could only offset income taxes. It also protects the good faith transferee of tax credits in the event someone is caught committing fraud. The State would recapture from the person or entity that committed the fraud.
5) Forces the industry to come up with a plan to become self-sustaining and reduce industry dependence on tax credits.
6) Rigidly defines post-production work to make certain that it takes place in the State of Louisiana.
Thanks to everyone who called and wrote and their Reps, I think they are starting to realize the value we bring to Louisiana... and that we aren't a bunch of pushovers. Next week: Start writing your senators and tell them to KEEP LOUISIANA ROLLING!"
Source: Patrick Mulhearn on Facebook Film Peeps, Friday May 10, 2013