052004LA.html

• Louisiana Governor's Office of Film & Television Development
Alex Schott, Director
o Phone (504) 736-7280
o Website www.lafilm.org
Louisiana Film office
Physical Address:
1051 North 3rd Street
Baton Rouge, Louisiana 70802
Mailing Address:
Post Office Box 94185
Baton Rouge, Louisiana 70804-9185
Office Phone: 225.342.5403
Office Fax: 225.342.5554
Production Information Hot Line: 225-342-FILM or 225-342-3456

Sherri MCConnell
director of Entertainment
Christopher J. Stelly
director of
Film & TeleVision
Lynn OUrso
director of Music
AMBER HAVENS
Public information officer
Patrick Mulhearn
Assistant Director of
Film & Television
Sharon Tillman
Admin. Assistant

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INCENTIVES INDEX FOR THIS PAGE: (click to go directly below)
Transferable investor tax credit - If the total base investment is greater than three-hundred thousand dollars ($300,000), each investor shall be allowed a tax credit of twenty-five percent (25%) of the base investment made in the state of Louisiana.
Provides an employment tax credit (10% if in-state payroll expenditures are between $300,000 and $1 million and 20% if in-state payroll exceeds $1 million) against the aggregate payroll for Louisiana residents, must spend at least $300,000 in a taxable year (Effective 7/1/02-6/30/06).
Sales and Use Tax Exclusion grants an exclusion from state sales and use tax (4%) until January 1, 2007.

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Louisiana Film & Television Summary
This report summarizes the findings of the economic research conducted by SHA Consulting Services, on behalf of the Governor's Office of Film and Television Development.
     The goal of the research was to take a snapshot measurement of the most recent year of economic and fiscal impacts of the film and television industry on Louisiana (the State).
     SHA was also tasked with determining the success of the State's Motion Picture Incentive Act (MPIA) of 2002. SHA compiled industry data for the year 2003 from various sources, determined the industry's direct spending and estimated its indirect spending in the State and determined other impacts using economic models of the State.
    SHA determined that the film and television industry in the State directly generated about $106 million in economic output in the year 2003.
    The industry directly employed the equivalent of 747 full time workers in 2003 with an average annual compensation of $31,444. By tracing the industry's
dollars through the State's economy, we calculated the downstream economic impacts of the industry on the State. These impacts were sufficient to sustain work for the equivalent of 1,602 full time jobs in the State at an average compensation of $26,200 a year.
     With over $173 million of the State's total economic output and $25 million of its labor compensation due to the industry, the fiscal revenue impacts were found to be significant.
     The State receives taxes and fees totaling over $8 million because of the film and television industry.
     From 1997 to 2003, the State's film industry experienced more rapid growth than the state as a whole. Companies in the film industry showed a 4.79% compound annual growth rate for employment, 12.90% for wages, and 13.11% for receipts. For the State, growth rates were 3.16%, 7.52%, and 7.52% respectively.
     The total output to the State's economy due to the MPIA of 2002 was $107M.
     The direct spending of $66.4M would not exist if the State did not have the incentives.
     The presence of these production companies in the State during 2003 supported 1,530 FTEs. Production companies filming in the State because of the MPIA during 2003 generated $6.3M in tax revenue.
     Although the State currently ranks first in the aggressiveness of its film tax credits, the State has to remain proactive in its quest to become a Òfilm-production-friendlyÓ state. Other states are pushing to pass legislation that will offer production companies larger incentives than the State currently offers.
...................................The incentive program has attracted considerable interest from Hollywood. In August of 2003, the Louisiana Institute of Film Technology, LLC, a New Orleans startup, announced a deal with HSI Productions Inc. of Los Angeles to bring $100 million in production to the State over five years. ÒUnchain My HeartÓ was originally scheduled to be filmed in Georgia, but relocated to the State because of the incentives.
      Others, including studios such as RKO Pictures, also have expressed interest in making movies in the State in order to take advantage of the incentives.
Disney was the first major studio to use the program.
     Backers say that the incentives give the State the means to compete with places such as Canada, which has built a formidable film industry by making it cheaper for film companies to shoot there over traditional production locations such as Southern California.
     The production turnaround is likely to continue to build momentum in the coming year as executives from recently completed projects spread positive words about the experience of shooting in the State. ....................READ MORE

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If you ask anyone involved in film production what the major criteria are for choosing a location, "incentives" seems to be very high on the priority list, if not number one in many cases.
........................................................LOUISIANA has experienced increased and steady production activity since the inception of the Motion Picture Incentive Act of 2002, according to Mark Smith, director of the Louisiana Governor's Office of Film and Television Development. "There have been quite a few major motion pictures shot in the state since July of 2002, including Runaway Jury, with Dustin Hoffman, Gene Hackman and John Cusack (the first feature film to take advantage of the incentives); Ray (formerly titled Unchain My Heart: The Ray Charles Story), starring Jamie Fox; Disney's Mr. 3000, starring Bernie Mac; Fox's Because of Winn Dixie; and Skeleton Key, featuring Kate Hudson and Peter Saarsgard." Smaller independent productions have shot in Louisiana as well, such as A Love Song for Bobby Long with John Travolta, and Home of Phobia, which premiered at the Sundance Film Festival.

Not only has there been an increase in feature productions, Louisiana has had its share of television activity as well. Several movies of the week (Infidelity - Lifetime, Stuck in the Suburbs & Pop Rocks - ABC Cable, and the second Growing Pains Reunion) have been shot in the New Orleans area. Two television pilots, Nikki & Nora (premiering on UPN as a midseason start-up) and Dean Koontz's Frankenstein (USA Networks), were also shot there.

Smith cites Louisiana's generous film tax credits and the motion picture incentives as the main attraction and reason for the increase in production activity throughout the state. "One incentive grants a sales tax exemption for a production company that reports expenditures from a Louisiana checking account of more than $250,000. Another provides a 10% credit on the total aggregate payroll of Louisiana hires between $300,000 and $1 million and a 20% credit on projects over $1 million." A third incentive, and perhaps the most important, according to Smith, gives a 10% tax credit to investors in projects ranging in cost between $300,000 and $8 million, and a 15% credit to productions of $8 million or more.

With a strong crew base, diverse settings, and a thriving nightlife, New Orleans remains the top location destination for most production companies, according to Smith. However, surrounding communities such as Napoleonville, Thibodeaux (Because of Winn Dixie) and Hammond are also attractive for filming due to their quaint hometown feel and their proximity to New Orleans.

"Louisiana is obviously the choice location for productions set in the state," said Smith, "but Louisiana is quite diverse - and generic cities such as Metairie and Madisonville can double for 'Anytown USA.'" Films such as Ray, Mr. 3000 and Because of Winn Dixie were not even set in Louisiana, yet they used the state as a double for Georgia, Wisconsin and Florida, respectively.

Productions should not be limited to the New Orleans area, according to Smith, because there are enough exotic and "old-world" areas of Louisiana to make it the perfect international location double - from the swampy river basin to the dense, lush forests of the northern corner of Louisiana.

Location fees throughout the state are competitively low for both private and public locations. Most residents are willing to allow the use of their homes or other facilities for nominal charges. The state, along with the City of New Orleans, offers public buildings, roadways and public locations for little or no charge.

Also available for production companies to use is the Nims Center Studios in New Orleans. A fully functional and modern soundstage facility, the Nims Center is operated in cooperation with the University of New Orleans, the Governor's Office of Film & Television Development, and the New Orleans Office of Film & Video. The center can fulfill any studio needs, according to Smith, including stage and office rental, HD post-production, visual effects and 3-D animation, and motion capture capability.

There are no state fees or permitting processes at the state level; Louisiana also has no insurance requirements, with the exception of Workers' Compensation. Louisiana is a right-to-work state; however, there are film industry unions and guilds such as the Teamsters, IATSE, DGA, SAG, and AFTRA.

While New Orleans doesn't require a shooting permit, there may be minor charges or permits for city services. For other communities, filmmakers are urged to contact local officials and police in order to determine the area's requirements.

Regarding support services, the Governor's Office of Film & Television has contacts with several hotels, car rental companies, airlines, restaurants, nightlife, travel industry professionals, historic sites, state parks, plantations, swamp tours and much more.................................................READ ENTIRE ARTICLE ABOUT THE SOUTH

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Subject: Louisiana information
Date: Fri, 23 Jul 2004 13:55:35 -0700 (PDT)
From: Kathleen Courtney
To: markheadley12@aol.com

As requested, I am sharing my experiences while shooting a feature film in Louisiana.

I was the UPM on "Because of Winn-Dixie", which shot mainly in Napoleonville, Louisiana, September through December 2003, as well as additional photography in June 2004.

My experience was primarily a good one for several reasons. The main reason being that we saved approximately $2.5 million on our production budget, which was less than $20
million, through a Louisiana tax incentive. Secondly, many of the crew members were of a quality that I would happily hire again. We were very pleased with the professional
nature of most of our local crew, notably production, construction, props, costumes, greens, set dressers, and sound. Thirdly, the Louisiana film office, particularly Mark Smith, was
always ready and willing to do his part to make our experience a professional and profitable one.

Unfortunately, Louisiana does not have the depth of crew required to support more than one substantial feature at a time. We were very fortunate that we were the only feature
shooting during our principal photography. Still, we did have to bring in more crew than we had hoped (assistant directors, grips, boom operator, drivers, accounting staff, some
camera crew, editorial staff, script supervisor, video assist, and several department heads). Each film that comes in to Louisiana brings more experience and training to each
department, so their film community keeps growing. I know of several people who have moved to Louisiana due to the significant increase of productions. Louisiana's low budget
and commercial industry was always there, but that has also increased due to their wonderfully executed incentive plan.

Business is business, and financiers will always want to get the most value for their money. If California could establish a competitive incentive plan, imagine the possibilities!

Please contact me if you need any further information about shooting in Louisiana.

P.S. -- Thank you (and Liz) for getting me on the list for the incentive seminar. And please let me know if I can be of further use for you, having worked in Vancouver, Montreal,
Mexico, Australia as well as Louisiana
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A MESSAGE TO ALL MEMBERS:
I HAVE BEEN A DGA MEMBER FOR NEARLY 20 YEARS. I'M ORIGINALLY FROM NEW
ORLEANS AND MOVED BACK. I HAVE A PRODUCTION COMPANY LOCATED HERE THAT
OFFERS PRODUCTION SERVICES AND TAX CREDIT SERVICES.
IF YOU OR ANYONE YOU KNOW IS HEADED THIS WAY WITH A PROJECT-- GIVE US A
CALL.
WE'RE CURRENTLY HANDLING ALL SERVICES ON TWO MOVIES.

Oley Sassone
Louisiana Producers Film Source
THE SOURCE
541 Julia St., Suite 200
New Orleans, La. 70130
504 566-1225 Office
504 566-4744 FAX
oleysassone@louisianafilmsource. com
______________________________________________________________________
________________________________________________________________________
Oley is the brightest, most honest and connected resource connection in New
Orleans and he knows how to get you the best value and where to find the lowest
costs. You'll put yourself at an immediate disadvantage if you go to
Louisiana without first contacting him before hand.

Randy Turrow
DGA UPM and
Chair, Mentor Comm
310 801 6325
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From DGA UPM David Dwiggins:
From: dldwiggins@aol.com
Subject: Re: Louisiana filming

Louisiana has a good Film Commission Website (LAFILM.ORG) which is a great
place to start. The tier contract is most likely the way to go.

Due to higher production volume lately (in response to the tax incentive
program) it is wise to check carefully on all availabilities- crew and equipment.
Mike McHugh is the business agent at local 478 and will give you a realistic
picture on his members' work level.

To negotiate with the IA for filming in Louisiana, you must deal with a business agent based in
Baltimore. I am preparing to do a 1.6 million dollar picture in Louisiana and he gave me rates as
follows: Key - $19/hr, 2nd - $17/hr, 3rd - $15.50/hr. The union fringes are $40/day.

I am not sure how high a budget you can have and still qualify for these rates. That is something
you should talk to the IA about. I am a big proponent of letting the unions know what you are
planning. If you can reach a deal with them that works for your budget, all well and good. If the
deal they propose is beyond your reach, it is better to tell them that than to try to sneak "under
their radar." Most unions will try to find some workable deal. Nevertheless, a few will feel they
must stand their ground. Good luck.

Robert Brown
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TORONTO, Sept. 12 - A rollicking New Orleans jazz band enlivened a Monday breakfast session meant to convince movie producers at the Toronto International Film Festival that the burgeoning Louisiana film industry was still viable.

But a more sober reality was not far below the surface: Louisiana faces a daunting challenge to convince Hollywood producers, who were lured to the state in recent years by generous tax incentives, to continue bringing their productions here.

"Deja Vu," <http://movies2.nytimes.com/gst/movies/titlelist.html?v_idlist=159857;13122;82124;268431&inline=nyt_ttl> a big-budget Disney film that was shooting in New Orleans when Hurricane Katrina hit, moved out of state to continue production, as did "The Last Time," starring Brendan Fraser <http://movies2.nytimes.com/gst/movies/filmography.html?p_id=24843&inline=nyt-per> and Michael Keaton <http://movies2.nytimes.com/gst/movies/filmography.html?p_id=37277&inline=nyt-per>, Louisiana producers and state officials said.

Another Disney film, "Guardian," <http://movies2.nytimes.com/gst/movies/titlelist.html?v_idlist=241392;93964&inline=nyt_ttl> starring Kevin Costner <http://movies2.nytimes.com/gst/movies/filmography.html?p_id=15189&inline=nyt-per>, with an estimated budget of $150 million, will continue to film in the state, relocating north to Shreveport, the officials said. A Disney representative confirmed the decision. "The Reaping," a Warner Brothers thriller starring Hilary Swank <http://movies2.nytimes.com/gst/movies/filmography.html?p_id=167442&inline=nyt-per>, is shooting in Baton Rouge, after a break of a few days for the storm.

Louisiana film executives insisted that the state could still accommodate productions, despite the catastrophic damage to New Orleans and surrounding areas, where the overwhelming majority of film production occurs.

"Film production can still come to Louisiana," said Will French, who heads Louisiana Production Capital, a company that helps producers navigate the tax incentive system. "It's not as bad as CNN makes it look." He displayed a map to demonstrate that many parts of New Orleans have no flooding at the moment.

And the producer Michel Shane announced that he had moved production of the upcoming fantasy-drama "Paranoia," <http://movies2.nytimes.com/gst/movies/titlelist.html?v_idlist=97880;65719;166712;176711;160266;156140;139777&inline=nyt_ttl> directed by Tony Kaye, from Brazil to Louisiana, to help the state.

"We sat down and decided it would be great empowerment for Louisiana to go there, take displaced people, and put them back to work," Mr. Shane said.

Neither of the state's top two film officials, the director of the governor's office of film and television, and the director of the entertainment division in the state's economic development office, were present at the Toronto festival.

Speaking from Baton Rouge, where he had just relocated, Alex Schott, the director of the governor's film office, said Louisiana had lost a couple of film productions because of the hurricane but hoped not to lose many more.

"Right now our efforts are in relocating productions to other parts of the state," he said. "We're going to fight for every one we can. We realize that we might lose one or two, but over all the conversations I've had have been very positive."

Film production has become a crucial source of income for Louisiana, which in 2002 adopted among the most aggressive tax incentives in the country. An estimated 20 movies will be shot in the state this year, with a direct economic benefit estimated at $125 million. (While the total budgets of films shot in Louisiana is higher, not all of the money is spent in the state.)

This year the state legislature voted to curtail those incentives starting next year, when the tax credit will be limited to money spent in the state. Asked if the new law, combined with hurricane damage, might make keeping production in the state more difficult, Mr. Schott pointed out that the tax credit had been raised to 25 percent from 18 percent, though that figure would now apply only to direct expenditures in the state.

"We are rising to this challenge, but it certainly will be a challenge," he said.

And even at Monday's upbeat event, the difficulties ahead were evident. Stuart Benjamin, a producer of last year's "Ray," <http://movies2.nytimes.com/gst/movies/movie.html?v_id=287477&inline=nyt_ttl> which was shot in Louisiana, was supposed to announce his intention to film an action movie about a hurricane, "Hurricane Chaser," in the state. But on reflection, he hesitated. "I think we're going to make the movie," he said. "But it's a bit premature."