Sometimes it is easy to forget the practical implications of film tax credits given the political turmoil that surrounds them. In a recent interview, Matthew McConaughey discussed, among other topics, his decision to live in Louisiana. When asked why he keeps returning to New Orleans, he said “One, there’s a great tax break to make films here. [Laughs.] But really, it’s at the top of my list of shooting locations.”
Despite the warm reception from filmmakers, tax credits are always subject to legislative maneuvering, even in favorable states such as Louisiana. Beginning in 2016, the Pelican State introduced new regulations that “bolster auditing and verification of expenses claimed toward the tax credit, place stricter limits on certain expenses deemed eligible for the credit and add new requirements for brokers who sell the tax credits.” While the ultimate effects of these regulations remain to be seen, these amendments are a continued reminder of the importance of monitoring the ever-changing regulations that influence filmmakers in the United States.
To read more about the new tax credit regulations visit:
http://www.nola.com/politics/index.ssf/2015/12/film_tax_credits_tightened_as.html
http://jpmorrell.com/2015/03/31/reforming-film-tax-credits/
Ross A. Carbone, Esq. is an associate in the Corporate practice group of the law firm of DLA Piper LLP (US).