Louisiana film tax credit: the 25% base credit, uplifts, caps and the 88% state buyback

By the Tax Field Guide editorial team. Published 2026-11-03. Facts checked 2026-11-03. Related strategies: Research and Development Credits, Purchased Energy Credits.

Education only; not tax, legal or investment advice. Tax rules change, and how they apply depends on your facts. No outcome is guaranteed.

Louisiana's motion picture production tax credit is one of the oldest state film incentives, and its credits can be used by the production, sold to another Louisiana taxpayer, or sold back to the state. This guide summarizes how the credit works, using Louisiana Economic Development (LED) and the statute as sources. For every Louisiana incentive we track, see the Louisiana state page.

How much is the credit?

For applications received on or after July 1, 2017, LED describes the program as up to a 40% credit on total qualified in-state production expenditures, including resident and non-resident labor:¹

25% base credit on qualified in-state production expenditures.
+10% for Louisiana screenplay productions (a screenplay by a Louisiana resident, with expenditures over $50,000 but no more than $5 million).
+5% if the production's office base and at least 60% of principal photography are outside the New Orleans metropolitan statistical area.
+5% on visual effects spend if at least 50% of the VFX budget is spent in Louisiana with an approved company, or at least $1 million of qualified VFX spend is made in Louisiana.

The minimum in-state spend is $300,000, or $50,000 for Louisiana screenplay productions.¹

Caps

LED states the maximum amount of credits that can be issued is $150 million per fiscal year, and the maximum that can be claimed is $180 million per fiscal year.¹ LED has also issued emergency rules for the program; check LED's current rules before relying on any figure.¹

How the credit is certified

LED lists the steps: an online application with fees, initial certification, tracking expenses, a cost report, an expenditure verification report by an independent CPA selected by LED, and then final certification of the credit amount.¹

Three ways to use the credit

Claim it against Louisiana personal or corporate income tax.¹
Sell it back to the state. For projects applying on or after July 1, 2017, the production company or its irrevocable designee can transfer the credits to the Louisiana Department of Revenue for 90% of face value.² LED notes a 2% transfer fee, for an 88% net.¹
Sell it to another Louisiana taxpayer. Unclaimed credits can be transferred or sold, but the transfer must be reported to the Department of Revenue within ten business days and is not effective until recorded in the state tax credit registry. A transfer does not extend the carryforward period.² The Department's credit utilization form (R-6140) also requires the seller to certify it has no delinquent federal, state or local tax obligation.³

People who broker Louisiana motion picture investor tax credits must pass a background check and appear on the Department of Revenue's public broker registry; transfers by unregistered brokers are treated as having no legal effect.⁴ If you are buying credits, ask for the registry entry. See buying Louisiana tax credits and questions to ask a tax credit broker.

Other Louisiana entertainment programs

LED lists a digital interactive media and software credit (up to 25% of qualified in-state payroll plus 18% of qualified production expenditures) and an entertainment job creation program as active. It lists the sound recording, live performance and music job creation programs as sunset programs that no longer accept new applicants.⁵

Common questions

How much is the Louisiana film tax credit?

A 25% base credit on qualified in-state spend, with uplifts of 10% for Louisiana screenplays, 5% for filming outside the New Orleans area and 5% on qualifying VFX spend, for up to 40% according to LED.

Can Louisiana film tax credits be sold?

Yes. They can be sold to another Louisiana taxpayer, with notice to the Department of Revenue, or transferred back to the state for 90% of face value (88% net after a 2% fee).

Is there a cap on the Louisiana film credit?

LED states that no more than $150 million of credits can be issued, and no more than $180 million claimed, per fiscal year.

Education only; not tax, legal or investment advice. Talk to a qualified professional before acting.

Sources

Louisiana Entertainment (LED), Motion Picture Production Program, https://www.louisianaentertainment.gov/film/motion-picture-production-program
Louisiana Legislature, R.S. 47:6007, https://www.legis.la.gov/Legis/Law.aspx?d=102363
Louisiana Department of Revenue, Form R-6140 Credit Utilization Form, https://dam.ldr.la.gov/taxforms/6140-8-23-F.pdf
Louisiana Department of Revenue, Public Registry of Motion Picture Investor Tax Credit Brokers, https://revenue.louisiana.gov/LawsAndPolicies/BrokerRegistry
Louisiana Economic Development, incentives list, https://www.louisianaentertainment.gov/digital-media/digital-media-incentive

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