BATON ROUGE A report from the Louisiana legislative auditor found that the state's film tax credit program 'overall fiscal impact of the program on the state was negative,' said a release for Daryl Purpera, Louisiana legislative auditor.
While the program generated $5.40 for the economy for every $1 of tax credits, the Louisiana Department of Economic Development granted $196.8 million in 2010 for tax credits and received $27 million in return in taxes, Purpera's office said in a release.
'While the economic output of the program is positive and shows that the industry is growing,' the audit said, 'the direct cost, or fiscal impact, to state government is negative. The result is a net cost to state government of $169.8 million for calendar year 2010.'
Local governments received $17.3 million in tax revenue in 2010 as a result of the tax credit program, report said.
'The consultant report said in the period from 2008 through 2010, LED approved $431.5 million in tax credits and received $62.8 million in tax revenues in return, for a net cost to the state of $368.7 million. The BaxStarr report said the economic impact of the tax credit program on the overall economy during the same three-year period was $2.46 billion,' said the report.