Media Mention: Tax proposal aims to bill La. as ‘Broadway South’

By MELINDA DESLATTE
Associated Press writer
Published: May 14, 2007 - Page: 7A

Hoping to build off Louisiana’s successful tax-break program for the film industry, state lawmakers are considering whether to extend similar tax credits to theater productions in a bid to make Louisiana “Broadway South.”

Louisiana could be the starting point for national tours of Broadway shows — rather than San Francisco, Chicago and Seattle getting world-class shows — and the jobs that come with such an industry, supporters say.

Lawmakers, while weighing the cost, are expressing support for the concept, saying tax breaks could help increase the state’s creative class, rebuild historic landmark theaters across Louisiana, and employ thousands of people.

“This will give us a chance to really just jump out from the entire country and say, ‘We are the Southern cradle of culture. We are a cultural alternative to New York City,’ ” said Roger Wilson, an actor and screenwriter from New Orleans who is pushing the “Broadway South” proposal at the Capitol.

Louisiana earned the moniker “Hollywood South” after enacting a widely successful package of tax credits for films and TV productions in 2002, including tax credits on money spent in the state, and incentives for production companies to hire Louisiana residents and develop infrastructure such as studios in Louisiana.

Dozens of productions have been filmed in the state since the tax breaks began, creating spin-off businesses and jobs. A recent study for the Louisiana Department of Economic Development says the state is third in the United States for moviemaking, behind only California and New York. The report says each $1 invested in the film industry in Louisiana generates $1.85 for the economy.

Rep. Jeff Arnold, D-New Orleans, who is sponsoring the “Broadway South” legislation, said tax credits for theater productions could bring in new investment as well.

The credits would be modeled after the film tax breaks, for productions that hire Louisiana residents such as plumbers, carpenters, musicians and other stage workers and either rehabilitate or build new theaters for traveling shows.

“This is a job-creating monster for Louisiana residents,” Wilson told the House Ways and Means Committee, which is considering the legislation.

A similar bill is filed in the Senate.

An analysis by LSU economist Jim Richardson says the state initially would spend about $4.4 million more in tax breaks than it would get back in revenue for the first few years.

But Richardson estimated that by 2013, the state would make more from the industry than it loses in tax breaks. He also estimated the “Broadway South” tax-credit package would add 14,500 jobs in Louisiana by 2013.

Lawmakers are waiting for a revenue-estimating panel to update its state income projections for the upcoming fiscal year before voting on the “Broadway South” or other tax break proposals in the House and Senate tax committees. They want to know how much money they have to spend before they determine how much to dole out in tax breaks.

Gov. Kathleen Blanco said her staff is analyzing the costs of “Broadway South,” and she hasn’t yet determined whether she will support the theater production tax credits.

“It would need to be very focused,” she said. “It’s an interesting idea, so I’m not going to dismiss it out of hand.”

Credit: Associated Press, Baton Rouge Advocate, City Business