Lawmakers seek movie tax credit changes amid FBI investigation
by Mike Hasten - Shreveport Times (excerpt)

BATON ROUGE — Prompted by a federal investigation into allegations of fraud in Louisiana's movie tax credit program, state lawmakers are moving to close loopholes that they say imaginative developers are using to build condos and golf courses.

Federal investigators are looking into whether a former state official who worked on the tax credit program received bribes or other compensation for favoring a New Orleans production facility over other facilities and whether the New Orleans production firm abused the tax credit program. No charges have been filed.

Former Lt. Gov. Bobby Freeman, lobbying for the film industry, tried to get the committee to allow companies that have current plans but haven't started filming to keep their tax credit claims open until 2010 in case for some reason a movie was canceled or delayed and another could be substituted. The committee rejected his request but did grandfather in a planned West Baton Rouge Parish studio, provided it can claim its credits in 24 months.

So far this year, Louisiana has been the location for $400 million in major films. Since the tax credit program started in 2002, $2 billion worth of productions chose Louisiana, according to DED Secretary Michael Olivier. The state ranks third in productions behind California and New York.