Louisiana Considers Tax Breaks For Game Developers
polycounter lvl 18
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According to local news reports, the state of Louisiana is considering tax breaks specific to the video game industry, in an attempt to lure game creators to set up shop in the state.
The state has already employed an extremely successful similar scheme for film productions using the state, with exemptions on state sales tax (normally 4%), tax credits of 10% for the employee payroll if employees are Louisiana residents, and an additional state income tax credit for investors. Movies including The Dukes Of Hazzard, Ray, and All The King's Men have recently used the state for filming, eschewing other lower-cost filming areas such as Canada.
Mark Smith, the entertainment director for the Department of Economic Development for the state commented to newspaper The Advocate: "It ties in so well with the film industry because a lot of major films coming out are marketed with video games."
However, it's unclear whether games, which sometimes have much longer development times and require markedly different resources to the movie industry, will also find similar or adapted incentives attractive. Nonetheless, Louisiana officials and other public/private sources are expected to be taking further advice and comments from the game industry in the near future.
-Simon Carless
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I saw this on Gamasutra and thought it was pretty interesting. I'd like to see other states follow suit, but I don't know how much of a real impact it will have in actually getting developers to set up shop in that state. Like they said, the game industry isn't like the film industry where a bunch of people will go to a location for a limited amount of time during a shoot and then leave when it's done. But I'm all for anything that keeps local jobs from jumping over seas.
Does anyone know about government sponsored incentives specifically for game developers in other countries? I believe France has something like that in place, but I could be wrong.
According to local news reports, the state of Louisiana is considering tax breaks specific to the video game industry, in an attempt to lure game creators to set up shop in the state.
The state has already employed an extremely successful similar scheme for film productions using the state, with exemptions on state sales tax (normally 4%), tax credits of 10% for the employee payroll if employees are Louisiana residents, and an additional state income tax credit for investors. Movies including The Dukes Of Hazzard, Ray, and All The King's Men have recently used the state for filming, eschewing other lower-cost filming areas such as Canada.
Mark Smith, the entertainment director for the Department of Economic Development for the state commented to newspaper The Advocate: "It ties in so well with the film industry because a lot of major films coming out are marketed with video games."
However, it's unclear whether games, which sometimes have much longer development times and require markedly different resources to the movie industry, will also find similar or adapted incentives attractive. Nonetheless, Louisiana officials and other public/private sources are expected to be taking further advice and comments from the game industry in the near future.
-Simon Carless
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I saw this on Gamasutra and thought it was pretty interesting. I'd like to see other states follow suit, but I don't know how much of a real impact it will have in actually getting developers to set up shop in that state. Like they said, the game industry isn't like the film industry where a bunch of people will go to a location for a limited amount of time during a shoot and then leave when it's done. But I'm all for anything that keeps local jobs from jumping over seas.
Does anyone know about government sponsored incentives specifically for game developers in other countries? I believe France has something like that in place, but I could be wrong.
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But I'm all for anything that keeps local jobs from jumping over seas.
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How? By outsourcing to Louisiana? :-D Are Americans really feeling the financial burn that much? I'm a game developer in the Philippines, and I earn (hmm..does computation) $285 a month, or less than $4,000 a year. I would LOVE it there were a little more outsourcing coming in...
How? By outsourcing to Louisiana? :-D Are Americans really feeling the financial burn that much? I'm a game developer in the Philippines, and I earn (hmm..does computation) $285 a month, or less than $4,000 a year. I would LOVE it there were a little more outsourcing coming in.
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Well its always good to see the other side.
Question from me:
Could you come up with a killer game that would put the Phillipines on the map as its own established center versus just as a outsourcing potential? Like Russia is trying to do.
Another possible positive side effect of monetary incentives for game studios is that smaller, independant studios might be more likely to start up and stay in business, which means more potential for greater creativity in game design. I'd like to see smaller developers push the creative and artistic envelope in games.
As long as costs of living are relatively cheap, most any city is now a viable place to set up a game studio, even though it may have a harder time attracting talent than studios with lots of industry folks already living nearby.