Louisiana approves game-industry tax breaks

The last time the Entertainment Software Association and the state of Louisiana made headlines, it was as a result of a legal dispute in 2006 over the constitutionality of a law designed to restrict the sale of violent games to minors. With the ESA ultimately emerging victorious in that suit, the intervening years have seen relations between the gaming industry's representative body and the Bayou State considerably improve.

This week, Louisiana Governor Bobby Jindal signed into law tax incentives designed to lure a variety of trades to his state, among them the gaming industry. HB 277, sponsored by state senator Ann Duplessis, offers gaming companies a 25 percent tax credit for expenses made in developing interactive media, with an additional 10 percent credit offered on state payroll taxes. Companies have been able to apply for the tax credit since July 1, 2009.

Following the announcement by Governor Jindal's office, the ESA hailed the move as a good long-term investment for the state. "Developers and publishers live and work for years in states where games are created, providing a higher return on investment than any form of entertainment," said ESA president and CEO Michael Gallagher in a statement.

According to the ESA's figures, more than 80,000 people work in the US gaming industry, directly or indirectly, as of 2007, 4,381 of which are in Louisiana. The ESA further noted that the Louisiana gaming sector has grown on average by 9 percent since 2001.