If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Tax breaks awarded to Louisiana's games industry

State incentive aims to encourage further industry growth and attract new businesses

New laws passed in Louisiana will allow videogame companies tax breaks of 25 per cent as an incentive to draw digital media businesses to the state.

The legislation, sponsored by senator Ann Duplessis and approved by governor Bobby Jindal, will give computer and videogame companies a 25 per cent tax credit for digital interactive media expenditures and a ten per cent credit on state payroll taxes.

Praise for the move came from the Entertainment Software Association, which serves the interests of the gaming industry in the US.

"We commend Governor Jindal for his strong leadership as well as that of Senator Duplessis for expanding the state’s computer and videogame development and production base, and helping lead the way in creating the next generation of entertainment innovation in Louisiana," said Michael D Gallagher, president and CEO of the ESA. "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."

Over 4300 people are employed in Louisiana by the entertainment software industry. Since 2001 the state has seen the sector expand with an average annual growth rate of nine per cent.