A state consultant in March estimated the annual economic impact of Louisiana’s film industry at $763 million, based on 2007 numbers. That figure was up 81 percent from 2005 as more producers took advantage of the state’s film-based tax credits.

Seeing the foothold the film industry had gained in Louisiana, lawmakers in the 2009 regular session upgraded a 25 percent film production tax to 30 percent and scale-backs of the incentive that had been in state law. They also removed scale-backs for digital media and sound recording tax credits and set them at 25 percent.

The moves came as other states enhanced their entertainment tax credits to compete with Louisiana.

In December, Baton Rouge filming wrapped on “Battle: Los Angeles,” a Sony Pictures Entertainment Inc. alien-invasion movie set for a February 2011 release through Sony’s Columbia Pictures flag.

The movie, which also filmed in Shreveport, brought more than $25 million in Baton Rouge spending as it based its production at Celtic Media Center. At year’s end, Celtic was pursuing several other major projects, including one that could eclipse the size of “Battle: Los Angeles.”

Orleans Studios LLC sued Louisiana economic development officials over its inability to qualify for 40 percent film infrastructure tax credits from the state. The proposed $42 million project included a pair of California film producers and Baton Rouge attorney J.M. “Tres” Bernhard III as principals.

The biggest proposed film studio for Baton Rouge — developer Robert Day’s $665 million Red Stick Studio Development LLC — won district and appellate court rulings backing its claim that the entire project should qualify for 40 percent tax credits. The state disagreed and was expected to appeal the case to the Louisiana Supreme Court.
.