Louisiana Internet Software & Technology Association Blog : Louisiana Internet Software & Technology Association : LISTA Blog : LA Technology Law News & Updates

An Op-Ed Submission by Erich Rapp, charter member of the Louisiana Internet Software and Technology Association (LISTA)

From Shreveport and Baton Rouge to Lake Charles and New Orleans, hundreds of technology-based businesses and thousands of savvy professionals and new college graduates are immersed in the state’s growing Internet software and new media industries.

What the rest of the United States is beginning to discover is that they too can benefit from the experience and innovation of these professionals for 35 percent less than their counterparts in other regions of the country. That’s 35 percent added to the bottom line, 35 percent to their market capitalization.

In 2009, at the urging of the Louisiana Internet Software and Technology Association and other advocates for the growth of the state’s technology-based industries, the Louisiana Legislature established tax credits equal to 35 percent of all labor costs paid to Louisiana residents and 25 percent of all production costs spent in the state for digital media initiatives and other software development projects.

These aggressive tax credits placed Louisiana among the top states acting to attract technology-based businesses. As important, these credits are in place now and can benefit companies already working here in both established and emerging industries.

In Shreveport and New Orleans, companies developing computer programs and digital graphics for biotechnology research projects can now do it for 35 percent less in Louisiana. 3D animation studios and video game developers can reduce their overall costs by half by hiring some of the 14,000 professionals working in digital interactive media industries between Baton Rouge, Lafayette and New Orleans. Manufacturing plants along the I-10/I-12 corridor can create plant optimization software and save tens of thousands of dollars. Engineering, communication and aviation companies working in Alexandria, Monroe and Ruston can develop new technologies and programs, while investing in homegrown talent.

For the thousands of Louisiana-based workers and the thousands of college graduates that want to live and work in the state they love, the Digital Media Tax Incentive Program creates their best opportunity to date to establish roots in Louisiana, with an average annual salary of more than $50,000. Importantly, they can put their skills to work and pursue their entrepreneurial dreams.

The Louisiana Department of Economic Development will begin 2010 by reviewing the success of the Digital Interactive Media Tax Credit Program. To date, companies and individuals have submitted dozens of applications. Most importantly, Louisiana’s technology innovators are being put to work in all types of industries that are just now learning about the resources available to them.

We are just powering up.  

Louisiana’s Digital Interactive Media Tax Credit program is working. Louisiana-based technology companies are seeing more business because of it.

Business is coming to Louisiana and more of our people are being put to work in highly skilled, technology-based jobs. Now is the time to push ahead and continue this important program.

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LSU's Center for Digital Innovation is set to receive $1 million in federal funds, which will be used to add jobs and expand Electronic Arts' local operations. U.S. Sen. Mary Landrieu announced the appropriation, which was part of an omnibus bill signed by President Barack Obama last week.

A Landrieu aide says the appropriation was added at the request of LSU, which wanted the money to expand its curriculum and provide new training. The money will lead to some more jobs, but a deal between LSU and EA, "is not yet cooked,” the staffer says. EA, which opened a video game testing facility at LSU last year, has said it is looking at moving some jobs to Baton Rouge in order to take advantage of the low costs. Last week, it was reported that EA is looking at moving a development center from California to several Southern states, including Louisiana. The center could employ up to 300 people.

Excerpt taken from the Baton Rouge Business Report

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The State of Louisiana's economic development department has been trying to persuade Electronic Arts to relocate to or open a new game design studio in Louisiana. EA has already located a game testing center at Louisiana State University, and the state would like to expand EA's presence. Louisiana's digital media tax incentives program was originally focused on attracting game development companies to Louisiana like EA.

Unfortunately, the slow down of the national economy has worked against Louisiana's efforts as EA has seen its own business difficulties during the past year. 

Nevertheless if the State of Louisiana wants to remain attuned to EA's vision of the future of video game development, the State should note that EA has just announced its intention to purchase Playfish, a social game company. See the San Francisco Chronicle article on November 10, 2009 entitled, EA buying Playfish in $300 million deal.

If you are not familiar with social games that have grown out of platforms like Facebook, I found a pretty good definition of social games and also a good list of social game developers on The Social Times Blog in an entry entitled, "What are social games?". 

The various economic development arms of Louisiana and its cities should consider efforts to attract social game developers to Louisiana. If they are successful, they might find that EA is not far behind.

Erich P Rapp.

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