Louisiana Now Holds the #1 Spot in Music Industry Incentives with Passage of HB 653

In a landmark victory for Louisiana’s music economy, House Bill 653 has officially passed through the Louisiana Senate —securing Louisiana’s position as the nation’s leader in music business incentives.

Pushed forward by Rep. Paula Davis and supported by Senator Franklin Foil, the bill enhances the state’s Sound Recording and Quality Music Company Incentive Program, a legislative effort first introduced in 2005. With overwhelming bipartisan support (final Senate vote: 32-5), HB 653 not only extends the program for another five years—it shifts administration from Louisiana Economic Development to the Lt. Governor’s Office of Cultural Development, a move advocates say will reinvigorate its execution and impact.

Why It Matters

According to Reid Wick, Director of Regional Advocacy & Member Engagement at the Recording Academy, “We now have the best music-related incentives in the country again. Starting July 1, Louisiana becomes the national leader.” The bill restores the sound recording incentive from a reduced 18% rebate back to its original 25%—making the state competitive once more for music production investments.

Louisiana’s music industry already contributes an estimated $1.4 billion to the state’s GDP and supports over 30,000 jobs, but much of that impact has historically come from live events and festivals. With HB 653, Louisiana is betting on growth in less visible but higher-leverage sectors: music publishing, artist management, and recording services—all crucial for capturing long-term revenue and reversing the outflow of cash and talent to cities like Austin, Nashville, and New York.

“You don’t even spend half of the $2.16 million dedicated to this program every year. Why don’t we take some of that money and put it toward incentivizing job growth in the music industry?” – Reid Wick, in a conversation with Newtral Groundz

This practical question led to the bill’s reconfiguration and the creation of a new tool: the Quality Music Company program, which rewards businesses that hire Louisiana residents with payroll tax incentives.

From Survival to Strategy

Reid Wick and a coalition of Recording Academy members and Louisiana Music Partners lobbied tirelessly to ensure the program wasn’t left to die. As Wick explained in our interview, “Economic Development basically told us they didn’t care… so we went to the Lt. Governor’s office—and they said, ‘Yeah, give it to us.’”

With this new framework, Louisiana businesses like Midcitizen, Newtral Groundz Music, and the upcoming NOMAP (New Orleans Music Advancement Program) stand to benefit from real, scalable infrastructure. Entrepreneurs and creators can now hire staff, open studios, and scale production while recouping a meaningful percentage of qualified expenses.

A Bigger Vision

The timing couldn’t be better. According to the Global Music Report, the music industry is expected to hit $45.65 billion globally by 2029, growing at a CAGR of 8.54%. Louisiana, with its rich cultural legacy and pipeline of creative talent, is now positioned to play a serious role in that expansion.

Yet, as Wick emphasized, visibility remains a challenge: “People go to a concert and see five people on stage. They don’t realize it takes an army of hundreds to make that happen—from writers and engineers to promoters and managers.”

That’s why HB 653 is about more than economics—it’s about infrastructure. It acknowledges that Louisiana’s greatest natural resource isn’t just oil or seafood—it’s music. And now, for the first time in years, the policies match the potential.

Here’s what the passage of HB 653 means for upcoming artists and music companies in Louisiana — in plain language:

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🎶 More Money to Make Music

If you’re recording songs, starting a label, or hiring people to help with your music — the state will now give you money back for those expenses. That means you can afford to do more, with less out of pocket.

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💼 Job Support for Music Professionals

If you’re building a music company — a studio, label, or creative agency — and you hire Louisiana residents, you can get payroll tax incentives. That’s like getting a discount on every paycheck you give to your employees. More reasons to hire local talent.

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🎤 Louisiana Is Now #1 in Music Incentives

We’re officially the best state in the U.S. for music-related business support. That makes Louisiana more attractive for studios, labels, and creators. More opportunities could come here instead of going to L.A. or Atlanta.

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🧠 Education + Career Pipeline

Many music students were leaving the state to find work. This law helps keep those jobs here by growing the behind-the-scenes parts of the music industry: publishing, licensing, engineering, and management.

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💡 You Don’t Have to Leave to Succeed

Instead of chasing opportunities out of state, this law is about building the ecosystem right here — so Louisiana musicians can record, promote, and monetize their art without exporting the profits to other cities.