State Film Subsidies: A Glitzy Idea With Little Payoff for States That Commit $1.5 Billion in Tax Credits to Lure Movie Projects

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

State film credits have grown explosively in recent years. Forty-three states offer subsidies to production companies that film there, totaling some $1.5 billion in fiscal year 2010. But how effective are such programs in generating new jobs or bringing in additional revenues for these states? Not very, according to a new report from the Center on Budget and Policy Priorities, which shows that most jobs created under such programs are temporary positions filled by nonresidents and that most states recoup only fraction of the funds committed.

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