29 May 2023
NO
Some states, such as Virginia and Connecticut, report net gains from film tax credits. However, those gains are negligible compared with other tax credit programs in the same state.
A 2010 study from the Center on Budget and Policy Priorities also found that states such as Massachusetts lost money from their film tax credit programs, resulting in funding cuts to other state programs.
Another research study, conducted by a USC professor in 2019, found that film tax credits did not create a statistically significant increase in employment in the states with the largest programs, and many of the highest paying industry jobs go to non-residents.
The Nevada Legislature is currently considering a bill that would increase the state’s film tax credits from $10 million annually to $190 million over a period of more than 20 years.
This Fact Brief is responsive to conversations such as this one.
Sources
Center on Budget and Policy Priorities State Film Subsidies: Not Much Bang For Too Many Bucks
SAGE Journals Do State Corporate Tax Incentives Create Jobs? Quasi-experimental Evidence from the Entertainment Industry
State of Connecticut 2022 Annual Report
Commonwealth of Virginia Evaluation: Film Incentives
Nevada Independent Massive Nevada film tax credit expansion touted as transformational in first hearing
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